Saudi Arabia’s General Authority of Civil Aviation (Gaca) expects to award the second cargo handling contract at the King Khalid International airport in Riyadh within two weeks, according to a source familiar with the transaction.

Gaca received bids for the contract in July.

MEED understands the bidders include foreign joint stock companies and international air cargo handling companies.

The appointment of a second air cargo operator at the kingdom’s second-busiest airport is part of a broader plan to privatise Saudi Arabia’s airport services and improve operational efficiencies.

Saudia Cargo, a subsidiary of the national carrier, currently provides cargo handling services at the airport.

Future plans for the Riyadh airport include the construction of a cargo village that will provide “world class” logistics services.

The airport handled 354,335 tonnes of cargo in 2016, an increase of 8 per cent over the previous year. It processed 23.7 million passengers in 2016, up from 22.5 million in 2015.

The $2.1bn renovation works for Riyadh airport’s four terminals and airside utilities is expected to commence in September.

A team of Turkey’s IC Ictas and local Al-Rashid Trading & Contracting won the renovation contract earlier this year, following the cancellation last year of an earlier contract awarded to a team led by Germany’s Hochtief.

A sixth terminal is to be developed using a public-private partnership contract model once the redevelopment work on the four terminals has progressed.