Construction is set to begin on the second phase of the cargo ground handling station at King Abdulaziz International Airport during the first quarter of 2026, according to SAL Saudi Logistics Services Company (SAL).

The construction contract, valued at 233 million Saudi riyals ($62.13 million), was awarded to Riyadh-based Contracting and Construction Enterprises Company (CCE), SAL said in a statement to the Saudi stock exchange.

The work scope includes new construction, modifications to existing structures, and ancillary facilities and utilities.

The contract is part of SAL's strategy to boost efficiency and reliability of its services by developing its facilities to increase the operational capacity and meet current and future operational requirements.

The project will be financed through Sharia-compliant bank facilities, cash at hand, and other available financing programmes.

Construction will be completed during the third quarter of 2028, with operations expected to commence in the same quarter, subject to regulatory approvals, the statement said.

(Writing by P Deol; Editing by Anoop Menon)

(anoop.menon@lseg.com)

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