The General Authority for Ports imposes strict procedures for collecting storage fees
has approved Ports Authority a package of strict regulatory and legal measures aimed at collecting outstanding and current storage fees. This step comes as part of the Authority's efforts to regulate logistics operations, warning those who fail to pay that they will face service suspension and legal action. This decision aims to ensure full compliance with regulations, which will directly contribute to enhancing the efficiency of the maritime sector and facilitating trade.
Legislation developed by the General Authority for Ports to support the economy
Historically, Saudi ports have played a pivotal role in supporting the national economy. With the rapid growth in international trade, the need to modernize operational and financial systems has become increasingly apparent. In this context, the Eastern Province Chamber of Commerce, through a circular issued by the Federation of Saudi Chambers, clarified that the transfer of responsibility for calculating and collecting storage fees to the Ports Authority does not, in any way, absolve beneficiaries of their previous financial obligations. These procedures are based on the regulatory bylaws approved at the end of March, which clearly stipulate that all invoices issued, whether before or after the transfer of responsibility, are considered due and payable immediately without delay.
Strict penalties and suspension of operational services
The relevant department clarified that releasing any goods or completing any operational procedures for those in arrears is strictly prohibited. Furthermore, all port-related services will be suspended until all outstanding payments are settled. The authority warned of a range of deterrent measures against defaulters, starting with the suspension of operational services related to goods and extending to recording unpaid invoices as a clear regulatory violation in the beneficiaries' records, which will negatively impact their commercial rating and market credibility.
Judicial collection mechanisms via enforcement platforms
In a decisive escalation, the relevant authorities indicated that all outstanding dues have been transferred to the debt collection platform, paving the way for strict legal collection procedures through the approved government enforcement platform. They emphasized that abandoning goods and transferring them to abandoned goods yards does not constitute a legal loophole for evading payment, nor does it exempt owners from settling the accumulated fees owed, thus closing the door to any attempts to circumvent the regulations.
The economic impact of the General Authority for Ports' regulations
These decisions carry significant strategic importance that extends beyond the local level to encompass regional and international impact. Locally, these measures ensure the protection of public treasury rights and provide a fair competitive environment for companies. Regionally and internationally, the Saudi Ports Authority's to implementing the highest standards of transparency and governance enhances global investor confidence in the Saudi logistics sector and aligns with the objectives of the National Transport and Logistics Strategy and Saudi Vision 2030, which aim to solidify the Kingdom's position as a global logistics hub connecting three continents.
Legal flexibility guarantees the rights of beneficiaries
Despite the strict enforcement of regulations, the Authority has provided legal flexibility to safeguard the rights of beneficiaries by allowing them to submit objections to invoices. For an objection to be accepted, payment must be completed first, and the objection must then be submitted within a maximum period of 15 days. In conclusion, the Authority urged all companies and cargo owners to promptly fulfill their financial obligations, thereby contributing to enhanced compliance with regulations and the development of the national ports sector to serve a sustainable economy.
