SAL pens deal with Dammam Airports to lease, renovate KFIA’s cargo terminal

Logo of SAL Saudi Logistics Co.

SAL Saudi Logistics Co. signed a 20-year lease agreement with Dammam Airports Co. (DACO) to renovate, operate, and maintain the cargo terminal at King Fahad International Airport (KFIA) in Dammam.

In a statement to Tadawul, the company said that the transaction is valued at SAR 16.5 million annually or 5% of the annual gross revenues, whichever is higher.

Under the agreement, SAL will be committed to renovating the terminal by investing SAR 100 million. 

The lease agreement’s tenor begins retroactively on March 1, 2022, and ends on Feb. 28, 2042, the statement added. 

The agreement results in a reduction of lease costs by SAR 13.82 million per year over the 20-year lease period, with a commitment to invest SAR 100 million in three phases over a period of 10 years from 2024 to 2033. 

No related parties are included in the transaction, SAL noted.