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.
