The Public Transport Authority begins impounding buses belonging to employees that violate regulations
The Public Transport Authority begins regulating and controlling employee buses
In a strategic move aimed at regulating the private transport sector, the Public Transport Authority, in cooperation with the Federation of Saudi Chambers and private sector establishments, called for the swift issuance of licenses and operating permits for employee transport buses. The Authority warned that violations against unlicensed vehicles will be monitored, in accordance with the executive regulations for private passenger transport, which will come into effect on the 10th of Rabi' al-Awwal 1447 AH, corresponding to September 2, 2025.
General context: Saudi Vision 2030 and the development of the logistics system
These regulatory measures are part of the objectives of Saudi Vision 2030, specifically the National Transport and Logistics Strategy, which aims to improve quality of life and enhance road safety. Historically, the private employee transportation sector lacked precise regulation, leading to challenges related to traffic safety and haphazard congestion. Through these regulations, the Kingdom seeks to govern this sector and ensure its compliance with the highest international standards in transportation and occupational safety.
Regulatory requirements and application of standard specifications
The Eastern Province Chamber of Commerce, through a circular to the Federation of Saudi Chambers, emphasized the necessity for commercial establishments to adhere to the new regulations and immediately begin obtaining the required documents through the approved platforms. Article 9 of the regulations mandates the issuance of an operating card for each bus, which serves as the official license. Article 4 stipulates a minimum requirement of one bus for conducting business, whether through direct ownership or lease-to-own.
In the same vein, Article Fifteen obligates service providers to implement Saudi standard specifications and approved safety equipment, while adhering to the provisions of the Traffic Law. To ensure the safety of drivers and passengers, Article Twenty-Six emphasizes compliance with driving hours and daily and weekly rest periods for bus drivers, particularly for establishments whose operations require travel between cities or outside the Kingdom of Saudi Arabia, in order to reduce accidents caused by fatigue.
The mechanism for allocating buses and its connection to the workforce
The authority revealed a precise regulatory mechanism for allocating the number of buses and their seats based on the establishment's workforce density. It stipulated that employees must be pre-registered with the General Organization for Social Insurance under the establishment's unified number, or hold long-term employment contracts of at least one full year. The number of buses allocated is calculated by dividing the total number of employees by the number of available seats on the bus, rounding up to the nearest whole number. Furthermore, a minimum of eight employees is required for an establishment to be approved to own its first bus.
Expected impact: locally and regionally
Domestically, this regulation will reduce traffic congestion and carbon emissions, supporting Saudi Arabia’s Green Initiative. It will also provide a safe and reliable working environment for employees, positively impacting productivity. Regionally and internationally, the Kingdom’s commitment to implementing strict standards for driving hours and occupational safety enhances its position as an attractive investment environment that respects workers’ rights and adheres to international standards, thus improving the Kingdom’s ranking in global logistics performance indicators.
Support for facilities and awareness workshops
To ensure a smooth transition to these standards, the Public Transport Authority has provided an opportunity for establishments wishing to deepen their understanding of the requirements by organizing awareness workshops in direct coordination with specialists in the operations and digital transformation sector. These regulatory steps aim to enhance the efficiency of private transport, ensure passenger safety, and achieve full integration with existing traffic and labor regulations.
