In a decisive move aimed at regulating the logistics sector and raising compliance levels, the Saudi Ports Authority (Mawani) has warned contractors and companies working with government entities that it will take strict punitive measures against violators who continue to operate transport vehicles without valid operating permits. The Authority emphasized that any laxity in enforcing these requirements will directly result in the prohibition of containers being received at Saudi port sites and yards.
Details of the circular and official warnings
A recent circular issued by the Federation of Chambers of Commerce, based on directives from the General Authority for Ports and instructions from the General Authority for Transport, revealed ongoing violations by some contractors in government projects and operational contracts. The circular, which sources have reviewed, explained that a number of contractors continue to use trucks without obtaining the required transport licenses or operating permits, disregarding the grace period granted to rectify their status. These violations include contractors operating in direct transport activities, as well as those involved in projects requiring heavy truck traffic, such as construction projects and public cleaning contracts.
Special procedures at King Abdulaziz Port in Dammam
In the course of implementation, the Saudi Ports Authority (Mawani) approved a set of regulatory controls, focusing particularly on the logistics zone at King Abdulaziz Port in Dammam. Mawani mandated that all contracting or licensed companies in the zone strictly verify, when contracting with any carrier, that the trucks possess valid operating cards issued by the Public Transport Authority. Mawani emphasized that this obligation covers all direct and indirect transactions related to the transport of containers to and from storage yards, warning that any negligence will result in the immediate denial of container access to non-compliant locations.
Disclaimer and no financial compensation
The authority has preempted any future claims, emphasizing that no financial claims or compensation arising from the decision to suspend container admissions will be considered. This includes, but is not limited to, storage fees, penalties for delays in returning containers to storage yards, or any additional operational costs incurred by the contractor due to non-compliance with regulations. The authority holds the beneficiary, the instigator, or the operator fully legally and financially responsible, asserting that these measures are necessary to ensure a compliant work environment.
Organizational context and its strategic importance
These measures are part of the National Transport and Logistics Strategy launched by the Crown Prince, which aims to solidify the Kingdom's position as a global logistics hub connecting three continents. The "Operating Card" is a crucial document that ensures a truck has passed technical inspection and operates under the umbrella of a licensed facility, thus contributing to improved road safety and a reduction in accidents caused by dilapidated trucks.
These measures also aim to combat commercial concealment in the transport sector, ensure fair competition among compliant companies, and eliminate the phenomenon of unregulated transport. The integration between the General Authority of Ports and the General Authority of Transport is a fundamental pillar for achieving the goals of the Kingdom's Vision 2030 in raising the efficiency of logistical performance and improving the Kingdom's global Logistics Performance Index.
