Maldives Transport and Contracting Company Limited (MTCC) has reported a significant loss amounting to USD 33 million, attributed to the prolonged non-utilisation of its dredger, Mahaa Jarraafu. Despite ceasing operations on June 8, 2022, due to damages, the largest dredger in the company's possession has undergone repairs and is now integrated back into ongoing activities.
The grounding of Mahaa Jarraafu had a substantial impact on the land reclamation process, compelling MTCC to lease an additional dredger at a substantial cost from abroad. Consequently, the anticipated benefits from land reclamation projects were markedly diminished.
MTCC identified the absence of proper maintenance schedules as the primary cause for the dredger's grounding. Notably, during the 571 days when the dredger remained unused, operating expenses amounting to USD 3 million were incurred, contributing to a significant loss of USD 33 million for the company, according to the company.
The company acknowledged that the dredger's inactivity adversely affected MTCC's revenue, with one-third of the project division's income directly linked to proceeds generated from land reclamation. However, MTCC has announced plans to mobilise the dredger, resuming operations and land reclamation projects within the next two months.
Mahaa Jarraafu, MTCC's largest dredger, played a crucial role in the expansion of land area by 13.07 hectares in Ungoofaaru, Raa Atoll. MTCC revealed that subsequent projects involving the private reclamation projects are in the pipeline, following discussions.
Over the past 43 years, MTCC has successfully executed numerous projects across various regions of the country.