Partners with Hutchison Ports to develop dry port and logistics zone
The King Salman Energy Park (SPARK) has completed 60% of its first phase which consists of infrastructure, roads, utilities, and real estate assets established across 14 square kilometers, in addition to a dedicated three-square kilometer logistics zone and dry port.
SPARK has signed an MoU with Hutchinson Ports to create a joint venture company to manage and operate the dry port and logistics zone.
A total of 6 billion Saudi Riyals was invested in the first phase of this mega project, which is set to be completed in 2021.
Upon completion, the project will add 22 billion Saudi Riyals annually to the Kingdom’s gross domestic product by 2035, while creating thousands of new highly skilled job opportunities.
Commenting on this milestone, Chairman of the King Salman Energy Park, Dr. Mohammed Yahya Al-Qahtani said: “Achieving this feat strongly reflects our commitment to implement this unique project that is designed for the betterment of our community."
Fifteen major energy companies have already signed agreements to invest in SPARK, and another fifteen companies are currently in the pipeline.
It is forecasted that foreign direct investment in SPARK will exceed $2 billion in the next two years, once these investors finalize the construction of their facilities.
Once completed, SPARK’s investors and neighboring regional hubs will be able to benefit from world class logistics infrastructure and enhanced global reach.
In April of 2019, Schlumberger commenced work on a 46 million US Dollar facility which will produce drilling solutions for the regional energy industry, as a result adding 260 jobs to the workforce.
Yokogawa, another anchor investor in SPARK, is in the final stages of construction work on its new high-tech equipment center.
The Oilfields Supply Company Saudi (OSC) is also currently building an oil and gas industry user supply base with the latest specifications, along with a range of integrated services and logistical solutions.
Other investors, including Baker Hughes, Halliburton, Al-Rushaid Group and Sawafi-Borets are in various stages of development, ranging from facilities design to appointing building contractors.
SPARK is strategically located in the eastern region of the Kingdom between Dammam and Al-Ahsa.
SPARK’s readily available industrial project sites offer high-quality infrastructure which include internal road networks, an advanced network of electrical power, water, natural gas, sanitation systems, rainwater drainage and the most modern communication network in the Kingdom.
To ensure the highest quality facilities management, SPARK appointed ENGIE Cofely to provide administrative services and maintenance to SPARK tenants.
ENGIE Cofely will also be providing a Facilities Management training program specifically designed for SPARK’s employees.