Regulations for goods transport motorcycles: fines up to 28,000 and deportation
The Public Transport Authority in Saudi Arabia has issued decisive regulations aimed at organizing the delivery sector, including the approval of regulations governing motorized goods transport motorcycles for commercial purposes. This strategic move aims to enforce regulatory discipline and curb the recent haphazard violations on the Kingdom's roads by imposing deterrent fines exceeding 28,000 Saudi Riyals and penalties that can include confiscation of offending vehicles.
The general context for regulating the delivery sector in Saudi Arabia
Over the past few years, Saudi Arabia has witnessed a tremendous boom in the e-commerce sector and delivery applications, leading to a widespread and rapid proliferation of commercial motorcycles across its cities. This accelerated growth, while beneficial to the economy, has also created traffic and regulatory challenges that have necessitated decisive intervention from the relevant authorities. The regulations governing cargo motorcycles are a direct response to these challenges, aligning with the objectives of Saudi Vision 2030, which aims to enhance the quality of life, improve the urban landscape, and regulate the logistics sector to be safer, more efficient, and more reliable.
Broad powers and a firm gradation of penalties
The Public Transport Authority has granted inspectors broad powers, including the authority to impose immediate fines of up to 10,000 riyals, in addition to issuing warnings and impounding violating vehicles. The Committee for Reviewing Grievances and Violations of the Land Transport System is responsible for imposing harsher penalties exceeding this amount to ensure market stability. The Committee's powers extend to suspending licenses completely or partially, impounding drivers or vehicles for up to one year, and ultimately revoking the license.
The system employs a strict escalation of penalties, with fines increasing up to fivefold for repeat offenses within a year. As a further measure, repeat offenders can be subject to daily fines equivalent to 10% of the maximum penalty.
The expected impact of implementing the regulations for goods transport motorcycles
The implementation of this regulation has far-reaching positive implications. Locally, the new system will contribute to improved road safety, protect consumer rights, and ensure the provision of professional delivery services. The decision also bolsters Saudization efforts by requiring large establishments to employ a Saudi operational supervisor for every 50 motorcycles, under penalty of a fine of up to 12,800 riyals. Regionally, this step positions the Kingdom as a leading model in regulating the gig economy and the delivery sector, potentially inspiring neighboring countries to adopt similar legislation to govern their growing markets.
Blocking apps and removing violators
The regulations included strongly worded warnings and deterrent non-financial penalties, most notably the deportation of non-Saudi drivers who violate transportation regulations from the Kingdom. Penalties also included publicly shaming violators by publishing a summary of the decision at their expense in local newspapers to ensure maximum public deterrence.
The authority emphasized its power to block applications and websites belonging to violating establishments and to close shops operating without a valid license. The measures can extend to requesting the competent court to confiscate the motorcycle of anyone operating without a license for the fifth or more offenses.
Classification of establishments and driver violations
The authority divided establishments into four categories to determine the size of fines, ranging from micro (possessing a maximum of 5 bicycles) to large (exceeding 250 bicycles). Serious violations incurred the highest fines, with large establishments facing a fine of 28,800 riyals for operating without a license or after its cancellation, along with the impounding of bicycles for periods ranging from 20 to 60 days in cases of repeated violations.
Operating without a professional driver's license is classified as a serious violation, punishable by suspension for progressively longer periods of up to five months and a fine of 2,600 riyals. Transporting passengers on motorcycles or transporting goods containing hazardous materials is strictly prohibited and carries a fine of 800 riyals. The authority also imposed a financial penalty on service providers found to be dealing directly with individuals to ensure that transactions remain within the established institutional framework.
Finally, the regulations stipulate that the warning principle applies only to first-time, non-serious violations, with a specific grace period granted for compliance. They concluded by emphasizing that the release of impounded motorcycles is contingent upon the expiration of the impoundment period and full payment of all fines, fees, and towing charges.
