26/10/2026 05:19 AST
Saudi Arabia's air cargo sector is increasingly turning to artificial intelligence and automation to improve efficiency, reduce waiting times and strengthen connectivity across the logistics network, a senior SAL Logistics Services executive told Arab News.
Simon Hassannia, chief digital officer at the firm, said the company is working to become a hub connecting airlines, customs authorities, transport companies and customers across the Kingdom.
The company's wider digital transformation program has already optimized more than 300,000 working hours annually by eliminating repetitive tasks and manual processes.
Another major development is CargoGate, SAL's digital gateway which was launched at LEAP 2026 in collaboration with Elm, which combines booking, online verification, payments and shipment information into a single platform.
"Our digital strategy is simple: make SAL the digital hub connecting the Kingdom's air cargo ecosystem," Hassannia said.
He highlighted that the transformation goes beyond improving SAL's internal operations, with a broader focus on making cargo movement faster and more predictable.
"The goal is clear: make cargo move faster by making information move faster," he added.
Digital transformation
Central to this strategy is SAL's Smart Station program, which is digitizing cargo handling from aircraft arrival to customer collection through real-time shipment visibility, automated processes, paperless warehouse operations and advanced planning tools.
Hassannia noted that the initiative is designed to reduce manual work for employees while giving customers greater visibility over shipments and collection schedules.
Since its introduction, CargoGate has processed more than 200,000 online bookings, achieved a 92 percent customer adoption rate and registered more than 12,000 drivers and trucks combined.
Hassannia explained that the platform allows operational teams to prepare shipments before customers arrive, reducing unnecessary station visits, congestion and collection delays.
"When we know earlier who is coming, when they are coming and which shipment is needed, our operation can prepare the cargo in advance," he said.
He emphasized that the adoption rate reflects customers incorporating the platform into their regular operations rather than merely completing transactions digitally.
"Going digital is not the success. Making the customer's life easier is the success," Hassannia said.
He added that advanced forecasting has improved visibility over expected delivery times, helping SAL reduce waiting periods, although he did not provide specific figures.
CargoGate is also becoming an entry point for additional digital services from SAL and selected partners, extending its role beyond shipment collection.
AI operations
SAL is also expanding its use of AI to support operational planning and resource allocation.
The company signed a memorandum of understanding with Microsoft Arabia at LEAP 2026 to explore cooperation in AI, cloud technologies, data analytics and digital logistics solutions.
The agreement also covers potential applications aimed at improving customer experience, operational efficiency and sustainability.
Hassannia highlighted that Microsoft forms part of SAL's broader technology ecosystem, alongside Elm and specialized AI partners.
One of the company's next developments is its Smart Operations Platform, designed to bring operational information together and help teams identify priority tasks and determine where personnel and equipment are needed.
The platform aims to answer three operational questions in real time: which tasks should take priority, where workers are needed and where equipment should be deployed.
"People remain responsible for the decisions. Technology helps them see the situation earlier and act faster," he said.
He added that AI should improve the customer experience without requiring customers to interact directly with the underlying technology.
"For the customer, the AI should be invisible. They should simply experience better service," Hassannia said.
SAL has also signed a memorandum of understanding with Huawei Tech Investment Saudi Arabia to explore the use of 5G, AI, cloud computing and green energy technologies in logistics operations.
The partnership includes potential digital solutions for logistics zones and the possibility of establishing an inventory and distribution hub supporting Huawei's Saudi operations.
Connected ecosystem
Hassannia highlighted that Saudi Arabia's substantial investments in airports, logistics infrastructure and capacity have created opportunities to improve connectivity between existing assets.
He explained that shipments often pass through multiple organizations, making timely information exchange essential even when individual operators perform efficiently.
SAL is strengthening real-time data connections with airlines, the General Authority of Civil Aviation, the Zakat, Tax and Customs Authority and customers to replace manual coordination and improve data accuracy.
"The next competitive advantage in logistics will be how well the whole ecosystem works together," he said.
Hassannia noted that customers are ultimately concerned with when their cargo will be available rather than which organization manages each stage of the shipment.
Future outlook
Over the next three to five years, Hassannia expects air cargo technology to evolve from providing shipment visibility toward predicting operational requirements before aircraft arrive.
This would allow operators to anticipate warehouse workloads, identify potential bottlenecks and allocate personnel and equipment more effectively.
The digital expansion comes alongside SAL's financial growth. The company reported net profit of SR347.99 million ($92.8 million) in the first half of 2026, up 10.35 percent year on year, supported by a 23.12 percent increase in revenue to SR957.92 million.
In August, SAL completed its approximately SR120 million acquisition of Belgium-based Aviapartner Liege, marking its first operational expansion outside Saudi Arabia and expanding its network to 20 stations.
Hassannia said the company also sees opportunities to turn its digital capabilities into additional services for customers and partners, creating new avenues for growth.
Its longer-term strategy focuses on integrating Smart Station, CargoGate and Smart Operations as Saudi Arabia advances its ambitions to become a global logistics hub under Vision 2030.
Arab News
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