MTCC says economic activity expanded with RTL services

The Raajje Transport Link (RTL) project, which has been launched to connect the Maldives through a high-speed public transport system, is boosting economic activity, General Manager of Marine Transport Division of MTCC Ismail Fariq said on Sunday.

Speaking at the Maldives Accountants' Forum (MAF) on 'The importance of a strong public transport network for economic growth', Fariq said it was important to have a way for people to travel from one island to another.

It is a lot of challenges because of the nature of the country, but Fariq said it is not impossible in a robust public transport system.

RTL was the government's initiative to address the mobility problem in the atolls and build a robust public transport network. Under RTL:

Fariq shared the change in public transport trends with RTL services using numbers.

"On average, around 40,000 people travel in MTCC buses and ferries every day," he said. 

According to Fariq:

"On an average, around 800-1,000 people travel on a daily basis between these 41 islands. Before the RTL ferry service was launched, the number was less than 300," he said.

"More movement means more economic activity. We are seeing positive changes in local tourism, eco-tourism and local transport sectors in these islands."

According to Fariq, 60% of ferry passengers travel from one island to another seeking medical treatment. That, he said, was the case in the northern suburbs, where a majority of ferry passengers are travelling to the hospitals in HA. Dhidhoo, HDh. Kulhudhuffushi and Sh. Fonadhoo.

"The number of people seeking treatment at these hospitals has gone up significantly. It's not because the number of illnesses has increased, but because quality health care is available in these areas and people can now easily go from one island to another [for treatment]," he said.

Though the service was provided under the first phase of the RTL ferry project and only in three northern atolls, Fariq said the service would expand across the country in the next two years.

Another part of RTL services is their bus service. On the bus service, Fariq said that an average of 5,000 people use RTL bus services every day.

While the public transport network set up in the Maldives is still in its infancy, Fariq said there are already many challenges. What he pointed out was the rise in global crude oil prices.

"When we discussed with the government in 2020 to start this service, the global crude oil price was below $40 per barrel. But now the price has gone up to $104," he said.

While the price has not gone beyond that yet, Fariq said it was still a big cost.

Pointing out that the success of a public transport network lies in its continuity and efficiency, he said diesel is used for both RTL ferries and buses. He said the rise in fuel prices has put a huge financial burden on MTCC and the cost needs to be reduced to ensure the success of the network.

"In the long run, the solution is an energy alternative [other than diesel]. [That energy] is a technology that can be used with RTL ferries. We are working closely with the Environment Ministry and the Transport Ministry to achieve this," he said.

"The good news is that with the help of the government, MTCC will add electric mini buses to its fleet operating in Male by the end of this year".

Since 2017, the MAF has aimed to train and promote the field of accounting via their annual event.