Indian Shipping Minister Mansukh Mandaviya and Maldives Transport and Civil Aviation Minister Aishath Nahula launch cargo ferry service
New Delhi: In a landmark development, a direct cargo ferry service between India and Maldives commenced on Monday.
This is the first time that a direct cargo shipping line is connecting the two neighboring countries.
Minister of State (Independent Charge) for Shipping Mansukh Mandaviya and Minister of Transport and Civil Aviation of Maldives Aishath Nahula jointly e- launched this service.
During its maiden voyage, a vessel with a capacity of 200 TEU and 3000 MT of break bulk cargo will sail from Tuticorin to Kochi today, from where it will proceed to Kulhudhuffushi port in North Maldives and then to Male port, the ministry of external affairs said in a statement here on Monday.
A new chapter added in India-Maldives relationship today.
— Mansukh Mandaviya (@mansukhmandviya) September 21, 2020
Flagged off direct cargo shipping service between Tuticorin-Kochi-Kulhudhuffushi-Male.
It ensures alternate & less expensive mode of transport along with promoting economic, social and cultural ties between 🇮🇳 & 🇲🇻 pic.twitter.com/ytrUkQCACL
It is scheduled to reach Kulhudhuffushi on September 26 while Male on September 29.
This ferry service, being operated by the Shipping Corporation of India, will run twice a month and will provide a cost effective, direct and alternate means of transportation of goods between India and Maldives.
It was first announced by Prime Minister Narendra Modi in June 2019 during his visit to Maldives.
On August 13, External Affairs Minister S Jaishankar during his virtual meeting with his Maldives counterpart Abdulla Shahid announced the commencement of a cargo ferry service.
Speaking on the occasion, Mr Mandaviya noted that this service is another milestone in the comprehensive bilateral relations between India and Maldives.
He mentioned that this direct cargo service will further cement the close ties between India and Maldives by enhancing people-to-people contact and boosting bilateral trade.
Minister of Transport and Civil Aviation of Maldives Aishath Nahula expressed deep appreciation for the launch of the service as reflective of the close ties of friendship and cooperation between India and Maldives.
The ferry will herald direct connectivity for movement of cargo between India and Maldives and thereby give a boost to bilateral trade.
Despite geographical proximity, India is currently only the 4th largest trade partner of Maldives.
🇮🇳 🇲🇻 Direct Cargo Ferry Service was jointly launched today by Minister of Transport and Civil Aviation @aishath_nahula & Minister of Shipping @mansukhmandviya. A key instrument to upgrade our trade partnership,the Ferry Service will also support eco. dvpt. of northern Maldives. pic.twitter.com/gsNBgOD1xX
— India in Maldives (@HCIMaldives) September 21, 2020
Maldives imports more from UAE, China and Singapore implying that bilateral trade with India is not commensurate with it’s potential.
India’s bilateral trade has hovered around $280 million annually for some years now and stood at $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 Maldives and thereby incentivize more trade between the two countries.
The ferry has cold storage facility, which will also allow more exports from Maldives of tuna fish and other marine food items which are a specialty of Maldives, the sources said.
In March-April this year, FICCI’s Kerala State Council conducted a study on the viability of a ferry service between India and Maldives. The study found that for 27 principal import items of Maldives, India’s share of imports is well below their potential.
Currently, maximum imports to Male originate from Dubai, China, Singapore and Colombo, where Dubai, Singapore and Colombo are mostly transhipment ports.
Since Maldives is a 100 per cent import dependent country, improved connectivity between India and Maldives will help boost bilateral trade and help economic activity in Maldives, already reeling under the disruption brought about by Covid-19.
The Covid-19 crisis has, drawn the attention of the world towards resilient supply chains.
In May-June this year, while Maldivian imports have fallen 50 per cent, India has become the 2nd largest exporter to Maldives.
Besides, several bilateral projects are in the pipeline, owing to which export of construction material and other commodities from India to Maldives is bound to rise in the coming months.
This includes the Greater Male Connectivity Project (under $400 million LOC and $100 million grant), projects under the $800 million Line of Credit.
