Saudi Arabia announces a massive public transport project linking several governorates

The Saudi Public Transport Authority opened the door for investment in a project to provide passenger transport services by bus to connect more than 200 Saudi cities and governorates through 76 routes that enhance integration between various modes of transport and achieve the objectives of the national strategy for transport and logistics services.

This project is considered a reinforcement of the authority’s role as a regulatory body for the land, sea, and railway transport sectors, and a translation of its objectives, which are to improve its services throughout the country, driven by more investment, innovation, and efficiency that will be provided by the private sector and companies specialized in the field of bus transport.

The authority explained that this proposal comes to enhance competition in this field, provides attractive opportunities for private investors, and enables to raise the quality of service.

It also aims to provide competitive services among operators, indicating that the project aims to transport more than 6 million passengers annually through more than 300 stops in 76 lanes that will pass in 200 Saudi cities and governorates, served by nearly 560 operating buses and more than 150 million kilometers traveled annually. It will contribute to providing more than 35,000 direct and indirect jobs.

The authority initially worked in the intercity bus transport concessions project on the economic feasibility study to liberalize this market; to create a competitive environment to provide service following the highest standards of safety, quality, and reliability, and to ensure integration in planning and operation between different means and modes of transportation.

The study went through several stages, including analyzing the current situation of the Saudi market, reviewing the best international experiences and practices, and choosing the most appropriate liberalization model that meets the demand by providing an efficient and quality transport service, and is attractive to investment by providing a regulatory environment that achieves financial balance for investors.