MTCC ferry and bus services to charge GST

Ferry and bus services operated by Maldives Transport and Construction Company (MTCC) will now charge GST in addition to the ticket price, local media has reported.

MTCC Transport Executive Ismail Fariq told Sun Online that the company is now required to collect GST as it is a registered company at Maldives Inland Revenue Authority (MIRA).

Under the new requirements, tickets to Hulhumale’ cost MVR 5.30 and a ticket to Vilimale’ is charged at MVR 3.18. Inter-atoll island-to-island ferry services charge MVR 21 and MVR 53 for a trip to Male’
. Hulhumale’ bus fees have also increased to MVR 2.12, according to local media.

“It is not that we have increased the prices of our services. We have just added the GST 6 percent to our services,” Fariq told local media. “As such, GST will be collected from ferries from Hulhumale’, Vilingili, Gulhee Falhu, Thilafushi and province ferries as well as Hulhumale’ bus services.”

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Vessel sunk and five injured after two separate boat collisions in Male’

Three boats have been damaged and another vessel sunk following two separate collisions in Male’ over the last 24 hours, authorities have confirmed.

The Maldives Police Service (MPS) has reported that a total of five people had received minor injuries as a result of the two separate collisions that occurred in the capital on Wednesday (January 3).  The first of these collisions occurred near the city’s T-Jetty, while the second crash occurred at the airport ferry terminal area, according to police.

Both collisions involved ferries operated by Maldives Transport and Contracting Company (MTCC), which today announced that it would not be reviewing its current operations, instead favouring increased staff training.

MTCC Executive Ismail Fariq told Minivan News that despite the incidents, there had been no changes to the schedule of its services, with all ferry operations running as “normal”.

“As we understand, the MTCC captain controlling the Hulhumale’ ferry was acting in accordance to regulation. There was no fault on our side,” Fariq said in regard to the airport ferry terminal collision.  “The traffic between these two islands is extremely high, and there is only one entrance and exit to the Hulhule’ and Hulhumale’ terminal.”

Fariq said that while there have been no changes to operations since yesterday’s collision, the company would be conducting “ongoing” sessions of additional training for captains.

The extra training was started last month following another incident involving a speedboat service operated by the MTCC.

“We are also hoping to negotiate with the city council and other public bodies to try and have a different entry point for the terminals, although this will be a long term goal of ours,” added Fariq.

An official from MTCC told local newspaper Haveeru yesterday that one of the collisions occurred yesterday when an airport ferry “backed up” while the MTCC vessel was entering the harbour.

Police reported at the time that five passengers aboard the airport ferry had to be taken to hospital following the collision. Police Spokesperson Hassan Haneef told Minivan News today (January 3) that all of the five injured passengers had now been discharged from hospital.

According to police reports, the earlier incident involved a collision between an MTCC ferry travelling from Villingili and a cargo boat carrying goods called Mihiri, causing the latter to sink.

Police confirmed today that there had been no reported injuries and that investigations into the incident were “underway”.

Speaking about the incident, Fariq said he believed poor visibility had resulted in the collision, however the company is still waiting for an official report from the police.

“If you are on the ferry, it is very difficult to see what is going in and what is coming out of the jetty. Our Villingili ferry had come over to Male’ and was waiting to come in when it collided with the cargo boat.

“There wasn’t much damage to either vessel from where they struck, so we think that the cargo boat may have also hit the rocks causing it to sink,” Fariq alleged.

Last month, an MTCC express speedboat and another vessel belonging to the Bandos Island Resort and Spa property collided, leaving a Finnish tourist dead and nine other people injured.

The incident led to the temporary suspension of an express speedboat service between Hulhumale’ and Male’ operated by the Maldives Transport and Contracting Company (MTCC).

The services were restarted later the same month follow a review of guest safety procedures.

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MTCC blames city council for financial losses

The Maldives Transport and Contracting Company (MTCC) has today announced its intention to take legal action against Male’ City Council (MCC), alleging that negative rumours spread about the company had cost the companies shareholders money.

In a statement, reported by Haveeru, the MTCC refuted the council’s claims that it had to pay MVR 2.6million (US$170,000) in land rent. It further alleged that rumours started by MCC had directly resulted in the halting of its MVR 213.6 million (US$14 million) project to develop a lot close to Villimale’ ferry terminal.

The company also stated that, contrary to warnings received from the MCC, the council did not have the authority to find an alternative provider for ferry services in the greater Male’ area.

In today’s statement, the MTCC argued that the services it was providing were in accordance with the agreement signed with the government. It stressed that it had made efforts to improve the service without raising prices in line with hikes in the local Goods and Services Tax (GST).

The company was forced to reconsider raising fares last September after large protests outside the Villimale’ terminal. In June, it was revealed that the MTCC had made a  loss of Rf 89 million (US$5.7 million) in 2011.

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Bridge needed between Male’ and Hulhumale’, says President

President Mohamed Nasheed has said it is necessary for the government to built a bridge connecting the islands of Male’ and Hulhumale’ to improve transportation and development on both islands. This statement was made after the President presented documents of guarantee to flat recipients in Hulhumale’, as provided by the Veshi Fahi Male’ de-congestion program.

The President said a ferry system was insufficient to accommodate the growing populations on both islands.

The Veshi Fahi Male’ housing project is expected to add 10,000 flats to Hulhumale’. 8,000 flats are currently being constructed.

2500 flats were said to be built under Phase 2 of the Gulhifalhu development project, which is set to begin next month, reported the President’s Office.

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Transport minister talks Maldives’ SAARC ferry plans

Minister of Transport and Communication, Mohamed Adhil Saleem, has said that he expects the Maldives to be among the first beneficiaries of expanded ferry services between South Asian Association for Regional Cooperation (SAARC) member states.

Miadhu reported that Saleem said he expected the Maldives to be included within initial plans to strengthen the regional transport network between different SAARC member states with a ferry service travelling to the country from India and Sri Lanka. According to the news service, Pakistan and Bangladesh are also expected to be included in these regional ferry services at a later date.

Adil Saleem claimed that the services are expected to provide Maldivians with more cost efficient opportunities to transport goods and travel around South Asia in a safe and secure manner.

Ferry services between Sri Lanka and India have been restarted in recent months after a 30 year cessation of the services.  Meanwhile, the expansion of similar regional transport links is expected to play an important part in discussions at this year’s 17th SAARC summit being held in Addu Atoll in November.

Earlier this week, summit organisers said that connectivity – both in physical and diplomatic terms – would be a central theme of the SAARC meeting.

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