New transport penalties: impoundment and deportation to regulate order delivery
In a decisive move aimed at restructuring the logistics sector and regulating the chaotic delivery market, the Public Transport Authority in Saudi Arabia has issued a new and strict executive regulation governing the transport of goods using motorcycles. This action comes in response to the significant expansion of the e-commerce market and delivery applications, and the accompanying challenges related to traffic safety and the quality of services provided to customers.
Organizational context and the importance of the delivery sector
Over the past few years, the Kingdom has witnessed an unprecedented surge in reliance on delivery applications, making motorcycles an integral part of the daily landscape on the roads. Despite the vital role this sector plays in supporting the digital economy, the unregulated practices of some drivers and businesses have necessitated decisive legislative intervention. The new regulations aim to strike a balance between facilitating business operations and ensuring the highest standards of safety and quality, in line with the objectives of the National Transport and Logistics Strategy and the Kingdom's Vision 2030.
Classification of violations and financial penalties
The authority adopted a rigorous methodology for classifying violations to ensure fairness and deterrence, dividing them into two main categories: serious violations and minor violations. Regarding financial penalties, these were significantly increased
- Practicing the activity without a license: The fine for large establishments reaches 28,800 riyals with the impounding of the bicycle for 40 days, while the fine for individuals for the same violation is 16,800 riyals.
- Repeated violations: The authority has put in place an escalating mechanism, whereby the fine is doubled in the event of a repeat violation 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 also granted inspectors broad powers to enforce order by force, including:
- Extended impoundment: Vehicle impoundment can last up to 60 days in advanced repeat cases.
- Deportation of non-Saudis: The regulations clearly stipulate the deportation of any foreigner who violates the provisions of Article Four of the system, which reflects the state’s seriousness in regulating the labor market in this sector.
- Public shaming: The names of violators will be published in local newspapers at their own expense after the ruling becomes final, to serve as a lesson to others.
Consumer protection and localization promotion
The new regulations placed a strong emphasis on protecting the end user, classifying any breach of customer data privacy or tampering with goods as serious and non-negotiable offenses. They also imposed stringent technical requirements regarding the use of secure containers to ensure the safety and temperature of the goods.
As part of supporting localization, legislation has obligated establishments to appoint a Saudi operational supervisor for every 50 motorcycles, with a fine of 12,800 riyals imposed on large establishments that violate this condition, thus opening up new job prospects for Saudi youth in managing logistics operations.
In conclusion, the Authority confirmed that the impounded bicycles will not be released until the impoundment period has ended and all fines have been paid in full. The Authority also reserves the right to close violating shops or block their applications electronically, to ensure full and comprehensive compliance that restores order to this vital sector.
