The Public Transport Authority in Saudi Arabia has officially announced the issuance of the new executive regulations governing truck rental for freight transport. This step comes as part of a comprehensive strategy aimed at restructuring the land transport sector and improving the efficiency of logistics services, in line with the objectives of the National Transport and Logistics Strategy and the Kingdom's Vision 2030.
The context of the organization and its importance within Vision 2030
This regulation is of particular importance given the major economic transformations underway in the Kingdom, as the logistics sector is a cornerstone of diversifying non-oil revenue streams. Through these regulations, the Kingdom aims to solidify its position as a global logistics hub connecting three continents. The new regulation directly targets the elimination of the haphazard practices and commercial concealment that previously plagued the sector, thereby ensuring a fair and transparent investment environment that attracts both domestic and foreign capital.
Licensing requirements and minimum fleet size
The new regulations stipulate that truck rental activities are restricted to establishments and companies only, requiring a valid license from the Authority for a period of three years. In a significant change to ensure financial solvency and operational capacity, the Authority mandated that investors maintain a minimum fleet of 25 vehicles. This includes single vehicles, tractors, and cars, provided they are wholly owned by the establishment or leased through financing, and officially registered as "public transport.".
The administrative requirements also included the necessity of a valid commercial registration that includes the specified activity, valid Zakat, tax, and social security certificates, in addition to having a suitable location for conducting the activity in the city where the license is issued. The Authority emphasized the requirement of "electronic linkage" to its platform, which enhances the governance of operations and allows for real-time performance monitoring and quality control.
Operational life, safety and environmental standards
In the interest of road safety and environmental protection, the regulations have established strict technical standards for the operational lifespan of vehicles. The operational lifespan is set at 20 years from the year of manufacture for vehicles with a gross weight exceeding 3,500 kg, 10 years for lighter vehicles, and 5 years for support vehicles. The regulations also mandate the issuance of an annual "operating card" for each vehicle, requiring valid periodic technical inspections, insurance, and the installation of approved safety barriers for heavy trucks. This contributes to reducing accidents, improving the urban landscape, and decreasing carbon emissions.
Regulating the contractual relationship and preserving rights
To guarantee the rights of all parties involved in the market, the regulations mandate that service providers conclude a standardized electronic "lease agreement" that clearly defines the obligations of both the lessor and lessee. Under this agreement, the lessor is responsible for routine maintenance and the vehicle's technical safety, while the lessee is obligated to use the vehicle within the specified range and bear the costs of fuel and any resulting traffic violations. The regulations also include a clear grievance mechanism, allowing those affected to appeal violations within 30 days of notification, thus reinforcing the principles of transparency and fairness in the sector.
