Salik increase won't affect us -Dubai's logistics firms

The RTA will be dropping the daily Salik cap from July 15.
Logistics, NEWS


Dubai’s express logistics firms have revealed they do not have any plans to raise their pricing tariffs in response to yesterday’s decision by the emirate’s Roads and Transport Authority (RTA) to drop the daily cap on Salik charges.

The daily cap on Salik charges will be scrapped from July 15, the RTA announced. Currently the maximum charge for motorists is Dh24 per day.

But, express logistics firms such as DHL and TNT Express have revealed their delivery networks are already designed to minimise travel through Salik points.

“The removal of the Salik cap will have marginal effect on our operational cost,” said Frank-Uwe Ungerer, Dhl’s UAE country manager. “In our current business model, each courier operates within a dedicated geographical area, this way they are always close to the customers and there is no need to pass through Salik gates so often.”

While James Edgeworth, sales and marketing director - Middle East for TNT, added: “TNT operates state of the art GPS systems and mobile worker in cab devices, with this technology we are able to plan pick-up and delivery routes to gain efficiencies and avoid crossing Salik gates multiple times per day. Generally speaking courier routes are predefined with couriers working in a particular area which reduces the impact of Salik gate changes.”

The RTA said through the released statement that the new changes have been implemented to encourage drivers to use alternate routes. It also added that the change would affect only five percent of Salik users. “The RTA stressed that the decision would only affect a tiny segment of toll gate users and the ordinary user of these gates would not feel an effect for this decision since 95 per cent of private vehicles do not pass under Salik gates more than six times a day,” the statement said.

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