Saudi Arabia set to study intercity bus transport liberalization
Saudi Arabia's Public Transport Authority (PTA) will organize on Dec. 19 a workshop on liberalization of intercity bus transport services, official SPA news agency reported on Wednesday, citing Rumaih Al Rumaih, head of PTA.
The workshop aims to discuss outcomes of analyzing the current conditions of intercity bus transport market and studying peer markets overseas along with potential alternatives for the local market liberalization.
It will also address the size of intercity bus service market, expected demand going forward in light of growing population, oil prices, fuel tariff hikes, government direct and indirect support and forecasts for macroeconomic conditions locally and abroad, Al Rumaih said.
The study will continue from 2020 to 2045, while the short and medium-term deliverables will cover five and 15-year ranges.
Tadawul-listed Saudi Public Transport Co. (SAPTCO) was granted a concession to provide intercity bus services across the Kingdom by the government in 1978, Al Rumaih added.
Meanwhile, Abulrahman Alkhalaf, acting vice president of planning & development at PTA, said the target liberalization comes as part of the Kingdom's strategic plans for the sector.
The study of competition in the intercity bus transport market will include bus, railways and airline service providers.
The new study aims to find the best alternatives for the market after expiry of SAPTCO's concession.
The study is scheduled for completion within 150 days, Alkhalaf added.