SAL CEO: Liège acquisition may increase cargo handling by up to 35%

Omar Hariri, CEO of SAL Saudi Logistics Services, said the acquisition of Aviapartner Liège SA could add between 250,000 and 450,000 tons to cargo handling volumes from 2027 to 2031. This represents a potential increase of between 15% and 35% in cargo volumes linked to the company’s customer network.

In an interview with Argaam, Hariri said the transaction is limited to acquiring this subsidiary that manages airport operations, which was previously owned by Aviapartner Holding NV.

He explained that the deal, valued at €28 million, will be fully financed from the company’s available cash without resorting to borrowing, stressing that SAL’s financial position enables it to execute such investments while maintaining a strong balance sheet.

Hariri added that the acquisition will provide SAL with an operational foothold at one of Europe’s key air cargo hubs, noting that the acquired business includes existing air cargo ground-handling operations at Liege Airport. This includes ready operational infrastructure, workforce, and existing relationships with airlines and customers.

He indicated that Liege Airport was selected due to its position as a major air cargo hub in Europe, being the largest cargo airport in Belgium and one of the most prominent European airports. It also serves a large number of global cargo and e-commerce companies.

Hariri noted that the airport’s geographic location in the heart of Europe enables access to about 70% of European markets within two to five hours, making it a key hub for cargo flows between Europe, the Middle East, and Asia. It is also one of the main stations for operations of Saudia Cargo.

Cargo volumes handled through Liege Airport, according to the CEO, exceeded one million tons in 2024, a growth of about 15% compared to 2023, with the airport’s capacity expected to rise to more than two million tons by 2040.

Hariri explained that SAL maintains long-term relationships with a large number of airlines and global carriers, expecting the acquisition to help expand the company’s customer base by adding companies that use Liege Airport as a main or regional hub for their operations.

He also said the airport is a key destination for cargo and e-commerce companies, as e-commerce shipments are expected to account for around 33% of global air cargo by 2030, further enhancing the importance of specialized logistics hubs such as Liege Airport.

This move comes as part of the company’s strategy for selective international expansion and diversification of revenue sources, in addition to strengthening its ability to serve customers through a broader logistics network across global hubs.

In the coming period, SAL will assess the possibility of offering additional value-added services in the European market in line with its operational capabilities and customer needs, while continuing to focus on investment in logistics infrastructure within Saudi Arabia.

The completion of the transaction remains subject to relevant regulatory approvals, with the official closing to be announced once all necessary procedures are completed, the CEO said.

He further noted that the company has reviewed the legal, regulatory, and tax aspects related to the deal, indicating that its size and structure do not require notification to the European Commission or fall under merger control or foreign direct investment screening procedures in Belgium.

The transaction does not fall within the scope of the global minimum tax rules, Hariri said, confirming that there are no regulatory obstacles that could affect its completion.