TIR Journeys Now Operational in the Kingdom of Saudi Arabia

In close collaboration between national guaranteeing associations, Customs Authorities and the IRU, a TIR transport operation starting from Dubai, United Arab Emirates to Amman, Jordan via the Kingdom of Saudi Arabia successfully concluded. This historical moment is the starting point of a new journey, providing an important border crossing solution for transport and logistics operators in the Gulf region.
Taking only four days to make the trip, the TIR transport knocked days off of the usual journey time of seven days when done without the TIR guarantee.
‘The start of TIR operations in the Kingdom represents an important step for Saudi customs towards the harmonisation and facilitation of customs transit procedures between TIR contracting parties. TIR will reduce the transport costs as well as the trucks waiting time and facilitate the transit movements in the Kingdom, which will maximise the benefits and improve the investment attractiveness of this sector,’ stated H.E. Mr Ahmed Al Hakbani, Governor of Saudi Customs.
‘One of the pillars of Saudi Arabia vision for 2030 is making the Kingdom a logistics centre connecting Asia, Africa and Europe. This objective will be reached by adopting international standards such as the TIR convention, considered as one of the systems contributing to facilitating international trade,’ added H.E. Mr Ahmed Al Hakbani.
Some of the other benefits TIR offers to transport and logistics companies in the Kingdom include:

  • Time savings through the Electronic Advance Declaration facility, reducing the waiting time at the Saudi Arabia border by an average of six hours
  • One single guarantee document for the entire itinerary represented by the use of the TIR Carnet
  • Eliminating the need of customs tax and duty deposits through the cover of the TIR international guarantee chain
  • Secured load compartments approved by customs authorities
  • The permitted use of sheeted transport compartments (swap bodies) through KSA when using TIR

‘The success of this latest transport has shown a very strong business case for TIR use along this route and proves once more TIR’s ability to link countries and drive trade. Establishing similar TIR corridors throughout the Middle East has the potential to revolutionise goods transport in the region,’ noted Umberto de Pretto, IRU’s Secretary General.

Saudi Arabia has a long-term plan – as part of its wide-ranging Vision 2030 strategy – to reduce the economy’s reliance on oil and the state by boosting investments into the private sector. Vision 2030 essentially continues, in amplified and expanded form, policies that the country has had in place for some decades. These have had some successes in generating non-oil growth. Vision 2030 implies a degree of social liberalisation to enable the growth of the entertainment and tourism industries, as well as extensive reforms in the education system, traditionally a stronghold of Saudi Arabia’s religious clerics. If followed through, this would transform relations between the state and its citizens, politically and socially, as well as economically.

IRU is the world road transport organisation, promoting economic growth, prosperity and safety through the sustainable mobility of people and goods. As the voice of more than 3.5 million companies operating mobility and logistics services in over 100 countries, IRU leads solutions to help the world move better.

TIR is a globally applicable international customs transit and guarantee system, created in 1948 by IRU, who administers the system under UN mandate since 1949.
Today, over 70 Contracting Parties use TIR, with approximately one million TIR carnets issued every year to over 10,000 transport and logistics companies and 80,000 trucks operating under the system across the world on a monthly basis.
Trucks operating under a TIR carnet use one single international guarantee from a journey’s start to finish – even for intermodal transports. It is an easy, secure and reliable way to move goods across borders, be it straightforward bilateral transports between neighbouring countries or more complex multi-border journeys.

IRU inform.

 

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