Regulations for goods transport motorcycles: Huge fines and deterrent penalties
Regulating the light transport sector: A strategic step towards achieving the goals of Vision 2030
In a significant regulatory step aimed at organizing the light transport sector and enhancing road safety, the Public Transport Authority in the Kingdom of Saudi Arabia has approved a new and detailed executive regulation governing the commercial transport of goods using motorcycles. This decision comes amidst the rapid growth of the delivery and logistics sector, a key pillar of the digital economy that the Kingdom seeks to develop as part of its Vision 2030 objectives. With the increasing reliance on electronic delivery applications, the need has become critical for a legislative framework that ensures operational efficiency, protects the rights of all parties, and improves road safety.
Background of the decision and its strategic importance
Recent years have witnessed a boom in last-mile delivery services, driven by changing consumption patterns and the rise of e-commerce. Motorcycles have become a key component of this sector due to their ability to save time and bypass traffic congestion in major cities. However, this rapid growth has been accompanied by several challenges, including unregulated practices, safety risks, and a lack of clear service standards. This regulation aims to address the regulatory chaos and establish a professional, organized sector that effectively contributes to the national economy and enhances the Kingdom's attractiveness as a regional logistics hub. Regulating this sector will not only have an economic impact but will also improve the quality of life by providing safe and reliable delivery services for citizens and residents.
Details of the sanctions: a gradual and deterrent system
The new regulations adopt a strict and graduated approach to imposing penalties to ensure full compliance. The authority has granted inspectors broad powers to enforce the system, including imposing immediate fines of up to 10,000 riyals, in addition to impounding offending vehicles and issuing warnings. A specialized committee reviews serious violations that warrant harsher penalties, such as:
- Suspension and cancellation of licenses: The committee may suspend the facility’s license in whole or in part, or stop drivers and vehicles for up to a full year, up to and including the final cancellation of the license in cases of repeated violations.
- Doubling fines: The regulations stipulate that the value of the financial fine shall be doubled up to five times when the violation is repeated within one year, in order to deter violators and prevent leniency in the application of the regulations.
- Non-financial penalties: The penalties were not limited to the financial aspect, but included other deterrent measures such as deporting non-Saudi drivers who violate the regulations from the Kingdom, and publicly shaming violating establishments by publishing a summary of the decision in local newspapers at their own expense.
Serious violations and record fines
The regulations categorized violations according to their severity and linked the fine amount to the size of the establishment. Operating without a license or with a revoked license is considered one of the most serious violations, with fines for large establishments (those owning more than 250 bicycles) reaching 28,800 riyals, along with impounding the bicycle for a period ranging from 20 to 60 days. The regulations also emphasized the necessity for drivers to obtain a "professional driver's card," considering operating without one a serious violation punishable by a fine of 2,600 riyals and a one-month suspension of the driver's work, with the suspension period increasing for repeated violations. To ensure the Saudization of supervisory positions, the regulations imposed a fine of up to 12,800 riyals on large establishments that do not appoint a Saudi operations supervisor for every 50 bicycles.
Protecting public safety
The regulations place particular emphasis on public safety, categorically prohibiting the transport of passengers or hazardous materials on motorcycles designated for goods transport, with a fine of 800 riyals for such violations. The authority is also empowered to block applications and websites belonging to violating establishments and to close their premises to ensure they cease operating illegally, thus underscoring the government's commitment to regulating this vital sector and protecting road users.
