Minister Calls for Revised RTL Ferry Model to Reduce Subsidy Dependency

Transport and Civil Aviation Minister Mohamed Ameen has urged the Economic Council to reassess the Raajje Transport Link (RTL) ferry service model to make it financially sustainable. Addressing the Economic Affairs Committee of Parliament, Minister Ameen expressed concerns over the service's heavy reliance on government subsidies, which he said could become unsustainable.

Since the launch of RTL, costs have mounted significantly, with expenses reaching MVR 47.7 million in its first year and rising to MVR 130.9 million last year. This year, the cost is expected to exceed MVR 280 million. Minister Ameen noted that only 20% of these costs are recovered through revenue, with the remaining 80% funded by government subsidies, potentially amounting to over MVR 15.4 million annually if the model remains unchanged.

Despite the financial challenges, the government intends to adhere to the original RTL expansion timeline, with completion slated for 2027. To improve the model’s sustainability, Minister Ameen proposed reducing the subsidy rate to 55% while increasing the recovery rate to 45%, as suggested by USAID recommendations.

This strategic adjustment, he noted, could ensure the long-term viability of the RTL ferry service while maintaining essential transport links for the public.