India and the Maldives on Monday launched a cargo ferry service connecting the ports of Tuticorin and Cochin with Malé with the aim of reducing costs and the time required to transport goods between the two countries.
The launch of the ferry service came a day later India granted a concessional 10-year loan of $ 250 million to the Maldivian government as budget support to mitigate the economic impact of the Covid-19 pandemic. India will subsidize the early-stage ferry service with $ 3 million, authorities said.
The maiden voyage of the ferry service was launched during a virtual ceremony by India’s Minister of State for Shipping Mansukh Mandaviya and Maldives Minister of Transport and Civil Aviation, Aishath Nahula. The ceremony was joined by representatives from the ports of Tuticorin and Cochin and officials from Maldives Ports Limited and the Maldives Ministry of Foreign Affairs.
The MCP Linz freighter, operated by the Shipping Corporation of India (SCI), will travel from Tuticorin to Cochin and then to the port of Kulhudhuhfushi in the northern Indian Ocean archipelago on September 26 before heading to Malé on September 28.
The vessel can carry 380 TEU and 3,000 metric tons in bulk cargo. The response time for the trips will be 10 to 12 days and the service will operate twice a month. “This vessel provides direct cargo connectivity between India and Maldives in a predictable and affordable way for the first time, and will reduce costs and time for traders in both countries,” the Indian mission in Male said in a statement.
Officials said the ferry service aims to improve the trade partnership and improve logistics on both sides. Although the two sides have traded for centuries, India is currently only the Maldives’ fourth-largest trading partner, after the United Arab Emirates, China, and Singapore.
“Along with the expansion of Hanimaadhoo Airport through an Indian credit line, connectivity to the northern port of Kulhudhuhfushi via cargo ferry service will support the economic development of the northern Maldives and facilitate investment in tourism and other sectors, “said an official who declined to be named.
In addition to expanding the markets of small and medium-sized companies in India, the ferry service will provide an opportunity for Maldivian exporters of tuna and other marine products to enter the Indian market and explore the possibility of shipping their goods to Europe via the ports of Cochin and Tuticorin. officials said.
The two sides had signed a memorandum of understanding on the ferry service during Prime Minister Narendra Modi’s visit to the Maldives in June 2019. In his speech to the Majlis or Parliament during that visit, Modi had announced India’s commitment starting the ferry service.
A team from SCI visited the Maldives in July last year to conduct preliminary studies and the Federation of Chambers of Commerce and Industry of India (FICCI) carried out a feasibility study on the freight ferry service during March-April, It found India’s share of the top 27 items imported by Maldives to be well below potential.
The decision to launch the freight ferry service between the two parties was announced during a virtual meeting between Foreign Minister S Jaishankar and Foreign Minister Abdulla Shahid on August 13.
The freight ferry service also reflects synergies between the Indian government’s “neighborhood first” policy and the Maldives’ “India first” policy under the leadership of President Ibrahim Solih, the officials said.
Addressing the launch ceremony, Mandaviya said that the ferry service will boost bilateral trade, provide a cost-effective alternative means of transporting goods and help ensure food security in the Maldives. Nahula said the ferry service will decentralize economic activity and open a new corridor for trade, development and tourism.
.
