Regulations for transporting goods by bicycle: impoundment, removal, and fines
In a decisive move aimed at restructuring the logistics sector, specifically the delivery industry, the Public Transport Authority announced a new executive regulation for the transport of goods by motorcycle. This comes at a time when the e-commerce and delivery app sectors are experiencing rapid growth in Saudi Arabia, necessitating legislative intervention to ensure service quality and enhance road safety.
Organizational framework to address delivery chaos
This regulation comes in response to the challenges posed by the significant increase in motorcycle use for last-mile delivery services. Authorities have recently observed violations that have negatively impacted the urban landscape and road safety. Through these regulations, the Authority aims to align this vital activity with the objectives of the National Transport and Logistics Strategy, which focuses on safety and sustainability.
Details of penalties and fines
The authority has established a detailed table for classifying violations, dividing them into serious and non-serious to ensure a graduated scale of penalties. The most prominent financial penalties include the following:
- Practicing the activity without a license: a fine of up to 28,800 riyals for large establishments with the bicycle being impounded for 40 days, and 16,800 riyals for individuals.
- Doubling fines: A strict mechanism that doubles the fine when the violation is repeated within one year, reaching five times the fine for the fourth time.
Deterrent measures: detention, deportation, and public shaming
The regulations did not stop at financial penalties, but granted broad powers to inspectors and the violations review committee, including unprecedentedly strict procedures:
- Vehicle impoundment: The impoundment period can reach up to 60 days in cases of repeated violations.
- Deportation of non-Saudis: The regulations explicitly stipulate the deportation of any foreigner who violates the provisions of Article Four of the system, which reflects the state’s seriousness in regulating the labor market in this sector.
- Defamation: Publishing the names of violators in local newspapers at their own expense after the ruling becomes final.
Localization, quality and safety standards
As part of efforts to support Saudization, regulations mandate that establishments appoint a Saudi operational supervisor for every 50 cargo motorcycles, with a fine of 12,800 riyals imposed on violators. The regulations also emphasize the protection of end-user rights, considering any breach of customer data privacy or tampering with goods as serious offenses. Furthermore, the regulations completely prohibit the transport of passengers on cargo motorcycles and impose precise technical requirements regarding storage containers and temperature control to ensure the safety of transported products.
These comprehensive measures confirm the Public Transport Authority’s determination to clean up the market from arbitrary practices and ensure a fair competitive environment that serves the national economy and protects the consumer at the same time.
