• The Public Transport Authority affirms the principle of partnership with the private sector for the development of freight transport, freight forwarding, and leasing intermediaries

    18/03/2018

    In two specialized workshops in Asharqia Chamber, the Public Transport Authority affirms the principle of partnership with the private sector for the development of freight transport, freight forwarding, and leasing intermediaries.

     

    The Public Transport Authority reviewed the detailed aspects of the legislators regulating the movement of goods and freight brokers. It confirms the size of the partnership between the Authority, as a government agency overseeing the activity, and the private sector practicing and investing in this sector.

    Two specialized workshops were held on Thursday, 15 March 2018 at the headquarter of Asharqia Chamber in Dammam. During the workshops, Fawaz Bin Zanaf Al-Sahli, the Vice President of the Public Transport Authority for the Land Transport Sector, argued the Authority's keenness to develop the sector and raise its level of contribution to the national economy. He reviewed a large number of comments that was written by investors in this area, as the list is subject to observation and improvement. He added that the list has been prepared on the basis of shared visions with the private sector, and on the access to many international experiences. He said, "Our goal is to develop the transport sector, which is a significant step in the movement of the national economy." In addition, he pointed out that the Authority has set new requirements for the purpose of developing investment in the sector. He noted that the Authority is in the process of launching the electronic portal, which will address many challenges. Al-Sahli said that the Authority has worked to determine the classification of the transport sector, as this would limit the excesses.

    Bandar bin Rafie Al Jabri, a member of the Board of Directors of Asharqia Chamber, stated, "we are starting today in accordance with a clear vision of objectives and trends, in which the transport sector is a key pillar in achieving its aspirations. It provides insurance for the movement of passengers and goods both internally and externally." He added that it participates in the forward movement of the national economy with its logistic services to the various productive and service sectors. Also, it provided several opportunities for work and other promising for local investors.

    Al-Jabri added that the new regulations of the Public Transport Authority, or its re-enactment of the old regulations are in line with the economic developments.  For example, the regulations that are related to car rental activities and rental brokers, as well as its keenness to involve the private sector in making observations and visualizations. These regulations are a real translation of the vision of the Kingdom of 2030 that is to develop the legislative environment of the transport sector, and to involve the private sector in economic decision-making. It also reflects the economic mobility and the establishment of a national industry that contributes to the promotion of economic development and competitiveness of the Kingdom at the local and international levels.

    He pointed out that Asharqia Chamber, in cooperation with the Public Transport Authority, is aware of the importance of developing the transport sector at the level of regulations and procedures. It is because it represents a great significance in supporting the national economy both in terms of ease of production and transports as well as in terms of generating jobs for citizens. Al-Jabri praised the efforts exerted by the Authority in raising the efficiency of public transport, maintaining the level of investment reached by the sector, and increasing its contribution to the national economy.

    Abdul Majeed Al-Tassan, Director of Land Transport Development at the Public Transport Authority, said that one of the Authority's tasks is to raise the efficiency of public transport and maintain the safety of investors and users alike. Therefore, they seek to update and develop the regulations, listen to the stakeholders, and take their views and observations. He added, "We are aware of the size of the problems and challenges faced by the transport sector. We find that the sector is in urgent need to develop its executive regulations, and in this way we seek to be neutral and we are keen on the safety of investors and users in general. We also hope to reach a neutral and useful regulations." He pointed out that the Authority has received many comments and suggestions, which reflect the level of partnership between the Authority and the private sector. Because its goal is to develop regulations in order to improve performance of the sector, the Authority is keen to preserve the rights of all parties. He stressed that the regulation governing the practice of transporting goods and freight brokers aimed at regulating the licenses of carriers, freight brokers and truck rental; the organization and separation of the operation of the carriage of goods on account of transport; raising the professionalism of drivers; and upgrading the operational efficiency of trucks.

    Abdullah Al-Qahtani (from the Public Transport Authority) argued that the reality of the public transport sector is characterized by being a non-attracting sector for investment, unclear rights and obligations of the transport process, poor adaptation of international standards, lack of professional qualification for drivers, lack of fleet management, as well as randomization and concealment of paid cargo transport activity, low level of safety in activity, and lack of regulation of truck leasing activity.

    Al-Qahtani also spoke about the licensing in the sector, which is based on several types: license for the transfer of goods with the wages of the establishment, licensing of the carriage of goods by the wages of individuals, the license of the freight broker, and the license to rent trucks.

    He explained that all licenses and operating cards in accordance with the provisions of the regulation would be issued through a transport portal. The person who works to transport goods and products by trucks should obtain a special transport card for each truck, which is valid fro one year only, in order to control the work, and to achieve the safety requirements for trucks, periodic inspections, and the efficiency of drivers.

    He emphasized the need for training in the transport sector in order to raise the professional efficiency of all workers in the road transport sector, improve the level of transport safety, and preserve the environment, and thus maintain the infrastructure of road and bridge networks. He added that the certificate of a professional driver is obtained after passing the professional proficiency test. A driver's certificate of transport of hazardous materials is obtained after passing the test in this field. The certificate is valid for five years and is renewed after proving a training course from a certified training center.

    Al-Qahtani said that the regulations included the main controls for trucks, as the most important of which is that each truck should be issued on a one-year operation card, and specify the operating life of the truck that carries the goods for rent or that works in leasing. The inspection of the truck shall be subject to periodic inspection and the trucks shall be subject to initial inspection in safe areas on the side of the road, (roadside examinations include the introduction of a periodic examination certificate and documentation for operation and transport, the visual assessment of the technical condition of the truck, the relevance of the truck to the nature of the goods being transported, ensuring that the goods are loaded and installed in a safe manner that does not pose a danger to public safety, and to be provided with automatic tracking devices.) Brake safety, chassis and emission of exhaust should also be subject to detailed inspection.

    Al-Qahtani provided a detailed explanation of all terms used in the transport sector such as transport document, professional efficiency, periodic inspection (initial and detailed), leasing and its controls, and the contract of carriage.

    He also reviewed a large number of the comments received by the Authority by investors and beneficiaries and what was the answer of the Authority to them. Many of the proposals have been adopted and added to the list, and some of the proposals have been explained in details.

    In the second workshop specialized in the car rental sector, officials discussed several points that were noted in the drafting of the regulation regarding the renewal of the license and the mechanism for payment of fines.

    The workshop also discussed the regulations aimed at reducing the violation of regulations and giving the violator a time to rectify his situation based on the latest updates. In addition, it discussed allowing the system to be able to renew the license, long enough before the expiration period.

    The officials also spoke during the workshop about the possibility of amendment in legal entities without the approval of the authorized agencies for these activities. It is also impossible to determine the duration of the approval or refusal to change as the agency must check the status of the establishment and the impact that may result, both on the entity or the agency or other parties dealing with those enterprises requesting change through the absence of obligations on them.

    At the end of the workshops, Bandar Bin Rafi Al Jabri, board member, honored the participants with a commemorative shield.​

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