Dubai unveils AED 16.8 billion land transport strategy

The Roads and Transport Authority (RTA) has unveiled the details of the Dubai Commercial and Logistics Land Transport Strategy 2030.

It aims to double the direct contribution of the land transport and logistics sector to the emirate's economy to AED 16.8 billion, reduce carbon emissions by 30 per cent, increase the rate of technology adoption by 75 per cent, and improve operational efficiency by 10 per cent.

The strategy focuses on regulating and governing the commercial transport sector in the emirate, identifying growth opportunities as well as prospects for investment and partnerships with the private sector.

It considers the application of international best practices and increasing the competitiveness of the sector compared to developed countries to achieve three main objectives: cost efficiency by measuring the total cost per km, adopting modern technology in infrastructure and the average age of the fleet, and achieving safety and security by reducing the annual accident fatalities of the sector.

"The new strategy contributes to achieving RTA's strategic goals by removing barriers to doing business, simplifying regulations and requirements, upgrading the fleet to zero-emission vehicles, improving driver behaviour and vehicle performance by raising the efficiency and safety of operational operations, supporting SMEs in the business market, providing affordable technologies, and enhancing the sector's readiness to accelerate the adoption of new technologies for future modes of transport," said Mattar Al Tayer, Director General and Chairman of the Board of Executive Directors of the RTA.

Unveiling of the Dubai Commercial and Logistics Land Transport Strategy 2030. Along with a roadmap and associated projects, this strategy has been approved by the Dubai Executive Council, chaired by His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of… pic.twitter.com/B9oY2GUWRa

— RTA (@rta_dubai) June 2, 2024

The commercial transport sector in Dubai is experiencing significant economic growth, mainly due to the rapid expansion of e-commerce in the last two years.

There are currently 351,000 registered commercial vehicles and 9,699 companies in this sector. Over the past five years, the commercial transport sector has seen an annual growth rate of 34 per cent.

In 2021, the direct contribution of this sector to Dubai's economy was AED 8.5 billion, accounting for 3 per cent of the emirate's GDP in 2022. Additionally, the sector has created approximately 242,000 jobs.

The strategy has identified 17 projects that will contribute to supporting the sector's and companies' growth, increasing its competitiveness through digital markets and platforms.

The list of projects to be implemented includes developing digital platforms supporting the commercial transport and logistics sector, value-added permits, no objection certificates, heavy freight services platform, driver behaviour monitoring, aftermarket platform, construction equipment rental platform, road freight data centre, and updates to heavy and light truck fleets.

The strategy has also identified projects such as the application of tachographs for heavy trucks, the provision of autonomous vehicles and towing trucks, the commercial transport and logistics forum, membership in relevant international federations, and the creation of the National Committee for Small Vehicles.

Dubai's commercial transport and logistics strategy aligns with six existing specialised strategies, including the Traffic Safety Strategy, the Self-Driving Transport Mobility Strategy, the Zero-Emission Public Transport Strategy, the Asset Strategy, the Investment Strategy, and the Digitization Strategy.