Investors in the land transport sector have warned of the detrimental effects of the increasing infiltration of unregulated or masked labor into the transport industry.
The sector is currently facing economic difficulties primarily because of the government mandating a high percentage of Saudization and imposing new annual levies for expat work permits, which have risen to SR 2,500 from SR 100.
Abd Al-Rahman Otaishan, ex-chairman of the Land Transport Commission at the Asharqia Chamber of Commerce & Industry, and a major investor in the sector, said the difficulties of the sector have forced expats with work permits to rent dozens of trucks and then have illegals drive them.
“At a time when the land transport business is experiencing serious difficulties, especially in the last few years, we are witnessing a marked increase in the number of workers who have run away from their sponsors. If one of them is caught by the authorities, he is simply deported. This penalty is not sufficient to deter perpetrators. Actually it is the sponsor who is hurt because of this,” Otaishan said. He called for the agencies concerned to support the land transport business by mandating that contractors implement their giant projects through subcontracting with local companies that are complying with the regulations. He demanded that the sector be monitored before things get out of hand and expat workers gradually dominate the market. This, he believes, will have a negative impact on the national economy.
Knowledgeable sources estimate the value of the Saudi land transport sector to be more than SR 80 billion.
Meanwhile, Said Al-Bassami, vice chairman of the Land Transport Commission at Council of Saudi Chambers of Commerce, said the sector is facing major difficulties, and that turning a deaf ear to the problems will only make matters worse.
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