In a significant regulatory step aimed at restructuring the international land transport sector, the Public Transport Authority in the Kingdom of Saudi Arabia has issued its new executive regulations for international passenger bus transport and the local agent for foreign carriers. These regulations are intended to end the prevailing chaos and irregular practices, establishing a new era of professionalism and quality, with a focus on raising safety standards and protecting passenger rights.
General context and objectives of Vision 2030
These new regulations are part of the Kingdom's broader efforts to achieve the goals of Vision 2030, which places the development of the logistics and transportation sector at the heart of its objectives. As a destination for millions of visitors annually, particularly during Hajj and Umrah seasons, Saudi Arabia receives a massive number of buses from neighboring countries. The previous situation lacked precise regulation, allowing for the presence of old and dilapidated buses and unlicensed practices such as unlicensed intercity bus services by foreign carriers, posing a safety risk and creating unfair competition for compliant local companies.
Key features of the new regulations and licensing requirements
The regulations aim to fully organize the market, requiring establishments wishing to operate in this sector to obtain a license from the Authority valid for three years. The license necessitates meeting stringent conditions, including having a head office, demonstrating financial and technical solvency, and owning a fleet of at least five buses, either through ownership or financial leasing. The regulations also impose a maximum operational age limit of ten years from the date of manufacture for each bus to ensure the fleet remains modern and efficient. To enhance digital oversight, connection to the Authority's electronic platform is now a prerequisite for real-time data exchange.
Mandatory “local agent” for foreign carrier
One of the most significant aspects of the new regulations is the requirement for any foreign carrier wishing to operate within the Kingdom to appoint a licensed "local agent." This requirement ensures the existence of a responsible entity within Saudi Arabia that can be consulted, as the agent is accountable to the Authority for all the foreign carrier's obligations. This measure eliminates the phenomenon of foreign companies operating without local legal cover, thereby enhancing accountability and raising the level of compliance with Saudi regulations.
Safety first: Strict standards for drivers and buses
The authority has placed passenger safety at the forefront of its priorities, emphasizing the need to equip buses with essential amenities and safety features such as restrooms, internal storage, and luggage compartments. Regarding personnel, the regulations mandate that every driver obtain a "Professional Driver Card" after passing a competency test, having a clean criminal record, and possessing a valid driver's license. For long journeys exceeding 400 kilometers, the presence of a "co-driver" is required to ensure drivers adhere to the specified driving and rest hours and to reduce road accidents caused by fatigue.
Expected impact on the local and regional market
This regulation is expected to have a multifaceted positive impact. Domestically, it will improve the quality of services provided to travelers, enhance road safety, and protect national investments in the transportation sector by preventing unfair competition. Regionally, this step will raise the standards of land transport in the region, as foreign companies wishing to enter the Saudi market will be required to modernize their fleets and adhere to the highest safety and operational standards, which will positively impact the transportation sector in their home countries. The new regulation also grants inspectors broad powers to detect violations and impose deterrent fines, underscoring the Kingdom's commitment to implementing these new regulations and achieving its strategic objectives.
