Sharjah: Companies in the logistics industry will feel the pinch once Sharjah's toll system begins charging trucks using Al Dhaid Road.
Trucks with a cargo weight exceeding 49 tonnes will be charged Dh100, with a further Dh10 charge for every extra tonne, effective May 1.
While truck drivers will probably suffer from the time spent on long trips, their employers will feel the pain in their pockets as their costs rise.
"If it is electronic then it is not going to be a hindrance but cost-wise, it will be a problem," the manager of UAE cargo company said on condition of anonymity.
He said that now was not the time for government to be increasing any charges or fees.
He argued that authorities should be giving their industry more leeway.
The rise in transport costs may also result in clients bearing the toll charges also as it will mean higher charges for logistics' services.
The additional costs expected to arise from the toll system will not only affect logistic companies, the manager said.
"We will have to pass on the additional costs to clients, who are already [against] any more charges at this time and react very badly. Now we have to think whether we absorb this cost as well or threaten ourselves with our customer looking for alternative options," he said.
Meanwhile, those businesses not serving the northern emirates from Dubai or Abu Dhabi will escape the extra charges.
Alternative routes
"It will be a good thing to cut down heavy vehicle traffic on the route. They will have to find other routes," Keith Holdsworth, logistics manager at the Dutco Group, told Gulf News.
He said the tollgate would not affect the company, as it did not use trucks for transportation but only buses.
Al Dhaid Road connects the north coast of Sharjah and leads straight all the way to Masafi, a city near the east coast of the UAE.
