International Passenger Transport Regulations: Conditions of the Local Agent and Prohibition of Unlicensed Transport
In a strategic move aimed at regulating the land transport sector and improving road safety, the Public Transport Authority in Saudi Arabia has issued new executive regulations for international passenger bus transport and local agents for foreign carriers. This crucial step aims to eliminate the potential for disorganization in cross-border transport operations and to protect the local market from unfair competition.
Strategic context and national vision
These decisions cannot be viewed in isolation from the National Transport and Logistics Strategy, stemming from the Kingdom's Vision 2030, which aims to solidify the Kingdom's position as a global logistics hub connecting three continents. Given Saudi Arabia's pivotal geographic location, the international bus transport sector experiences heavy traffic, particularly during Hajj, Umrah, and tourism seasons. This has necessitated the establishment of stringent legislative frameworks to ensure service quality, adherence to international standards, and to prevent the entry of dilapidated or substandard buses into Saudi Arabia.
Local Agent: Investment and Responsibility Gateway
The regulations introduced a fundamental change by requiring foreign carriers to contract with a licensed "local agent" within the Kingdom. This requirement is not merely for administrative purposes; it also carries significant economic and legal dimensions. It ensures the presence of a legal entity within the country that is accountable to official authorities for any violations or financial obligations that the foreign carrier may encounter. Furthermore, the regulations stipulate that establishments wishing to operate in this sector must obtain a three-year license, demonstrate financial and technical solvency, and own a fleet of at least five buses. This enhances investment opportunities for strong national companies and excludes unqualified newcomers.
Safety standards and passenger welfare
The authority prioritized the safety of lives, setting a maximum operational lifespan of ten years for buses and mandating the provision of advanced technical equipment, including restrooms, overhead compartments, and secure luggage storage. Regarding personnel, the regulations imposed stringent requirements on drivers, including passing professional competency tests and possessing a clean criminal record. To reduce road accidents caused by fatigue on long journeys, the regulations mandated the presence of a co-driver on trips exceeding 400 kilometers, along with strict enforcement of driving and rest hours.
Protecting the market from "unlicensed vendors" and safeguarding travelers' rights
The regulations have settled the debate surrounding the operation of foreign buses within the Kingdom, definitively prohibiting them from transporting passengers between Saudi cities (known locally as "Kaddada"), restricting their operations to transporting passengers to and from outside the Kingdom only. This decision protects the national carrier from unfair competition and boosts local economic returns. The regulations also safeguard passenger rights by requiring carriers to issue detailed tickets and official baggage manifests, establishing clear mechanisms for compensation and complaints, and imposing deterrent fines on violators, payable before the bus leaves the Kingdom.
