Dubai unveils 17 projects to boost transport sector
Commercial and Logistics Land Transport Strategy to contribute Dh16 billion to economy
Dubai: The Roads and Transport Authority (RTA) in Dubai on Sunday unveiled a new land transport logistics strategy hinged on 17 projects to raise the sector’s contribution to the emirate’s economy by Dh16.8 billion in six years.
The goal of the strategy is to double the direct contribution of the land transport and logistics sector to the emirate’s economy to D16.8 billion, increase the rate of technology adoption in the infrastructure by 75 per cent, reduce carbon emissions by 30 per cent, and improve operational efficiency by 10 per cent.
“The new strategy aligns with the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai. It aims to enhance Dubai’s global competitiveness as a leading financial, business, and economic hub and support the Dubai Economic Agenda [D33] to position Dubai as one of the top three economic cities in the world,” Al Tayer said.
“The strategy focuses on regulating and governing the commercial transport sector in the emirate. It aims to identify developmental and innovative opportunities in the land-based commercial transport and logistics sector and to ensure that the sector’s objectives, legislation, and policies are incorporated through various implementable projects and programs. Additionally, it seeks to identify prospects for investment and partnerships with the private sector.”
Diverse projects
The Strategy 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:
Three targets
Al Tayer explained that the Strategy was developed in collaboration with strategic partners, private businesses, distributors, and retailers in commercial transport. The strategy considers the application of international best practices and increasing the competitiveness of the commercial transport sector compared to developed countries to achieve three main objectives, namely:
• cost efficiency by measuring the total cost per kilometre
• adopting modern technology in infrastructure and the average age of the fleet
• achieving safety and security by reducing the annual accident fatalities of the sector.
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.
Growth indicators
The commercial transport sector in Dubai is 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 per cent.
In 2021, the direct contribution of this sector to Dubai’s economy was Dh8.5 billion, accounting for three per cent of the emirate’s GDP in 2022. Additionally, the sector has created around 242,000 jobs.
Strategies alignment
Dubai’s commercial transport and logistics strategy aligns with six existing specialised strategies, including the Traffic Safety Strategy, the Self-Driving Transport Mobility Strategy, the Zero-Emission Public Transport Strategy, the Asset Strategy, the Investment Strategy, and the Digitalisation Strategy.
