On September 21, 2020, the first ever Cargo Ferry Service, the MCP Linz, was jointly launched between India and the Maldives, which is considered as a new chapter, in connectivity initiatives in the Indian Ocean Region. The vessel is expected to arrive in Kulhudhuhfushi Port in north Maldives on September 26 and the capital Male on September 28. It is a combination vessel, capable to carry 380 TEUs and 3000 MT on bulk cargo. The vessel will take a turnaround time of 10-12 days for its voyages. It will provide direct cargo connectivity between the two countries on a predictable and affordable basis for the first time, lowering costs and times for traders. It had been announced by PM Modi during his state visit to the Maldives in June 2019. India will subsidise the service at approximately US$ 3 million, whereas the Maldives Majlis (legislative body of the Maldives) has agreed to provide a 50 per cent reduction in custom duties for import items cleared at Kulhudhuffushi port.
Indians and Maldivians have traded for centuries. Yet, India is only the fourth largest trading partner of the Maldives today. So, the service is visioned as a key instrument to upgrade the trade partnership on both sides. It will underpin the economic development of northern Maldives and facilitate investments in many engines of prosperity besides the expansion of the Hanimaadhoo Airport. This service will also provide an opportunity to Maldivian exporters of tuna and other marine products to scope the vast Indian market.
The service will run twice a month, operated by SCI on a vessel with a capacity of 380 TEUs. India’s bilateral trade with Maldives has hovered around US$ 280 million annually and stood at US$ 286.85 million in 2019. Direct ferry will reduce transportation cost, provide a timely, short, and cost-effective means of transportation for goods from India to the Maldives. Since the ferry has a cold storage facility, it will also allow more exports of tuna fish and other marine food items in which the Maldives excels.
Courtesy: economictimes.indiatimes.com