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SATS unit wins 25-year cargo terminal concession in Saudi Arabia
SATS Saudi Arabia Company, a unit of gateway services provider SATS, has won a 25-year cargo terminal concession in King Khalid International Airport (KKIA) in Riyadh, Saudi Arabia.
Construction of the SATS Cargo Terminal in KKIA will take place over two phases, with the first phase expected to be completed in mid-2022, the Mainboard-listed company announced in a bourse filing on Monday.
Upon completion, the terminal will be able to handle up to 600,000 tonnes of cargo annually. There will also be a purpose-built cold-chain facility for the special handling of temperature-sensitive perishables and a dedicated lane for pharmaceutical products.
The Riyadh cargo terminal will be the second cargo operation in Saudi Arabia for SATS, after its first win in King Fahd International Airport in 2016.
KKIA handles close to 40 per cent of air cargo volume in Saudi Arabia, Alex Hungate, president and chief executive of SATS, noted in a press release.
"Connected to our stations in Dammam and Oman, and our extensive Asian network, KKIA will extend SATS' network of quality cargo corridors to offer our customers greater connectivity and quality assurance, while supporting Saudi Arabia's rapidly-growing cargo market and logistics infrastructure," he added.
SATS shares closed at S$5.09 on Monday, down 0.2 per cent.