New bus rental regulations: Strict conditions to enhance safety
In a move aimed at restructuring the land transport sector and improving the quality of services provided, the Public Transport Authority in Saudi Arabia announced the adoption of the new executive regulations for bus rental and brokerage activities. This step comes as part of a series of legislative reforms in the sector to ensure the highest standards of safety and security for users.
Strategic context and comprehensive development
This new regulation falls under the umbrella of the National Transport and Logistics Strategy, which aims to solidify the Kingdom's position as a global logistics hub. Regulating the bus rental sector is a vital component of this vision, particularly given the growing demand for public and tourist transportation services, and the increasing numbers of Umrah pilgrims, Hajj pilgrims, and tourists, all of which necessitate a robust legislative framework to ensure operational efficiency and service reliability.
"Ironic" requirements for drivers and vehicles
The authority has established strict and uncompromising standards regarding both human and mechanical aspects. The regulations require drivers to have a clean criminal record and pass professional competency tests to ensure they are both behaviorally and technically qualified. They also mandate daily vehicle inspections before departure and strictly prohibit smoking inside the passenger compartment.
Regarding buses, the regulations stipulate an operational lifespan not exceeding ten years from the year of manufacture, to ensure the fleet's modernity and technical efficiency. They also require establishments to maintain a minimum fleet of ten buses and to issue an annual operating permit for each bus, linked to the validity of the technical inspection and insurance.
Consumer protection and digital transformation
The regulations did not overlook the technical aspects and the rights of beneficiaries, mandating electronic integration with the Authority's platforms to enable automated monitoring. They also required companies to use standardized contracts that guarantee the rights of all parties and prohibited previous negative practices such as mortgaging tenants' official documents.
The regulations also guarantee the tenant's right to obtain an immediate replacement bus in the event of the original bus breaking down for a technical reason, without incurring any additional costs, which enhances confidence in the transportation sector.
Expected impact of the regulation
This regulation is expected to help rid the market of unlicensed operators and establishments that do not adhere to safety standards, thereby raising the level of quality-based competition. It will also enhance road safety and reduce accidents caused by vehicle deterioration or driver incompetence, positively impacting the national economy and the tourism sector.
The authority concluded its regulations by emphasizing its powers in field monitoring and surprise inspection, with the imposition of penalties that may reach the cancellation of the license for violating establishments or those unable to correct their situations, while providing the opportunity to appeal to ensure justice.
