Saudi Arabia is set to convert part of its highway system into toll roads to help make its transport system more efficient under its new reform programme. Draft plans for this project may be ready in six months, said a report.
The government aims to establish between four and six toll roads which private companies would operate in exchange for fees, according to Reuters.
Under this programme, Saudi government will let the private sector operate much of the kingdom's transport infrastructure, including airports and sea ports, with the government keeping a role as regulator.
Saudi Arabia, which does not have a significant auto manufacturing industry, is spending billions of dollars to expand public transport systems in the capital Riyadh and other big cities, and has imported thousands of buses in the last few years, said the report, citing the transport minister.
"We are developing the public transport system with a lot of buses, so we want to see how we can leverage this to develop domestic industry," remarked Nabeel Al Amudi in an interview on the sidelines of a recent business conference in Jeddah.
Saudi Arabia recently held preliminary discussions with foreign firms about manufacturing buses domestically and expanding public transport systems in the capital Riyadh and other big cities, he stated.
The manufacturing of the vehicles locally, he stated, would allow Saudi Arabia to save on import costs while creating jobs and expanding domestic industry.
The minister, however declined to name the companies with which the kingdom had been talking, reported Reuters.
Last May, German vehicle maker Daimler received an order from Riyadh for 600 Mercedes-Benz Citaro buses, the largest order for the vehicles in the history of its bus division. China Yuchai International last month announced the delivery of 800 buses to Saudi Arabia.
Saudi Arabia aims to develop six new toll roads
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