Economic Minister Mohamed Saeed has announced that goods unloaded at Kulhudhuffushi City’s commercial port will no longer be subject to duty, following the launch of a warehousing system and expanded port services. The move delivers on one of President Dr Mohamed Muizzu’s key pledges.
Under a new agreement, Maldives Ports Limited (MPL) will manage the port expansion, oversee the warehousing system, and establish a bonded zone. The deal was signed between Minister Saeed and DCP (Retd) Mohamed Rishwan, CEO of MPL.
At the inauguration, four new services were introduced:
- A bonded zone for storing duty-free staple foods and goods.
- A bonded warehouse for restricted items bound for resorts.
- A direct loading system to streamline shipments to rural islands.
- A dedicated storage facility for construction materials such as stone and gravel.
Minister Saeed explained that all food and beverages imported through Kulhudhuffushi can now be stored duty-free, with taxes applied only when goods are distributed to other islands or exported, as determined by Maldives Customs. He compared the system to international duty-free zones, noting it would boost supply chain efficiency across the atolls and cut transport costs.
Since 2020, cargo ferries have connected Cochin, India, with Kulhudhuffushi, but operations have been limited by the port’s current capacity of handling only 1,000-ton vessels. Larger ships have been forced to offload cargo offshore using barges. MPL has already outlined plans to expand the port to accommodate larger vessels and alleviate these constraints.
The government expects the expansion and new services to lower costs for businesses and resorts, while improving access to essential goods across the northern atolls.
