Kulhudhuffushi Commercial Port Introduces Duty-Free Warehousing and Expanded Services
Photo: The President’s Office
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 the introduction of new services.
President Dr @MMuizzu attends the signing ceremony for Kulhudhuffushi City Port services expansion. The project aims to boost trade and strengthen connectivity.#RayyithunGaathah #HaaDhaaluAtollVisit pic.twitter.com/fFK8pfEjLE
— The President's Office (@presidencymv) August 26, 2025advertisement
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The initiative delivers on one of President Dr Mohamed Muizzu’s key presidential pledges to improve trade facilities and reduce costs for businesses and households. The Maldives Ports Limited (MPL) has been awarded the contract to expand the commercial port, maintain duty-free access for food and basic goods, and establish a bonded zone. The agreement was signed by Economic Minister Mohamed Saeed and MPL Chief Executive Officer DCP (retd) Mohamed Rishwan.
Four additional services have been inaugurated at the Kulhudhuffushi commercial port under the agreement signed between the Ministry of Economic Development and MPL on 19 May. These include a bonded zone service for the storage of duty-free staple foods and other essential goods, a bonded warehouse for restricted goods intended for resorts, a direct loading system to enable shipments from Kulhudhuffushi to rural areas, and a dedicated storage area for stone and gravel required for construction.
The government stated that these measures will create a comprehensive storage and distribution system for food and other commodities, with duty levied only on goods exported or transferred from Kulhudhuffushi to other islands as determined by Maldives Customs. Officials expect the expanded services to strengthen supply chain efficiency across the atolls, lower transportation costs, and help maintain more affordable prices for imported goods.
The Kulhudhuffushi port has been in operation for cargo ferries from Cochin, India, since 2020. However, the port can currently handle vessels of only up to 1,000 tons, requiring larger ships to offload goods outside the port via barges and boats. MPL has indicated that the planned port expansion will address these capacity constraints and support the government’s broader goal of enhancing trade infrastructure in the northern atolls.
