SAL signs SAR 458M deal to develop cargo facilities at King Khalid Airport

SAL Saudi Logistics Services Co. (SAL) signed on May 21 a binding agreement with Riyadh Airports Co. (RAC) to lease and develop air cargo facilities in the Cargo Village at King Khalid International Airport (KKIA) in Riyadh.

According to a statement to Tadawul, the agreement includes leasing and developing an area of 90,000 square meters at the air cargo facilities for 20 years.

The company noted rental expenses of SAR 458 million over the period of the agreement or a revenue share (ranging from 4% up to 6.5% over the period of the agreement), whichever is higher.

SAL is committed to the development, restoration, and maintenance of the leased area, the statement added.

The statement pointed out that the agreement is likely to reduce rental costs by up to SAR 500 million over the lease period, with an expected investment value of SAR 350 million.