Tuesday, September 03, 2013

New Land Transport Act made effective in UAE

The new Land Transport Act in UAE has been made effective in co-ordination with all concerned Federal and local authorities.

The implementation of the law aims to keep pace with economic growth of the UAE. The law will be implemented in phases, with the first phase aimed at licensing and registering transport companies, while final phase will be about registering trucks at border entry points.

According to Dr. Abdullah bin Mohammed Belhaif Al Nuaimi, Minister of Public works and Chairman of National Transport Authority (NTA), the NTA offices are ready to issue operating licenses for companies based on terms and conditions of the law.

The NTA hopes that an average of 2500 transactions will be carried out at border entry points, with time for each transaction to be reduced to 7 minutes from earlier 15 minutes with electronic linkage between NTA and some 25 federal and local departments involved in implementation of new law.

The new Law establishes certain rules for carrying passengers and goods between UAE and other countries. Some highlights of the law are:

  • It emphasizes that no land transport business be practiced without a licence from NTA.
  • The license applicant need to be a UAE national, while the transport vehicle should be equipped with safety gear and should meet all technical conditions stipulated by the authority. 
  • The licence applicant should be owner or hirer of land transport vehicle based on type of activity to be licensed pursuant to the conditions determined by Executive Regulations.
  • The new law will upgrade the land transport system by determining the requirements for practicing land transport business and international transport operations of goods and passengers.
  • It will regulate the establishment of companies involved in business of land transport and establishment of branches of these companies, guarantor and auto clubs.
  • The law will regulate the procedures of granting and renewal of licences, apart from starting the application and approving the operation cards of transport vehicles, determining conditions of drivers of land transport vehicles and mechanisms of issuing customs transit cards as well.

NTA will also launch a hotline shortly, for responding to queries of mechanisms about compliance with new law.

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