The cargo terminal at King Fahd International Airport (KFIA) will get an SAR 100 mn overhaul after SAL Saudi Logistics renegotiated its contract to run the Dammam Airports (DACO)-owned facility, according to a statement to Tadawul.

How it will work: SAL is committing to a three-phase, SAR 100 mn renovation and upgrade of the Dammam cargo terminal from now through 2033. The operator will get in return an SAR 13.8 mn break on rent over 20 years, saving it SAR 276 mn. The agreement spares Dammam Airports the need to go line up SAR 100 mn in new financing — and will see SAL entitled to an annual payment from Dammam Airports of SAR 16.5 mn or 5% of the terminal’s annual gross revenues, whichever is higher.

The agreement runs through February 2042 and is retroactive to 3 January 2022. Work on the upgrade should begin in 2024.

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