On 10 January 2024, the Ministry of Transport issued Decree No. 654 of 2023, regulating the land transport of goods and freight-forwarding using information technology, domestically and internationally.
Mirroring the impact of the Ride-Hailing Law No. 87 of 2018, which streamlined the operations of industry giants like Uber and Careem, the Land Transport Regulatory Authority Regulations (“LTRA Regulations”) are intended to regulatethe logistics landscape. Key highlights under the LTRA Regulations include, for example:
- Focus on Information Technology: special emphasis is placed on integrating information technology into logistics operations, covering e-market management for shipping services, transport delivery, and participatory shipping service activities.
- Mandatory Licensing: the relevant entities must obtain licensing to operate within the sector, ensuring compliance with the newly established standards.
- Transportation Document Requirements: each shipment must be accompanied by a Transportation Document issued by either the Transporter or the Freight Forwarder, and a fee to be paid to the LTRA per Transportation Document.
- Negotiated Coordination: a new provision facilitates negotiations between the LTRA and companies seeking licensure, allowing flexibility in meeting the sector’s diverse needs.
Introducing the LTRA Regulations aims to raise operational standards and promote compliance. Businesses, especially those operating in e-commerce and logistics, are advised to consider the implications of these regulations. This involves assessing what the “use of information technology” means, how it may apply to your business model and how you may need to align your operations with the new requirements.