meed-logo

line1 line2 line3
SIGN IN / REGISTER

Aramco and DHL form joint logistics company

8 February 2024

Register for MEED's guest programme 

Supply chains have become a key issue for businesses over the past three years as the global economy emerged from Covid-19 lockdowns and then faced disruptive events such as the grounding of the EverGiven in the Suez Canal and the war in Ukraine.

More recently, Houthi attacks on shipping passing through the Red Sea have forced many vessels to travel around Africa rather than through the Suez Canal. This has delayed deliveries and driven up costs.

These disruptions, together with technological advances such as AI and a growing emphasis on sustainability, are forcing logistics providers and their customers to rethink how their supply chains are managed.

Locally in Saudi Arabia, the supply chain challenge is of particular importance as the kingdom seeks to overhaul its economy with large-scale capital expenditure projects as part of Vision 2030.

Joint venture

Two of the world’s largest players in their respective fields, Saudi Aramco and DHL Supply Chain, are responding to these challenges and aim to revolutionise logistics for the energy, chemical and industrial sectors by joining forces to incorporate a new joint venture company known as Asmo.

Salem Al Huraish, chairman of Asmo, described the new company in a speech at its launch in Khobar on 5 February as “a national champion that will reform the supply chain industry for the energy, chemical and industrial sector in the region.”

The company involves two industry heavyweights combining their expertise. “Aramco is a massive procurement beast, and is very successful. DHL is a logistics company. Everybody does their respective pieces separately,” said Craig Roberts, CEO of Asmo.

“Bringing the two together in a separate entity is something that hasn’t been done before. We believe there are massive efficiencies for the industry from doing this.”

The company, which has been planned for three years, comes at an opportune time for Aramco and DHL, but also for Saudi Arabia and the global logistics sector.

“We are launching a company with an ambitious vision to become a market leader in the Mena region,” said Wail Al Jaafari, Aramco executive vice-president of technical services.

“Asmo can offer world-class end-to-end supply chain solutions, creating value for customers while enhancing the resilience of their supply chain.”

New technologies

As well as changes in Saudi Arabia, the nature of the logistics industry is being transformed by new technologies, notably artificial intelligence (AI).

“We stand at a defining junction of the logistics industry where global trends are dramatically reshaping the landscape,” said Oscar de Bok, CEO of DHL Supply Chain. “The world is grappling with supply chain disruption, rising costs and the urgent goal for sustainability.”

Asmo intends to take a smart approach to revolutionising supply chain logistics. “It’s a lot about being smart,” said De Bok. “We talk a lot about deploying technology, digital marketplaces and warehouse technology … there is a lot of cool stuff being deployed, but it is not always rocket science. Some of it is pretty basic stuff you need to do,” he said.

The journey for Asmo is just beginning. It is a long-term venture that aims to develop a significant presence in the kingdom over the coming years.

“We are in partnership together and at the start of that journey right now,” Roberts added. “We are looking at our supply chains, gaining insights and asking how we get smarter. When we build in new warehouses, the question is, where do you put them? What technology do we deploy? We are in that discovery phase right now.”

One of the critical aspects of Asmo’s strategy involves assessing physical infrastructure needs. “For physical infrastructure, Asmo is assessing its options. We are looking at that right now. Aramco has a number of facilities for itself and its affiliates. We are looking at the best places to put the warehouses,” Roberts said.

Saudi infrastructure

As well as Asmo’s dedicated infrastructure, the Saudi government is also building infrastructure to support the kingdom’s logistics industry. “They’re putting infrastructure in place. They’re making it quite easy for us to do this. I think the support of the government is vital,” he said. 

Once established in the kingdom, Asmo aims to take its operations overseas. This is likely to involve expanding into other GCC markets first and then further afield. Both Aramco and DHL can support this strategy as both companies have significant operations outside Saudi Arabia. DHL is a global logistics player, and Aramco, while primarily being a Saudi company, has operations in many other markets worldwide, including the US.

If Asmo gets it right, the rewards are significant. “The supply chain and logistics market in the Mena region is worth around $100bn. Our goal is to have a major share of this. It is truly a new giant in the making,” said Al Jaafari.

https://image.digitalinsightresearch.in/uploads/NewsArticle/11500762/main.jpeg
Colin Foreman

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Contractor wins $197m Doha infrastructure works

    6 November 2026

     

    Register for MEED’s 14-day trial access 

    Qatar’s Public Works Authority (Ashghal) has awarded an estimated QR722m ($197m) contract to develop roads and infrastructure north of Al-Rifaa Street in Doha.

    The contract was awarded to local firm Tadmur Contracting Company.

    Six other contractors submitted bids: 

    • Qatar Trading & Contracting Group ($244m)
    • Iris Construction Tourism Industry & Trade ($259m)
    • Lotus Trading & Contracting ($260m)
    • Generic Engineering Technologies & Contracting ($261m)
    • Alghanim International / National Industrial Contracting ($268m)
    • Hamad Bin Khalid Contracting Company ($281m)

    The scope of work covers the construction of more than 34 kilometres of roads, dedicated plot developments, site clearance, backfill and earthworks.

    The package also requires the installation of surface and groundwater drainage systems, a foul-water drainage network and treated sewage effluent lines.

    In addition, the contractor will deliver a dedicated pumping station, an emergency flood area pond, 3,735 car parking spaces, road cross-sectional elements and verge parking bays.

    Secondary infrastructure works include electrical distribution, water mains, utility lines, manholes, gully pots and house connections, along with kerbing, road pavement works, landscaping, street lighting, road markings and directional signage.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/21204827/main.jpg
    Yasir Iqbal
  • Stakeholders aim to sign Iraq pipeline deal by year end

    6 November 2026

     

    Stakeholders expect a key contract to be signed before the end of the year for the development of a major oil export pipeline network in Iraq, according to industry sources.

    Iraq and Syria’s governments, state-owned oil companies and a consortium led by Qatar’s UCC are currently discussing the terms.

    If all parties agree to the proposed deal, the UCC-led coalition will become the selected developer responsible for tendering engineering, procurement and construction (EPC) contracts for the project.

    The consortium includes US-based Chevron, the investment company TI Capital and France’s TotalEnergies.

    The proposed plan will use a fast-track framework to bring the pipelines online as quickly as possible.

    One source said: “The plan that is being discussed is highly unusual, because it is such a large-scale pipeline project and it would be brought online in a relatively short timeframe.”

    A team from UCC is currently in Iraq for meetings with government officials to discuss the project, one source said.

    The project will be focused on four pipeline packages:

    • Basra to Najaf
    • Najaf to Haditha
    • Haditha to Fish Khapour
    • Haditha to Banias Port in Syria

    In July, Iraq’s cabinet approved state-owned Basra Oil Company signing a ​heads of agreement and a non-disclosure agreement with the UCC-led consortium to explore possible future oil pipeline projects.

    Under the terms of the agreement, the consortium is preparing technical and financial feasibility studies for strategic export pipeline projects.

    Also in July, US-based KBR was awarded a consultancy contract for the section of pipeline due to extend from Basra to Haditha.

    In April, Iraq announced the allocation of $1.5bn for the Basra-Haditha route, while the larger scheme is estimated at around $5bn.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/21181262/main.jpg
    Wil Crisp
  • Taqa shortlists 17 contractors for Mirfa-Liwa scheme

    6 November 2026

     

    Up to 17 contractors have been invited to submit bids for a major water transmission and distribution scheme serving Mirfa, Madinat Zayed and Liwa in Abu Dhabi, a source close to the project has confirmed to MEED.

    The project, originally estimated to cost $775m, comprises a water transmission system from Mirfa, alongside distribution networks serving farms and settlements in Abu Dhabi’s western region.

    In October, MEED exclusively reported that a request for proposals had been issued, with bids due on 5 January 2027, following an extension from the initial deadline of 11 November 2026.

    The Mirfa-Liwa scheme has been in procurement for several years and was previously tendered in December 2024 as an engineering, procurement and construction scheme, divided between transmission and distribution works.

    As MEED understands, it was recently re-tendered under a design, build and operate model, extending the contractor’s responsibilities to operating the infrastructure after construction.

    According to sources, the full list of contractors invited to bid for the tender includes:

    • Afcons Infrastructure (India)
    • Alkhorayef Water & Power Technologies (Saudi Arabia)
    • China Machinery Engineering Corporation (China)
    • China National Chemical Engineering (China)
    • China Tiesiju Civil Engineering Group (China)
    • Danway Electrical & Mechanical Engineering (UAE)
    • Emarat Aloula Contracting (UAE)
    • FCC Aqualia (Spain)
    • Gulf Contractors Company (UAE)
    • Hydropower Energy & General Construction (UAE)
    • Jereh Oil & Gas Engineering Corporation (China)
    • Mapa (Turkiye)
    • Nesma & Partners Contracting Company (Saudi Arabia)
    • Orascom Construction (Egypt)
    • Power Construction Corporation of China (China)
    • Tecton Engineering & Construction (UAE)
    • Tristar Engineering & Construction (UAE)

    According to details seen by MEED, the scope includes a pumping station at Mirfa with a capacity of 128 million imperial gallons a day, approximately 125 kilometres of transmission pipelines to Muzairah, with branches to Madinat Zayed and Liwa Summit, and storage tanks at the three locations.

    The distribution network is divided into four geographic clusters covering Liwa East, Liwa West, Madinat Zayed and Seih Al-Kheir. The works include associated pipelines, pumping stations and storage facilities.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/21181223/main.jpg
    Mark Dowdall
  • Gulf conflict cuts Emirates Group profit by 66%

    6 November 2026

    Register for MEED’s 14-day trial access 

    Dubai’s Emirates Group made a profit before tax of AED4.1bn ($1.1bn) in the first half of its 2026-27 financial year, 66% less than the AED12.2bn it made in the same period last year.

    The six months to 30 September were the group’s first full half-year since military activity disrupted commercial air traffic across the Gulf on 28 February. Group revenue fell 12% to AED66.2bn ($18bn), from AED75.4bn a year earlier. Profit after tax fell 66% to AED3.6bn ($1bn).

    Earnings before interest, tax, depreciation and amortisation (Ebitda) fell 41% to AED12.5bn ($3.4bn).

    The results follow a record 2025-26 financial year. The group made a profit before tax of AED24.4bn in that year, on revenue of AED150.5bn.

    “It has been a demanding six months, and once again our business model and our people stood up to the test,” said Sheikh Ahmed Bin Saeed Al-Maktoum, chairman and chief executive of Emirates Airline and Group. “Customer demand held firm and our cargo operations made a strong contribution, keeping revenue and cash levels healthy even as global jet fuel prices doubled against the same period last year.”

    Airline performance

    Emirates airline’s profit before tax fell 68% to AED3.7bn ($1bn), compared with AED11.4bn a year earlier. Its revenue fell 13% to AED56.9bn ($15.5bn). The airline carried 21.8 million passengers, 22% fewer than a year earlier. Capacity measured in available seat kilometres fell 17%, and the passenger seat factor dropped to 72% from 79.5%.

    Cargo partly offset the drop in passenger numbers. Emirates SkyCargo carried 1.2 million tonnes, 1% less than a year earlier, but its revenue rose 52%. The conflict reduced the airfreight capacity available on the market, and disruption to shipping pushed shippers towards air transport.

    Before hedging gains, fuel costs rose 60%, even though the airline uplifted 12% less fuel. Gains of AED7.1bn ($1.9bn) from fuel hedging cut the net increase in fuel costs to 13%. Fuel accounted for 34% of operating costs.

    On 30 September, Emirates was operating 91% of its pre-disruption network, serving 150 airports in 78 countries and territories. On 31 March, it had been flying 58% of its passenger capacity to 122 destinations in 65 countries.

    Fleet investment

    The airline received nine Airbus A350s and five Boeing 777 freighters during the period. Its fleet grew to 289 aircraft, from 277 on 31 March. Emirates is continuing its cabin retrofit programme, a planned investment of more than $7bn. It refurbished 12 aircraft in the first half. In May, it broke ground on a $5.1bn engineering and maintenance, repair and overhaul (MRO) facility at Al-Maktoum International airport, which is expected to be completed in the mid-2030s.

    The group’s cash position was AED54.1bn ($14.7bn) on 30 September, down from a record AED59.6bn on 31 March. The group said it had used its reserves to make pre-delivery payments for aircraft and to service existing debt. It also paid the remaining AED2bn of the AED3.5bn dividend declared for 2025-26 to its owner, the Investment Corporation of Dubai.

    Ground services and travel company dnata made a profit before tax of AED410m ($112m), down 51%. Its revenue fell 7% to AED11bn ($3bn), and the group said dnata’s international businesses helped offset weaker traffic in the UAE.

    The group’s workforce fell 2% to 128,237 people.

    “We enter the second half of our 2026-27 financial year with measured optimism,” said Sheikh Ahmed.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/21198114/main.jpg
    Colin Foreman
  • King Salman airport tenders roads and utilities package

    6 November 2026

     

    Register for MEED’s 14-day trial access 

    Saudi Arabia’s King Salman International Airport Development Company (KSIADC) has tendered the Zone C1+C2 roads, bridges and utility networks package for King Salman International airport (KSIA) in Riyadh.

    The tender was issued on 26 October, and bids are due by 6 December.

    The request for proposals covers the procurement, construction, testing and commissioning of civil infrastructure supporting Terminal 6, alongside the existing Terminals 1-5.

    The scope includes upgrades to Airport Road 539, which runs west of Terminals 1-5, and to part of Mohamed Bin Faraj Road 5333, west of Junction 6.

    It also includes new roads, ramps, service roads, and signalised at-grade junctions. An additional access road will connect the Terminal 6 site offices to Road 5333.

    Structures will include the Junction 6 and Terminal 6 bridges, retaining walls and reinforced-soil structures.

    The contractor will also construct the central ground services equipment (GSE) bridge. Before construction begins, the contractor must validate the design, complete any outstanding elements – including mechanically stabilised earth walls, approach slabs, drainage and lighting – and secure the required authority approvals.

    Dry utilities will comprise high- and extra-high-voltage containment, a 13.8kV medium-voltage network with package substations, low-voltage distribution and street lighting, and security-surveillance systems.

    Wet utilities will include potable water, fire water, irrigation water, treated sewage effluent, district cooling and wastewater networks. Wastewater pipes will range from 200mm u-PVC gravity lines to 1,700mm glass-reinforced plastic mains.

    The stormwater network will include channels, culverts, ponds and pipes ranging from 400mm to 1,400mm in diameter. Crossings will be constructed using open-cut excavation, horizontal directional drilling or microtunneling.

    Utilities serving the operational terminals will be diverted on a design-and-build basis. Enabling works will include earthworks and the relocation of the security fence and trees. The contractor will also demolish a temporary car park, existing bridges and a sewage pumping station.

    Optional works comprise two design-and-build elements that will proceed only at the client’s instruction.

    The first is the south GSE bridge. The second is an approximately 1,400-metre, multi-lane access road to the Terminal 6 Transportation Hub, including bridges, underpasses, ramps and tunnels, as well as provisions for future Wadi Loop utilities and structures.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/21176175/main.png
    Yasir Iqbal