Riyadh, Saudi Arabia — SAL cargo services contract expanded as Saudi Logistics Services Company (SAL) signed a three-year addendum with Saudi Ground Services (SGS). Effective retroactively from January 1, 2025, the deal covers apron and cargo aircraft support.
SAL Cargo Services Contract Expanded — SAR 16M Deal Through 2027
SAL finalized the addendum on July 21, 2025. It builds on an existing agreement with SGS for ramp handling of cargo aircraft. The updated deal includes aircraft cleaning and water-supply services. Charges will remain demand-linked and in line with contract terms. The estimated cost is SAR 16 million annually through December 31, 2027.
Why It Matters
- Revenue stability: The agreement secures a recurring SAR 16 million annual income, helping SAL maintain consistent revenue.
- Operational continuity: SAL has continued offering established services since 2022, which ensures steady cash flow.
- Forecast clarity: The fixed cost structure improves visibility and supports margin projections in a competitive sector.
- Strong compliance: SAL disclosed the retroactive deal via Tadawul, reinforcing governance and transparency.
THE SAUDI STANDARD’S VIEW: SAL-SGS Agreement Expansion Reinforces Logistics Integration and Aviation Readiness
The SAL cargo services contract extension through a SAR 16 million annual addendum marks a strategic move toward deeper logistics integration. As Saudi Arabia pushes to become a top air cargo hub, such agreements are key to achieving aviation efficiency and readiness.
- Ground service integration boosts efficiency: SAL enhances cargo handling across Saudi airports by continuing apron services like cleaning and water supply. This end-to-end approach is vital to supporting Vision 2030’s logistics goals.
- Stable contracts support sector growth. The three-year term ensures predictable costs and uninterrupted service. This kind of long-term planning reflects the growing maturity of the Saudi logistics industry.
- Alignment with national aviation targets: The deal supports Vision 2030’s NIDLP and the Saudi Aviation Strategy, which aims to boost air cargo capacity to 4.5 million tonnes by 2030.
- Public accountability upheld: as a listed firm, SAL reinforced its IPO commitments by disclosing the agreement in full. This builds investor trust and showcases responsible financial governance.
The expanded SAL cargo services contract with SGS signals more than business continuity. It reflects the Kingdom’s broader logistics transformation—one that is grounded in integration, transparency, and long-term planning. With such moves, Saudi Arabia is steadily positioning itself at the forefront of regional air freight.
Related Reading
• Discover Saudi aviation logistics contract trends and ground-handling developments
