In 2023, daa International took a leading role in transforming cargo operations at King Abdulaziz International Airport (KAIA) in Jeddah, Saudi Arabia. Faced with mature infrastructure, fragmented governance, and ambitious national cargo targets, daa International stabilised cargo volumes, mentored the next generation of Jedco leaders, and laid the foundation for long-term growth. 

This initiative positions KAIA as a future regional logistics powerhouse, enabling the airport to meet national goals and capitalize on growing e-commerce and trade demand. 

A Strategic Gateway to Global Trade 

Client Background 
When daa International began its engagement, KAIA’s cargo throughput had declined to 289,000 tonnes annually due to COVID-19. By the end of 2023, volumes rebounded to 340,000 tonnes, and in 2024 surged 33% to 419,000 tonnes. 

While market forces contributed to this growth, daa International’s strategic positioning enabled the airport to absorb and capitalize on the surge. KAIA’s proximity to 80% of the world’s economies within six hours makes it ideally placed to become a major logistics hub, supporting both commercial and humanitarian operations. 

Breaking Barriers, Unlocking Capacity 

Key Challenges 

  • Mature cargo infrastructure with max capacity ~400,000 tonnes  
  • Dominant operator (SAL) operating at full capacity  
  • Expansion delayed due to bureaucratic hurdles and asset ownership disputes (GACA, MATARAT, Jedco)  
  • No cohesive cargo strategy to meet the 2.5 million tonne national target by 2030  
  • Basic utilities and some facilities underpowered or outdated  

daa International was tasked with leading strategic, structural, and operational transformation. 

Steering the Cargo Transformation 

Our Approach 

  • Assessed operational environment and identified critical gaps  
  • Developed a comprehensive cargo strategy aligned with the National Aviation Strategy  
  • Established structured escalation and communication frameworks to overcome bureaucracy  
  • Formed asset committees to resolve ownership and demolition issues  
  • Created a functional master plan to guide infrastructure expansion and attract investment  
  • Engaged cross-functional stakeholders across Jedco, SAL, and MATARAT  

Cross-functional collaboration enabled the airport to break silos, accelerate decision-making, and align operations with airline and cargo operator needs. 

From Vision to Reality 

The Results 

  • Delivered a functional master plan enabling KAIA to attract developers via RFPs  
  • Laid the foundation for a new Cargo City, modelled on successful hubs in Doha and Dubai  
  • Leveraged Jeddah’s geographic advantage as a transhipment hub connecting Africa, Asia, and Europe  
  • Optimised routes for perishable goods and humanitarian logistics, improving profitability and efficiency  

Highlight: Strategic planning, stakeholder engagement, and operational leadership delivered measurable impact while preparing KAIA for long-term growth. 

Insights from the Journey 

Lessons Learned 

  • Navigating Saudi Arabia’s hierarchical decision-making requires strong relationships and advocacy  
  • Infrastructure is critical for economic growth; cargo is an economic engine  
  • Early identification of gaps allowed prioritization of investments and alignment of stakeholders  

Building the Regional Logistics Hub 

Next Steps 

  • Attract Tier 2 developers with landside access to bring global logistics players (e.g., DHL, DB Schenker, Kuehne + Nagel)  
  • Accelerate cargo volume growth through infrastructure expansion and integrated operations  
  • Transform Jeddah into a regional logistics leader supporting commercial and humanitarian freight  
  • Continue guiding KAIA to meet its 2030 cargo targets  

“By aligning strategy, operations, and stakeholders, we turned a complex challenge into a growth opportunity, positioning KAIA to become a leading logistics hub in the region.” 
— Angus Walsh, Head of Cargo, daa International 

To top