Head of SAL to Asharq Al-Awsat: We Invest $399 Mn in Infrastructure

SAL facilities in Jeddah (Asharq AL-Awsat)
SAL facilities in Jeddah (Asharq AL-Awsat)
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Head of SAL to Asharq Al-Awsat: We Invest $399 Mn in Infrastructure

SAL facilities in Jeddah (Asharq AL-Awsat)
SAL facilities in Jeddah (Asharq AL-Awsat)

The Saudi Logistics Services (SAL) allocated $399 million worth of investments to implement a series of infrastructure projects by the end of 2027, announced CEO Faisal al-Beddah.

The investment aims to enhance the company's presence and position as a leading company in cargo handling, logistics services, and storage.

It also supports the efforts to establish the Kingdom as a global logistics hub and achieve the goals of Vision 2030.

Beddah told Asharq Al-Awsat that these investments align with the company's aspirations to handle 4.5 million tons of cargo through expansion plans for the company's stations at Riyadh and Jeddah airports until the end of 2027.

The company plans to develop its assets and facilities at the existing facilities in Jeddah, Riyadh, and Dammam.

Jeddah Airport

Beddah presented the company's investment plan for the second phase of development at the Jeddah Airport.

It includes the construction of a storage warehouse with an area exceeding 24,000 square meters within a site extending over 70,000 square meters.

Jeddah airport serves as the company's key ground handling station after undergoing development and expansion in 2021.

The expansion phase of the station's quality and ground handling services covers an area of 40,000 square meters.

It includes various cargo facilities equipped with state-of-the-art facilities, complying with international standards, and automated handling systems.

The services cover export, import, and various types of shipments, including medical, food, high-value, hazardous, and transit.

The station's development will increase the cargo facilities' handling capacity to approximately 1.1 million tons annually.

It is also expected to serve passenger air transportation, with an anticipated increase in transportation movement due to the growing number of flights for Hajj and Umrah travelers.

Express Mail

The official mentioned that among SAL's investments is the launch of the Express Mail station, a new facility for shipping services at Jeddah airport, providing distinguished shipping solutions that meet the specific needs of the e-commerce sector.

The facility will further enhance SAL's position as a prominent facility in the logistics solutions that serve the e-commerce sector, which will positively impact the growth of companies conducting their activities through e-platforms.

Riyadh Airport

The development of SAL's facility at Riyadh Airport includes renovating an operational facility spanning an area of 48,000 square meters within a site of 70,000 square meters.

According to Beddah, the renovations will include structural, electrical, and mechanical constructions and the complete replacement of the cargo handling system with an advanced one.

The development plan for the facilities also includes implementing functional changes in the Phase 1 warehouse to continue the main objective for Riyadh Airport.

Dammam

Beddah added that the plan includes, in its final phase, the development of Dammam Airport to enhance ground handling services in the air cargo sector in the Kingdom.

The building is undergoing limited-scale renovation plans to improve the working environment and enhance operational functions.

Like Riyadh Airport, Dammam Airport's improvements, and renovations will cover all structural, electrical, and mechanical constructions.

However, the main difference lies in the scope of the renovation and restoration works, which will be limited in the area according to a deliberate methodology.

He told Asharq Al-Awsat that the airport would be equipped with modern machines like those used in Jeddah and Riyadh airports.

Robots

As part of its investment strategy, SAL is adopting automated operating systems and digital transformation, which will bring about a qualitative leap within the logistics services sector, including robots and intelligent sorting solutions.

Beddah explained that it would improve SAL's warehouse management, streamline order fulfillment processes, reduce error rates, ensure fast and efficient order handling, and ultimately achieve high customer satisfaction.

SAL relies on advanced tracking and tracing systems while providing customers with real-time information and detailed analytics to monitor their shipments at various stages of the delivery process.

He indicated that the company had signed agreements with Microsoft Arabia to support its ambitions in enhancing digital transformation initiatives in the logistics sector.

Sector Growth

According to Beddah, through its extensive network of operations, the company has played a pivotal role in driving the growth and development of the logistics services sector in the Kingdom.

SAL manages over 162,000 square meters of advanced warehouses and storage facilities at strategic locations across 18 airports in Saudi Arabia.

All facilities have the latest advanced technological solutions and automated operating systems.

Beddah further stated that the company possesses a large fleet of vehicles and operates a vast network of distribution centers, ensuring its ability to execute delivery operations quickly and with high reliability across different regions.

Market share

The market share of SAL is estimated at 95 percent in the Saudi market for air freight, and it provides integrated services and solutions that serve the logistical sector.

 



Egypt, Cyprus Sign Gas Export Deals, Boosting Eastern Mediterranean Energy Cooperation

The logo of Italian energy company Eni is seen at a gas station in Rome, Italy August 16, 2018. (Reuters)
The logo of Italian energy company Eni is seen at a gas station in Rome, Italy August 16, 2018. (Reuters)
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Egypt, Cyprus Sign Gas Export Deals, Boosting Eastern Mediterranean Energy Cooperation

The logo of Italian energy company Eni is seen at a gas station in Rome, Italy August 16, 2018. (Reuters)
The logo of Italian energy company Eni is seen at a gas station in Rome, Italy August 16, 2018. (Reuters)

Egypt and Cyprus signed agreements on Monday enabling the export of gas from Cyprus's offshore fields to Egypt for liquefaction and re-export to Europe, as both countries seek to bolster the Eastern Mediterranean's role as an energy hub.

The deals signed at the 2025 Egypt Energy Show formalize a long-anticipated plan to link Cypriot reserves to Egypt’s liquefied natural gas (LNG) facilities, a move that leverages Egypt’s existing infrastructure to process and ship natural gas to European markets.

Monday's agreements involve gas extracted from one Cypriot site, Cronos Block 6 - now under license to a consortium of Italy's Eni and France's Total - to be processed at Egypt's Zohr facilities before being liquefied at Damietta and exported to Europe.

A second memorandum of understanding outlines a framework of processing gas from Cyprus' offshore Aphrodite field, under license to a Chevron-led consortium, which will also be sent to Egypt for processing.

The east Mediterranean has yielded some major gas discoveries in recent years, while a disruption in energy supplies from Russia after its invasion of Ukraine in 2022 has sharpened Europe's attention on securing supplies elsewhere.

"The essence of these agreements is not limited to promoting the exploitation of deposits, but broadens the prospects for energy cooperation with Egypt, while contributing to regional stability and strengthening our country's geopolitical position in the Eastern Mediterranean," a statement from Cyprus's Presidency said.

Cypriot officials have previously said they expect gas from Block 6 Cronos to possibly come online in 2026 or 2027. Cronos gas in place is estimated at more than 3 trillion cubic feet (tcf).

Aphrodite holds an estimated 3.5 tcf of gas. Israel's NewMed, a member of the consortium, expects gas to come online in 2031, it said in a stock exchange filing on Sunday.

In a Monday filing update, it said the "non-binding" MoU envisaged that Egypt's national gas company, EGAS, would be the sole buyer of the gas produced from Aphrodite, while the partners would be granted an option to purchase specific quantities of the gas sold to EGAS as LNG.

The signing of the Aphrodite deal follows a recent breakthrough between Cyprus and the Chevron-led consortium after months of disagreement over a development plan.

The agreement provides a boost for Egypt, which has struggled with declining domestic gas production and last year returned to being a net importer of natural gas.

Egypt recently signed $3 billion worth of LNG supply deals with Shell and TotalEnergies to cover domestic demand for 2025.

Egyptian Prime Minister Mostafa Madbouly has emphasized the country's need to ramp up production at its own Zohr gas field, where operator Eni has resumed drilling after output dropped to 1.9 billion cubic feet per day in early 2024.