New transport regulations: Bicycles to be impounded and foreign violators deported
In a decisive move aimed at reorganizing the logistics sector and regulating the growing delivery market, the Public Transport Authority in Saudi Arabia has issued new executive regulations for the transport of goods using motorcycles. These regulations include a set of strict controls and severe penalties, ranging from vehicle impoundment to the permanent deportation of violating expatriate workers, to ensure the highest standards of safety and quality.
Organizational context and the importance of the delivery sector
Over the past few years, the Kingdom has witnessed a tremendous boom in the e-commerce and delivery app sector, leading to a significant increase in the number of motorcycles used for transporting goods and food within cities. Despite the vital role this sector plays in the digital economy, its rapid expansion has been accompanied by challenges related to traffic safety, urban aesthetics, and the quality of service provided to the end user. The new regulations are part of the Public Transport Authority's strategy to align with the goals of the Kingdom's Vision 2030 in developing the logistics sector and enhancing operational efficiency.
Classification of violations and financial penalties
The authority adopted a precise methodology for classifying violations, dividing them into two main categories: serious violations and minor violations. This methodology aims to ensure a graduated system of penalties to guarantee fairness, while maintaining strict enforcement for violations that affect safety or public order. The most prominent financial penalties include the following:
- Operating without a license: A fine of up to 28,800 riyals for large establishments, and 16,800 riyals for individuals, with the bicycle being impounded for 40 days.
- Doubling fines: A mechanism has been activated to double the fine in case of a repeat offense within one year, starting from double and reaching five times the basic fine when repeated for the fourth time or more.
Arrest, deportation, and defamation procedures
The regulations did not stop at financial penalties, but granted inspectors broad powers to enforce order, including strict punitive measures:
- Vehicle impoundment: The impoundment period can reach up to 60 days in cases of repeated violations.
- License suspension: Non-compliant establishments may face a license suspension penalty of up to 9 months.
- Deportation of non-Saudis: The regulations clearly stipulate the deportation of any resident who violates the provisions of Article Four of the system, reflecting the state’s seriousness in regulating the labor market in this sector.
- Public shaming: The names of violators will be published and they will be publicly shamed in local newspapers at their own expense after the ruling becomes final.
Localization, quality and safety standards
In support of national talent, the new regulations mandate that establishments appoint a Saudi operational supervisor for every 50 motorcycles, with a fine of 12,800 riyals imposed on establishments that fail to meet this requirement. The regulations also focus on protecting consumer rights and safety through:
- Transporting passengers or hazardous materials via cargo bikes is prohibited and considered a serious offense.
- Imposing fines for violating customer data privacy.
- The requirement to have suitable containers for safe storage and temperature control to ensure the safety of food and goods in transit.
These measures are expected to contribute to cleaning up the market from random practices, raising the level of competitiveness among licensed companies, as well as significantly enhancing traffic safety on the Kingdom’s streets.
