Economic Minister Mohamed Saeed has announced that goods unloaded at the commercial port of Kulhudhuffushi City will no longer be subject to duty, following the establishment of a warehousing system and expanded port services. The initiative fulfils one of President Dr Mohamed Muizzu’s key pledges.
The Maldives Ports Limited (MPL) has been contracted to expand the port, manage the warehousing system, and establish a bonded zone. The agreement was signed between Minister Saeed and MPL CEO DCP (retd) Mohamed Rishwan.
Four new services were officially inaugurated at the port. These include a bonded zone for storing duty-free staple foods and goods, a bonded warehouse for restricted items destined for tourist resorts, a direct loading system to improve shipment of goods to rural islands, and a dedicated storage area for construction materials such as stone and gravel.
Minister Saeed stated that the new system allows all food and beverages imported through the port to be stored without additional duty, with taxes only applied when goods are exported or distributed to other islands as determined by Maldives Customs. He likened the arrangements to international duty-free zones and said the development is expected to improve supply chain efficiency across the atolls and reduce transportation costs.
Cargo ferry services between Cochin, India, and Kulhudhuffushi began in 2020, but the port has faced operational limitations due to its current capacity to handle only ships of up to 1,000 tons. Larger vessels have had to offload cargo at sea using barges and smaller boats. MPL has previously outlined plans to expand the port to accommodate bigger vessels and reduce these constraints.
The government expects the expansion and new services to lower the cost of goods for businesses and resorts and improve access to essential supplies in northern atolls.
