“The ministry is currently studying a proposal to open up bus transport between cities when an agreement with SAPTCO ends in the middle of this year,” an official source said. The agreement with SAPTCO is renewed after every 10 years. At present private bus companies are operating between the Kingdom and other neighboring countries such as the UAE, Kuwait, Syria, Egypt and Yemen.
Analysts said the new move would improve the quality of transport service between cities as a result of competition between private companies to win clients.
There are about 9,000 private buses operating between the Kingdom and foreign destinations apart from 17,000 mini buses that provide inter-city services. Investments in the sector are estimated at SR11 billion. Businessmen have called for a higher authority to organize the bus transport sector.
Saud Al-Nafeei, chairman of the national land transport committee, said the move would expand the land transport sector. It will also increase investment in the sector, especially with the formation of the new GCC Common Market, which was launched on Jan. 1, 2008.
Land transport plays a significant role in strengthening Saudi Arabia’s economy and its serves productive and service sectors. A national strategy is being worked out to provide a safer and modern transport network linking the Kingdom’s residential, industrial and agricultural areas.
