ASMO, a new joint venture between DHL and Saudi Aramco, has officially commenced operations at the Central Pipe Yard located near Abqaiq.
The launch marks a significant milestone in the collaboration, aimed at enhancing logistics and supply chain capabilities in the region.
The Saudi Aramco-owned facility spans an area of five million square meters and is considered one of the largest logistics service centers in the world for pipe products used in oil and gas production.
The Central Pipe Yard supports Saudi Aramco’s operations across exploration and production, refining, chemicals and marketing, and industrial projects by storing and distributing oil and gas pipe products used in drilling and production activities.
Through managing this facility, ASMO seeks to raise service levels, facilitate material flow, enhance transparency in inventory monitoring, and ensure efficient delivery operations within Saudi Aramco’s supply chains.
Expanding ASMO’s Role in Saudi Arabia’s Logistics Network
Earlier this year, ASMO took over the management of Saudi Aramco’s storage facilities in Riyadh and Jazan, with the Central Pipe Yard now becoming the third facility under its operational oversight.
This expansion strengthens ASMO’s role as a key component in Saudi Aramco’s supply chain network, forming a central pillar of a national framework designed to support the long-term transformation of the Kingdom’s logistics infrastructure. The initiative also aligns with Saudi Vision 2030, which seeks to establish Saudi Arabia as a global logistics hub.
By 2030, the JV plans to operate six strategically located logistics facilities in the Kingdom, three of which are Saudi Aramco facilities currently managed by ASMO, alongside three new advanced facilities to be built as part of its long-term expansion plan.
With an expected total storage capacity exceeding eight million square meters and annual procurement volumes projected to surpass $8 billion, ASMO is developing world-class local infrastructure that will help shape the future of supply chains in the Kingdom and the region, as per the statement.
