Hithadhoo Port Expansion Aims to Anchor Southern Trade and Logistics

Plans to establish a bonded zone, duty free zone and bulk cargo facility at Hithadhoo Commercial Port point to a broader effort to reposition Addu as a southern trade and logistics centre, with implications for construction, tourism supply chains and domestic cargo distribution.

An agreement to develop the new facilities was signed by Maldives Ports Limited Managing Director Mohamed Rishwanand Mohamed Saeed during a ceremony marking the port’s 20th anniversary. Under the agreement, MPL will move ahead with a duty free zone, a bonded warehouse service and a bulk cargo handling area at the Hithadhoo facility.

According to MPL, the duty free zone will allow traders to store selected goods without paying import duties, particularly food items such as sugar and other staples. This is expected to lower storage and working capital costs for businesses operating in the southern region. The bonded warehouse service is intended to support tourism operators by providing secure storage for goods imported under special permits, reducing logistical friction for resorts and hospitality businesses based outside Malé.

The planned bulk cargo facility will allow temporary storage of construction materials, including rock and stone, which MPL says is critical for meeting rising construction demand in Addu and neighbouring atolls. Together, the three services are designed to strengthen the port’s role beyond basic cargo handling and towards a more integrated logistics function.

Speaking at the event, Rishwan described Hithadhoo Regional Port as a future economic backbone for the south, linking the expansion to wider reforms in the national port system. He said both Hithadhoo and Kulhudhuffushi ports are central to the government’s plan to gradually relocate core commercial port functions from Malé to Thilafushi, easing long standing congestion in Malé, Hulhumalé and the T-Jetty.

Rishwan also pointed to the need for stronger cargo redistribution networks, noting that efficient movement of goods from Malé to the northern and southern regions remains a critical gap. He said MPL is working with the Ministry of Agriculture and Animal Welfare to establish cold storage facilities across the country, an effort aimed at reducing transport costs to the atolls and limiting post import losses.

MPL confirmed that logistics services have already commenced as part of the first phase of relocating the Malé Commercial Harbour to Thilafushi, with a target completion date of November 2027. The company says this timeline, if met, would reshape how cargo moves across the Maldives.