Railway Law

The following terms and expression phrases, whenever mentioned in this Regulation, shall have the meanings set forth therein unless otherwise specified:

The Ministry undertakes the following tasks:

1. Introducing strategies, policies and plans for the development of the railway transport sector, and monitoring the implementation thereof after approval in accordance with the regulatory procedures.
2. Representing the Kingdom in local, regional and international entities in the field of railway transport, and it may grant the Authority or other sectors the authority of such representation. 
3. Coordinating and consulting with the Authority to develop the railway transport sector
4. Encouraging research and development activities in the railway transport sector 

The Authority, in addition to its functions in the regulation, shall undertake the following:

1. Tendering concessions and bids related to the railways implementation, maintenance, facilities, and services, and the completion of all necessary procedures.
2. Supervising the railways implementation and the facilities thereof, and developing it
3. Determining and categorizing the types of railway services, the required conditions for licenses and issue the Licenses. 
4. Ensuring the provision of railway services to beneficiaries at reasonable prices , subject to the provisions of the concession contracts 
5. Monitoring the licensees and the concessionaires' implementation of the provisions of the law and its implementing regulations, and the tasks assigned to them, including safety and security requirements. 
6. The concessionaires shall be obliged with the requirements of the concession contracts relevant to the railways.

The Authority, in practicing the powers and functions entrusted to it, shall endeavour to achieve the following objectives:

1. Promoting  the use of railways in the transport of freight and passengers  
2. Developing the network within the national transport strategy 
3. Increased efficiency from  those licensed to provide railway services  
4. Promoting competition in the provision of railway services for the benefit of its users 
5. Imposing minimum  restrictions on licensees  
6. Removing any difficulty that the railway transport sector may encounter

1. The area where the railway line is located and the area on both sides of the railway is deemed public property of the state, and shall be called the railway right of way. After coordination with the relevant authorities, the Board shall determine the railway right of way distance. Such distance shall not extend beyond two hundred (200) metres from the centre of the railways on both sides, in accordance with the operational, security and safety needs and technical requirements of the railways.
2. Any entity that supervises public facilities or networks, and intends to establish and extend these lines or networks across the railway right of way or at the intersections therewith, shall obtain the approval of the Authority before constructing or extending these lines or networks.
3. Utilities service providers that intend to establish or extend public facilities or networks across the railway shall abide by the technical rules and requirements set forth by the Authority.

No person may provide the services of a railway without obtaining the required license from the Authority

License application shall be submitted to the Authority in accordance with the procedures specified in the Regulation. The Authority shall decide on the request within sixty (60) days from the date of the request completion. The implementing Regulation shall specify the requirements, terms, and conditions of granting the license.

Obtaining a license from the Authority shall not be required for anyone who establishes or operates an internal private railway within a facility not connected with the network.   

The Authority shall impose the fees payable at the time of submitting, issuing or renewing a license application and the Board shall determine such a fee.   

The Regulation shall specify the terms and conditions as well as the regulations for the provision of railway services  

A licensee may not assign the license except after obtaining the approval of the Authority, in accordance with the terms and conditions as well as the procedures prescribed by the implementing Regulation. 

The Authority may amend the licensing requirements in the following cases:

1. If the license states that the Authority may amend the terms and conditions  
2. If the licensee submits an amendment request 
3. If the amendment is based on the amendment of international regulations or agreements 

The Implementing Regulation shall specify the procedures necessary for amending the license terms and conditions 

As specified in the Implementing Regulations, a licensed person shall be prohibited from exploiting his dominant position to engage in any activity or conduct which constitute an abuse of another party. . The licensee shall also be prohibited from concluding any agreement or making any arrangement that shall prejudice, restrict or distort the principle of competition. The Authority shall, at its request or on its own initiative, detect any violation in this regard. The Implementing Regulation shall specify the procedures to be taken by the Authority in respect of such violations  

After obtaining the approval of the Authority, the licensee shall have the right to conclude an agreement with any other person or licensee under which he may use the railway or facilities in accordance with the terms and conditions agreed between them, provided that the Authority is provided with a copy of the agreement concluded and any amendment that may occur within seven days of the date of being signed or amended. 

If the licensee requests or another person requests a license from a licensee, and fails to reach such agreement, for the use of a railway line, its services, a facility or the amendment of a previous agreement; then, the applicant may apply to the Authority for its decision in accordance with the procedures specified by the Implementing Regulation.

The concessionaire, the licensee, and railway users shall abide by the standards of the security and safety of railway and facilities. The Authority shall monitoring their commitment.  and shall determine the necessary procedures in the Implementing Regulation after coordination with other related authorities.  

The Authority may request any person or entity to provide it with the information it needs in order to ensure the security and safety of the railway and its facilities  

Any other party  that makes arrangements or actions which may affect the safety and security of railways or facilities shall coordinate with the Authority in advance in this regard

With the exception of construction works and the provision of services licensed on railways, any of the following acts are prohibited:

1. The use of a railway or part thereof for other than its intended purpose 
2. The existence of persons, vehicles, machines or animals within the railway right of way
3. Crossing a railway or its bridge or leaving livestock  to cross or pass through, other than the designated places 
4. Crossing or cutting the protective fence of the railway 
5. Cutting, damaging, using, or utilizing cables and extensions of the railway, whether on the ground or underground
6. The seizure of whole or part of the railway right of way with the intention of possession, usufruct, or use in any manner whatsoever 
7. Prevention or obstruction of malfeasance personnel from performing their duties 
8. Cutting, dismantling, taking a part of, or stealing the rail line, or any of its facilities, equipment, or part thereof, or intentionally damaging any of the same 

The Authority shall technically investigate any accident or incident related to the railways, services, or facilities thereof, in accordance with the procedures specified by the Implementing regulation  

The Implementing regulation shall specify the obligations of the licensee, the concessionaire, or the user of the railway line towards the Authority in the event of any accident or incidents.

The Authority’s employees – who have been designated to technically investigate the accident or incident - may enter any land, building, or facility related to it, whenever the interest of the investigation so requires. They may also inspect any mobile or other equipment if it has a direct or indirect relationship with the accident or incident. If it is necessary to enter any residence, this shall be according to the regulatory procedures.  

The Authority shall introduce concession contracts relating to the establishment of railways or their services, in accordance with the relevant regulations. Concession contracts shall include the obligations and rights of the concessionaire   

The Authority may grant the concessionaire to access to the land on which the railway lines are constructed, the right of way and facilities, in accordance with the regulations and the terms and conditions of the concession contract  

Concession contracts may contain provision relating to government support during the term of the concession contract. 

The concessionaire or the licensee shall carry out the work of execution and maintenance for any subject related to the railway or facility project, in accordance with the provisions of the concession contracts and those specified in the Implementing Regulation  

Without prejudice to the obligations of the concessionaire or the licensee, the person contracted with the concessionaire or with the sub-licensee to perform any activity related to the railway or facility - shall undertake the execution and maintenance work in accordance with the relevant regulations and those specified in the Implementing Regulation  

If the activity of the concessionaire or the licensee requires the temporary use of the lands or properties of others, the Authority can temporarily possess this property in accordance with the Law of Eminent Domain and Temporary Taking of Property in accordance with other relevant regulations, and the concessionaire or licensee shall bear the consequences of fair fare or compensation thereof.

Any of the following actions constitute a violation of the provisions of this Regulation:

1. The provision of railway services without obtaining a license
2. Violation of a requirement or decision of the Authority
3. Providing false, incorrect or misleading information to the Authority
4. Violation of the security and safety requirements and conditions prepared or adopted by the Authority
5. Failure to provide the Authority with copies of a railway or a utility usage agreements and amendments thereof 
6. The negligence /failure to report an accident or an incident
7. Abuse of dominant position, and entry into an agreement or arrangement that shall prevent, restrict or distort the principle of competition
8. Failure to provide the information requested by the Authority in accordance with its oversight role in the prevention of anticompetitive conduct  
9. Obstructing the technical investigation specialist
10. Violation of any of the provisions of this law or its Implementing Regulation

Without prejudice to any harsher penalty stipulated by another law, any person who violates this Law or its Implementing Regulation shall be punished by one or more of the following penalties:

1. A fine not exceeding ten million riyals for the first time and not exceeding twenty million riyals if the violation is repeated. The fine shall be determined according to the violation committed and the extent of the seriousness thereof in each case, in accordance with the provisions prescribed by the Regulation  
2. Stop the activity in part or in whole for a period not exceeding one year
3. Termination  of the license

1. Without prejudice to any more severe penalty provided for in another Regulation, and notwithstanding the provision of Article Twenty Nine of the Regulation, any person who commits any of the violations set forth in Article( Eighteen bis), paragraphs (1,2,3,4,5,6,7) of the Regulation, shall be punished by a fine not exceeding SAR 200,000.
2. Without prejudice to any more severe penalty provided for by another Regulation, and notwithstanding the provision of Article Twenty Nine of the Regulation, any person who commits any of the violations set forth in paragraph 8 in Article ( Eighteen bis)  of the Regulation, shall be punished by imprisonment for a maximum of two years and by a fine not exceeding 500,000 riyals .
3. The Regulation shall set a classification of the violations referred to in paragraph (1) of this Article and of the fine due to each of them, depending on the severity thereof.
4. If the violation is repeated, the fine shall double 
5. The Public Prosecution shall investigate and prosecute the irregularities referred to in paragraph (2 ) of this article 
6. The violator of any of the violations referred to in this Article shall pay all the expenses and fees necessary for the removal of the injury caused by his act, the reinstatement of the situation and compensation for the losses resulting therefrom.
7. As per this article, the resolution issued of imposing a fine may include a provision stipulates that the decision of the penalty is to be published in a local newspaper at his residence area at the expense of the violator. If there is no newspaper at his residence area,  then in his nearest district, or publish it in any other appropriate means, depending on the type  of the violation committed, its severity and its impact, provided that the publication is to be done after the definitive judgment, or the statutory period specified  expired or the decision is affirmed  by the competent court. 

1. The President shall identify the employees who shall responsible for investigating  violations, as well as those in charge of technical investigation of the accident or incident, and also from the authority, the Higher Authority for Industrial Security, and other government entities if needed
2. The employees stipulated in Paragraph (1) of this Article have the right to view the books and records of the concessionaire, the licensees and the beneficiary of the service, and obtain copies of the required documents.

If a violation is detected that requires urgent action, it may, by a decision of the President, take one or more of the following precautionary measures:

1. Force (the violator) to cease  the violation 
2. Partially or fully suspend activity for a period not exceeding six months

The decision shall be implemented from its date of issuance. The Authority shall refer the violation within two working days to the Committee composed in article (Thirty-Three) of this Regulation and it shall decide thereon within fifteen (15) days

If the Committee has not taken decision within this period or the relevant person has not accepted its decision; it may file a grievance before the Board of Grievances in accordance with its law. The enforcement of the decision does not stop grievance, and this does not prevent the person concerned from claiming compensation

If the penalties or precautionary measures entail any impact on rail transport, the Authority shall make the necessary arrangements to ensure that service continues temporarily for a limited period of no more than six months, renewable where necessary in accordance with the procedures specified by the Regulation

1. Pursuant to a decision of the Board, upon the nomination of the President, a Committee (or more) shall be composed of five members, including three non-employee in the Authority and two experienced persons. The President and Vice-President of the Committee shall take the decision
2. Membership term of the Committee shall be three years, renewable  
3. The meetings of the Committee shall be held in the presence of a majority of its members, including the President or the Vice-President. Decisions shall be issued by a majority of the members present. In the event of equivalence, the side with which the President voted shall prevail.
4. The Board shall determine the work rules of   the committee, procedures and remuneration of its members  
5. The committee shall have the following competencies :

1. Consideration of violations of the provisions of the Regulations and Rules and the imposition of the penalties provided for in Articles (Twenty-Nine) and paragraph 1 of (Twenty-Nine bis) of the Regulations, and grievance can be filed against such decisions before the competent administrative court.
2. Consideration of complaints arising in the railway transport activity submitted to the Committee against the concessionaire or licensees, or between a concessionaire, licensee and service beneficiary, or between the Authority and a licensee, provided that the Authority shall submit a solution to the complaint within a period not exceeding one hundred and twenty days from the date of submission. If no party is satisfied with the solution, or the period referred to elapsed, it shall have the right to submit his complain to the competent court of the dispute.

The Authority may agree to settle any dispute or disagreement between the licensee and the Authority by arbitration in accordance with the provisions of the arbitration law in the Kingdom.

This Regulation shall be issued by the Board decision within ninety (90) days from the date of the law publication 

This Law shall be effective after 90 days from the date of its publication in the Official Gazette  

This Law shall cancel any contrary provisions