India launches first ever cargo ferry with Maldives: Milestone in Indian Ocean connectivity initiatives

On Monday the joint launch of the first ever Cargo Ferry Service between India and the Maldives opened a new chapter in connectivity initiatives in the Indian Ocean Region.

The virtual ceremony was attended by Mansukh L. Mandaviya, Minister of State for Shipping (Independent Charge) and Aishath Nahula, Minister of Transport and Civil Aviation of the Maldives, representatives from Tuticorin and Cochin ports, as well as officials from the Maldives Ports Limited (MPL) and the Foreign Ministry of Maldives.

The Cargo Ferry Vessel MCP Linz operated by the Shipping Corporation of India (SCI) will connect Tuticorin and Cochin ports in India with Kulhudhuhfushi and Male ports in the Maldives.

Officials stated that the vessel is expected to arrive in Kulhudhuhfushi on September 26 and Male on September 28. The MCP Linz is a combination vessel which can carry 380 TEUs and 3000 MT on bulk cargo and will have a turnaround time of 10-12 days for its voyages.

This vessel offers for the first-time direct freight connectivity between India and the Maldives on a predictable and affordable basis and will reduce traders' costs and times in both countries.

PM Narendra Modi announced India’s commitment to start a ferry service connecting India and the Maldives, in his address to the People’s Majlis during his State Visit to the Maldives in June 2019.

A team from SCI had visited Maldives in July 2019 to undertake preliminary studies and an MoU was signed between the Ministry of Shipping in India and the Ministry of Transport and Civil Aviation, Maldives, on the sidelines of the State Visit.

Thereafter, FICCI undertook a feasibility study on a cargo ferry service between India and the Maldives, earlier this year. The decision to commence the Cargo Ferry Service between the two nations was announced during a virtual meeting between Foreign Minister Dr. S. Jaishankar and Foreign Minister Abdulla Shahid on August 13. To begin with, India will subsidise the service at approximately $ three million.

Today, India is the fourth largest trading partner of the Maldives. The Cargo Ferry Service is visioned as a key instrument to upgrade the trade partnership and unfetter logistics on both sides.

In addition to extending the Hanimaadhoo Airport (through an Indian Credit Line), the connectivity of the Cargo Ferry Service to the northern port of Kulhudhuhfushi would underpin the economic growth of northern Maldives and encourage investment in tourism and other prosperity engines. In addition to the expansion of the MSME markets in India, the Cargo Ferry service would provide the ability to expand the MSME markets in India.

India 's Cargo Ferry Service is another commitment to connect Indian and Maldivian markets, unlock trade and investment capacity between the two nations, and reinforce people-to-people ties for mutual prosperity, officials said.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.