ASMO Targets Six Saudi Logistics Hubs as Aramco–DHL Venture Scales Up

ASMO Targets Six Saudi Logistics Hubs as Aramco–DHL Venture Scales Up

Expects to oversee annual procurement volumes exceeding US$8 billion once all sites are operational
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ASMO, the logistics joint venture between Saudi Aramco and DHL, has announced plans to operate six strategically located logistics facilities across Saudi Arabia by 2030, aiming to expand the Kingdom’s supply-chain infrastructure and support industrial growth under Vision 2030.

The company - officially known as Advanced Supply Management Operations - said it will build on its existing operations by managing three newly integrated Aramco logistics facilities and developing three purpose-built state-of-the-art hubs over the next five years.

ASMO expects to oversee annual procurement volumes exceeding US$8 billion once all sites are operational.

ASMO has already begun expanding its footprint. The joint venture recently launched operations at the Central Pipe Yard (CPY) near Abqaiq in Saudi Arabia’s Eastern Province, a facility spanning roughly five million square meters that is now the largest site in its network.

CPY joins existing Aramco sites in Riyadh and Jazan under ASMO’s management, forming the core of its emerging national logistics network.

The hubs are designed to provide integrated logistics services, including warehousing, inventory management, and distribution support for Aramco’s upstream, downstream, and industrial projects. ASMO says its facilities will increase supply-chain transparency, improve delivery performance and material flow, and support local and regional industrial demand.

Strategic positioning of the hubs near key industrial zones and transport corridors will make Saudi Arabia more competitive in global supply chains and better able to serve both domestic markets and exports. While specific future locations have not been confirmed in public disclosures, they are expected to align with major economic and industrial clusters across the Kingdom.

ASMO’s expansion aligns closely with the Kingdom’s broader logistics ambitions. Saudi Arabia has invested heavily in transport and logistics infrastructure - including ports, rail, and air cargo capacity - as part of Vision 2030’s goal to transform the country into a global logistics hub connecting Asia, Europe, and Africa.

Recent industry data shows that private sector investment in the nation’s transport and logistics sector has reached tens of billions of dollars, with logistics centers now numbering close to 30 nationwide.

In addition to physical infrastructure, ASMO plans to leverage digital technologies - such as data analytics and real-time tracking - to optimize inventory management and streamline supply-chain operations. These capabilities, combined with DHL’s global logistics expertise and Aramco’s deep industrial demand, aim to strengthen resilience and reduce supply-chain bottlenecks for energy, chemicals, and manufacturing sectors.

Executives from both partners have emphasized that the expanded logistics network will support localization of services, bolster local suppliers and small-to-medium enterprises, and create broader economic impact within Saudi Arabia.

As facilities come online over the coming years, ASMO expects to play a central role in reshaping how industrial supply chains operate domestically and across the wider Middle East.

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