Public Transportation Fare Policy

Definitions

  • Definitions refer to the following terms - wherever they appear in this policy - the meanings indicated next to them unless the context requires otherwise:

    • 1. The Kingdom: The Kingdom of Saudi Arabia.

    • 2. The Authority: The General Authority for Transport or one of its branches.

    • 3. Fares: The cost of using various means of transport.

    • 4. Public transport within cities: The transportation of individuals via a means of transport (buses, trains, marine vehicles) operating on a defined route in a specific geographical area.

    • 5. Large cities: Cities with a population of one million or more.

    • 6. Medium and small cities: Cities with a population of less than one million.

    • 7. Suburbs: Neighboring cities that residents commute between daily for work or study purposes.

    • 8. Fixed fare: The fare for using public transport is fixed regardless of the distance traveled.

    • 9. Distance-based fare: The fare for using public transport varies according to the distance traveled.

    • 10. Owner entity: The entity that owns the public transport project.

    • 11. Operator: The entity that provides public transport services.

    • 12. Service initiation fees: The initial amount for taxi services.

    • 13. Distance fees: The amount calculated for each kilometer for taxi services.

    • 14. Waiting fees: The amount calculated for each minute of waiting time when the vehicle is stopped, or the vehicle's speed is less than 20 km/h.

The Introduction

  • The Transport General Authority seeks, through the fare determination policy, to regulate the fares for the use of public transport, ensure their availability at a good level and reasonable cost for passengers, and achieve financial sustainability for transport systems in the long term. This is based on the Authority's regulation issued by the Council of Ministers Decision No. (323) dated 14/9/1434 AH and its amendments, which explicitly states in paragraph three of Article Four that the Authority is responsible for "proposing public policies and legislation related to public transport and supervising their implementation after approval." Additionally, paragraph eleven of Article Four of the aforementioned regulation states that the Authority is responsible for "proposing a mechanism for regulating public transport fares and the principles of their pricing, and monitoring compliance with them after the fares are approved by the competent authorities." Based on the Public Transport Law on Roads issued by Royal Decree No. (M/25) dated 21/6/1397 AH, the competent authority is the Ministry of Transport, as the law states in Article Twenty, paragraph six, that one of the powers of the Ministry of Transport is "to determine the various fares for transport by all means except for air transport."

  • This report summarizes the approved policy for determining the fares for the use of public transport for passengers in the Kingdom, including patterns of rail, land, and maritime transport within and between cities, and obliges the Transport General Authority, the project owner or operator, to apply this policy when developing related policies and structuring the fares for public transport projects. 

Strategic Objectives

  • The Transport General Authority aims, through the policy of setting fares for the use of public transport, to achieve the following objectives:

    • • Encourage the use of public transport.

    • • Ensure fare suitability for users.

    • • Enhance the financial sustainability of the systems and improve operational efficiency.

    • • Support ease of use and integration between public transport systems.

Chapter 1: Public Transport within Large Cities

Paragraph 2: Wage Structure

• The integration of wage systems among different means of transport must be considered to achieve a unified system that allows the passenger to use the same ticket for more than one means of transport until reaching the final destination.
• A flat rate pricing system should be used for short-term public transport fares, while a distance-based pricing system (such as: Zonal Distance-based) should be used for long-term fares.

Paragraph 3: Wage levels and their suitability for users

  • • The cost of using public transport for basic commuting (work or study) should not exceed (5%) of the average daily income of the household, assuming that (50%) of the household members use public transport daily at a rate of two trips per person.

  • • The following discounts should be applied to the fares for using public transport (economy class):

    • - Children under (6) years: Free.

    • - Students from (6 to 18 years): 50% discount.

    • - Seniors (60 years and above): 50% discount.

    • - Persons with disabilities plus one companion: 50% discount.

    • - Cancer patients plus one companion: 50% discount.

  • • The authority must be notified when the owner or operator of the project wishes to offer additional discounts, benefits, or marketing campaigns related to fares unless they are mentioned in the fare proposal or in the periodic review of fares according to paragraphs twenty-nine and thirty of Chapter Six.
     

  • It is noted that these requirements represent the minimum discount rate for the targeted categories, and they must be granted to both citizens and residents in the Kingdom. The owner of the public transport project may increase the discount rate or the targeted categories according to the allocated budgets and what they deem appropriate to encourage the use of public transport. Additionally, relevant entities may sign agreements with the owner of the public transport project to provide their employees with additional discounts and offers.

Paragraph 4: Types of Tickets

• The operator or the entity owning the public transport project is obligated to provide multiple ticket options to encourage the use of public transport, including but not limited to: single journey ticket, monthly ticket, and discounted seasonal tickets.

Paragraph 5: Ticket Regulations

  • • Ticketing systems and point of sale must be available and easily accessible and usable, with the following minimum requirements to be met:

    • • Ticket Purchase: via the website, electronic applications, ticket vending machine, or ticket purchase office at the station.

    • • Payment: Cash or through electronic payment methods.

    • • Ticket: Electronic or paper.

    • The system language shall be in Arabic and English.

  • *The operator or the owning entity is exempt from this paragraph in the case of providing free transport services.

Chapter 2: Public Transport within Medium and Small Cities

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