Roads and Transport Authority (RTA) has announced the launch of its new Dubai Commercial and Logistics Land Transport Strategy 2030 aimed at doubling the direct contribution of the land transport and logistics sector to the emirate's economy to AED16.8 billion ($4.5 billion).

 

Unveiling this today (June 2), Mattar Al Tayer, Director General and Chairman of the Board of Executive Directors of the RTA, said it has identified 17 projects that will contribute to supporting the sector's and companies' growth, increasing its competitiveness through digital markets and platforms. 

 

The strategy focuses on using data and technology to support the development of companies with high potential, cooperating with the commercial transport sector to operate modern vehicles with better performance, and encouraging the adoption of innovative methods and future technologies. 

 

The list of projects to be implemented in the future 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, said Al Tayer.

 

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 also aims to reduce carbon emissions by 30%, increase the rate of technology adoption by 75% and improve operational efficiency by 10%, he stated.

 

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, explained Al Tayer.

 

"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," he added.

 

Along with a roadmap and associated projects, this strategy has been approved by the Dubai Executive Council, chaired by Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Executive Council. 

 

"The goal of the strategy is to double the direct contribution of the land transport and logistics sector to the emirate's economy to AED16.8 billion, increase the rate of technology adoption in the infrastructure by 75%, reduce carbon emissions by 30%, and improve operational efficiency by 10%," said Al Tayer.

 

According to him, the Strategy was developed in collaboration with key partners, private businesses, distributors, and retailers in commercial transport. 

 

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

 

Dubai's central position as a logistics hub for shipping and distribution in the region has contributed to this growth.

 

"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 a compound annual growth rate of 34%. In 2021, the direct contribution of this sector to Dubai's economy was AED 8.5 billion, accounting for 3% of the emirate's GDP in 2022. Additionally, the sector has created approximately 242,000 jobs," he added.-TradeArabia News Service