The General Transport Authority allows exceptional freight transport contracts

Introduction: Exceptional decisions to support the logistics sector

The Public Transport Authority in Saudi Arabia has announced a new strategic step: allowing licensed commercial transport companies to contract for the transport of goods on behalf of other companies. This decision is exceptional and temporary, effective until September 25th of this year. The initiative aims to improve the efficiency of the Kingdom's land transport fleet, enhance its operational flexibility to keep pace with current economic and commercial changes, and ensure the uninterrupted flow of goods.

General context and its connection to Saudi Vision 2030

This step aligns with the objectives of the National Transport and Logistics Strategy, a key pillar of Saudi Vision 2030. Through this strategy, the Kingdom aims to solidify its position as a global logistics hub connecting three continents. To achieve this, the Public Transport Authority continuously updates regulations and systems, and provides exceptional support to ensure the sustainability of supply chains and assist local companies in facing any operational challenges that may arise regionally or internationally, thus positively impacting the national economy.

Terms and conditions for benefiting from the decision

The Public Transport Authority explained that this exceptional measure aims to enable establishments to maximize their operational capacity. However, the Authority has established precise regulatory requirements to ensure service quality. These requirements stipulate that the truck used must be registered as a "public transport" vehicle and belong to a licensed commercial transport establishment. Most importantly, the Authority emphasized the necessity of documenting all transport operations through the "Logistics" electronic platform. This ensures the organization of operations, enhances reliability and transparency in the land transport sector, and safeguards the rights of all contracting parties.

A complete package: 500,000 trucks and Gulf facilities

The authority's support wasn't limited to this decision alone; it emphasized that this step is part of a comprehensive package of measures to enhance the sector's readiness. This package included declaring over 500,000 trucks ready to support freight transport, as well as launching the "National Carriers Directory" via a logistics platform to facilitate access to reliable services for beneficiaries.

Regional and local economic impact

Regionally, the Authority's decisions highlighted the importance of allowing empty refrigerated trucks from GCC countries to enter the Kingdom. This measure strengthens Gulf economic integration and facilitates intra-regional trade in food and pharmaceuticals. Furthermore, the Authority decided to extend the operational lifespan of trucks to 22 years for an additional six months. This comprehensive package of decisions contributes to stabilizing supply chains, reducing transportation costs, and providing an attractive investment environment that benefits both the national economy and the end consumer.