The Minister of Transport and Civil Aviation, Mohamed Ameen, has requested the Economic Council to revise the Raajje Transport Link (RTL) ferry service model to ensure sustainability.
Speaking to the Economic Affairs Committee of the Parliament, Minister Ameen highlighted that while the RTL service is vital for the public, the current system is not viable in the long term due to its heavy reliance on state subsidies.
Since its launch, RTL has incurred significant costs, with USD 3.1 million spent in its first year and USD 8.5 million last year, expected to rise to over USD 18.2 million this year. Minister Ameen noted that the existing model only recovers 20% of costs, with 80% covered by subsidies, which could exceed USD 1 million annually if unchanged.
The government plans to maintain the RTL rollout schedule, aiming for project completion by 2027. To enhance sustainability, they propose reducing the subsidy rate to 55% and increasing the recovery rate to 45%, based on recommendations from USAID.