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Entry restrictions push cargo charges up in Riyadh
Published in The Saudi Gazette on 26 - 05 - 2012

Cargo charges jumped more than 100 percent in Riyadh due to the new traffic restrictions imposed on trucks entering the city. Transportation charges for a truckload of goods from Jeddah to Riyadh soared to SR5,000 from SR2,300 after the crisis erupted. Market sources indicated that prices would witness a further 20 percent increase, according to a report in Al-Riyadh Arabic daily.
Truck owners attribute the increase to the traffic authority's recent decision to restrict the entry of trucks into the city for six hours a day. They say the allotted time is insufficient to load and unload their cargo. Moreover, trucks are often stuck on the outskirts of the city for long periods of time as they wait their turns to enter the city. Traders said some of the trucks carry dangerous goods and toxic chemicals and exposure to the sun for prolonged periods of time can create health hazards. He added that they are incurring huge losses due to the damage caused to perishable goods.
Owners said that trucks transporting goods between Jeddah and Riyadh now take four days instead of two and this has increased their costs by 50 percent. Auda Mishal Al-Anzi, owner of a customs clearance company and goods transport company, said that the recent piling up of goods at Riyadh dry port and the delay in handling goods at Dammam port have forced many traders in the central region to turn to the ports on the Kingdom's western coasts. “This coincided with the traffic restrictions in the capital city. All these factors contributed to the current soaring cargo charges in Riyadh,” he said.
According to Al-Anzi, most truck owners now prefer to avoid a trip to Riyadh if it is possible. He expected an increase in the prices of consumer goods in the central region if traders add the additional shipment costs to the price of goods.
There is also a possibility for further increase in cargo charges in Riyadh if trucks continue refusing to take goods to the capital.
Al-Anzi said that while the Riyadh Traffic Department's recent decision to put strict restrictions on entry of trucks into the city has contributed substantially in easing traffic jams, it has also caused other problems.
“This (decision) has also triggered other major problems that should be addressed as soon as possible. Restriction of entry for trucks carrying consumer goods, such as foodstuffs and medicines, forces truck drivers to wait outside city gates for hours at a time and this results in the decaying of goods and medicines because they are not being immediately stocked in cold storages,” he added.
According to the recent directives issued by the Riyadh Traffic Department, trucks are allowed entry through the city's seven gates between 11 p.m and 5 a.m from Friday evening until Wednesday morning.
However, their entry time is extended to 12 hours over the weekend from Wednesday evening to Friday morning.


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