What is the Significance of First Direct Cargo Ferry Service between India and Maldives?

The Minister of State for Shipping, Mansukh Mandaviya launched the first direct Cargo Ferry service to Maldives. This cargo service will help in boosting the business and trade relations between the countries. This service has been launched in the wake of strengthening the Neighbourhood First Policy.

Key Facts

  • The cargo Service will be connecting the Tuticorin and Cochin ports of India with Male and Kulhudhuhfushi ports of Maldives.
  • India will subsidise the service at 3 million USD.
  • The entire link will be operated by the Shipping Corporation of India.


  • The service will be beneficial for small and medium enterprises largely.
  • The export of Tuna fish from Maldives can easily enter the Indian market with ease.
  • Maldives would find new opportunities to send their goods to Europe through Tuticorin and Cochin ports.
  •  Indian exporters would also be benefitted as the Maldives Parliament have reduced the custom duties by 50% for imports clearing at Kulhudhuffushi port.
  • The service would boost the service link to the economic growth of Northern Maldives.
  • It will also facilitate investments in tourism and machinery.
  • Ferry is capable of carrying 3,000 metric tonnes of bulk cargo.
  • It also has a storage facility. It can carry all types of commodities including the furniture, machinery, pharma products and other perishable goods.


  • The Cargo Vessel MCP Linz will transport cargo between the countries.
  • In India it will be operated by the Shipping Corporation of India.

The ferry service is being launched in the aftermath of a Memorandum of understanding signed between them In 2019. Federation of Indian Chambers of Commerce and Industry (FICCI) had done all the study to operate the ferry service.