Kulhudhuffushi Port expands services, introduces duty-free system

Economic Minister Mohamed Saeed announced on Tuesday 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 services.

This initiative fulfills one of President Dr. Mohamed Muizzu's key presidential promises.

The Maldives Ports Limited (MPL) has been awarded the contract to expand the commercial port, ensure food and basic goods remain duty-free, and establish a bonded zone. The agreement was officially signed by Economic Minister Mohamed Saeed and MPL CEO DCP (retd) Mohamed Rishwan.

In addition to the existing operations, four new services have been inaugurated at the commercial port of Kulhudhuffushi. These services, introduced under an agreement signed between the Ministry and MPL on May 19 this year, were officially launched by Minister Saeed. The newly introduced services include:

• Bonded Zone Service: For the storage of duty-free staple foods and other goods.

• Bonded Warehouse: Specifically for restricted goods destined for tourist resorts.

• Direct Loading System: To facilitate the direct loading of goods from Kulhudhuffushi port for shipment to rural areas.

• Dedicated Storage Area: A special zone designated for the storage of stone and gravel essential for construction work.

These expanded services are expected to enable businesses and resorts to maintain lower prices for goods.

Speaking at the launch ceremony, Minister Saeed emphasized that the new services establish a comprehensive system for storing all food and beverages used in the Maldives, with no additional duty levied once goods are unloaded at the port. Duty will only be applied to goods exported or sent from Kulhudhuffushi to other islands within the country, as determined by Maldives Customs.

Minister Saeed likened these areas to "duty-free zones" found in other parts of the world and assured that MPL would rapidly develop the area. The government's primary objective is to enhance supply chain efficiency across the atolls, reduce the cost of transporting goods, and facilitate the import of goods at more affordable prices.

Cargo ferry services from Cochin, India, to the commercial port of Kulhudhuffushi commenced in 2020. However, the port's current limitation to accommodating ships of a maximum of 1,000 tons has necessitated the unloading of goods from larger vessels outside the port using barges or boats. MPL had previously indicated plans for the expansion of the Kulhudhuffushi port to address this challenge.