RIYADH — The 35-year monopoly of the Saudi Public Transport Company (Saptco) over the land transport sector in the Kingdom may soon come to an end after the government reportedly started considering the possibility of letting other companies offer such services. Business daily Al-Eqtisadiah reported on Tuesday that the Saudi Council of Competition asked the supreme authorities to consider opening up the sector to other companies. The council took the step to give Saptco competition. On June 3, 2013, the Council of Ministers took a decision to renew Saptco's franchise for three more years. The company now has less than a year to run. The sources believe that the end of Saptco's domination over the land transport sector will enable investors to enter into this market for the first time and increase competition for the benefit of the people. Saptco was established in 1979 with a capital of SR1 billion, which was increased to SR1.25 billion in 2006. The sources expected the Transport Ministry to start making plans and strategies to organize the market and to formulate mechanisms to introduce competition. Two years ago, the ministry announced that it was considering opening up the domestic transport sector to other companies to increase competition. Saptco was given the franchise to transport passengers in towns and cities, carry out international transport activities, transport pilgrims during the Haj and Umrah seasons as well as school students. It was also given the right to advertise on its buses.
