Maldives State Shipping (MSS) has revealed the cargo ferry between Addu City and Tuticorin, India was suspended due to lack of demand.
The national shipping line had launched the cargo ferry service between Tuticorin and Addu in October 2020. However, the service was suspended in March this year.
Speaking to PSM News, Managing Director of MSS Abdulla Saeed explained that the service had to be suspended due to lack of sufficient demand for the service. Saeed noted the service was launched with the hope that private businesses in Addu would place their orders and import goods through the cargo ferries. However, he said only 14 businesses had imported cargo through the ferry service, of which only five were regular customers. He noted the ferries mainly carried cargo of State Trading Organisation (STO), with private cargo accounting for only 15% of the total cargo carried by the ferries.
Speaking further, Saeed revealed 19 ferries were operated during the one-year five-month duration of the service, carrying a total of 75,973 tonnes of cargo, of which 85% belonged to STO. Saeed said only 15% belonged to businesses in Addu, with the single largest private order on one trip amounting to about 600T. Noting the ferry used for the service had a capacity of 3800T, Saeed said it was not feasible to continue operating an international cargo ferry with such little cargo.
Furthermore, Saeed said the fall of demand was caused by the completion of many projects that were ongoing at the time the service was launched. Noting some new projects have now commenced in Addu, Saeed said MSS will resume its service if there is a sufficient demand.
MSS is a subsidiary company of State Trading Organisation (STO). The company was established in April 2020 to reduce the price of goods imported into the country. Although MSS had initially been importing goods on chartered vessels, the company now operates its own vessels for the import of general cargo and construction materials.