Mall operators free to decide on car parking fees, says RTA

The RTA has not intervened in mall operators' decision to charge parking fees, officials said yesterday.

Abdul Mohsin Ibrahim Younes, CEO of Strategy and Corporate Governance at RTA, said the new parking system introduced by mall operators are based on studies by investors. He stressed the land in which the malls are situated are private property.

"We have not intervened in their decision with regards to the fees," he told a media gathering in Dubai Press Club. "At the outset, we don't want you to use your car. That is why there will be public buses, which will cover 95 per cent of Dubai. Why park your car in the Mall of the Emirates?"

His comments came after Mall of the Emirates and Deira City Centre, both owned by Majid Al Futtaim, last week said that parking would be free during the weekend. The malls have also extended free parking during weekdays from three to four hours.

Younes said currently there are nine million individual trips daily and that only six per cent of the population is using the mass transport system.

He said Dubai is aiming at increasing this figure to 30 per cent by 2020. As much as 17 per cent is expected to come from Metro usage while the remaining will be divided between buses and maritime taxis/buses.

"Admittedly, the number of trips will double by 2020, but the 30 per cent target will definitely help in easing traffic congestion," said Younes.

Dubai's serious traffic congestion is estimated to have been costing the emirate about Dh4.6 billion a year.

Essa Aldosary, CEO of Public Transportation, RTA, said under the fish bone concept, Dubai should be well served by an integrated public transportation system.

Aldosary said everyday, 60,000 to 70,000 cars run on Dubai roads. "How will Dubai continue to look like with those number of cars?"

He said 90 per cent of Dubai's urban and semi-urban areas would be covered by 2,000 buses by the end of next year. The maritime public transport, which carry 20,000 passengers per day, will also increase its capacity.

Metro's Red and Green Lines, whose capital expenditure increased by 75 per cent, are heavily subsidised. The train's income from fees and advertising streams are expected to cover only the operational costs. Investments on the other hand are to be recovered after 30-35 years.


Car registrations down by 2%

The volume of car registration has dipped due to fewer cars this year, a senior official said.

Growth of new registrations have slowed down to about two per cent in the first nine months of 2009 compared to the 17 per cent increase in 2008 over 2007, said Ahmed Bahrozyan, CEO of RTA Licensing Agency.

"Vehicle registration has been impacted by the sales of cars," he said. "Last year, the fleet of cars registered increased by 17 per cent. In the first nine months of this year, we have not seen more than two per cent."

He said there is no plan to increase registration fees. "I don't think we need such a policy."

Bahrozyan said although the credit market has eased, securing an automotive loan in the UAE remains relatively difficult. This, combined with the slowing economy had caused drop in car sales, he added.

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