Saudi Arabia divides intercity bus system to 5 franchise areas

Saudi Arabia’s cabinet has approved dividing the intercity bus transport market to five franchise areas, the Saudi Press Agency reported, citing Rumaih Al-Rumaih, chairman of the Public Transport Authority (PTA).

The move aims to enhance the inclusion of the private sector in the transportation sector.

“The decision takes into account the interest of the Saudi Public Transport Company (SAPTCO) and its shareholders’ equity,” Al-Rumaih confirmed.

“A committee was formed to advise on the status of the SAPTCO’s assets. It will be headed by PTA with the membership of various competent government authorities,” he explained further.

The franchising areas were divided as follows: northeast, northwest, southwest, central north and central south regions, Abdulrahman Alkhalaf, vice president of Planning & Development Sector at PTA, said.

“The division takes into account the size of regions, as well as the current and future demand for transport services,” Alkhalaf added.

He also said that the division focuses on balancing profitability among different franchise regions and economic feasibility for investors.

PTA will offer the franchise agreements in public tenders and set the technical specifications of bus transport networks and key performance indicators. It will also qualify bidders and monitor the bidding and award processes.

SAPTCO received yesterday a letter from PTA referring to the decision of the Saudi cabinet to liberate the domestic bus transportation market.