The government has launched a strategic expansion of the Hithadhoo Commercial Port in Addu City, a move officials say is central to President Mohamed Muizzu’s vision of positioning the region as a major southern economic hub.
Speaking during his Presidential Address at the opening session of Parliament for 2026 on 5 February, President Muizzu underscored the importance of stabilising prices of essential goods as a benchmark of economic strength.
“A primary indicator of a nation’s economic strength is its ability to maintain price stability for essential commodities required for daily life,” the President said, noting that several initiatives had been undertaken over the past year to support that goal.
He referenced the establishment of a designated duty-free zone at Kulhudhuffushi Port on 26 August 2025, adding that similar services are now set to be introduced at the Hithadhoo Commercial Port, with operations expected to begin within the month.
Formal Agreement Signed
Shortly after the President’s remarks, the expansion was formalised through an agreement signed by Minister of Economic Development and Trade Mohamed Saeed and the leadership of Maldives Ports Limited (MPL).
The port upgrade will introduce three major components:
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A duty-free zone for food and essential goods
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Bonded warehouse services
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A bulk cargo handling facility
Officials say the combined measures are intended to modernise trade infrastructure and support price stability across the southern region.
The introduction of bonded warehousing is expected to ease cash flow pressures for importers. Under the system, traders can store goods without immediately paying import duties, allowing greater financial flexibility and improved stock management.
Authorities say this reform addresses longstanding financial constraints faced by merchants and will enable businesses to operate more efficiently while maintaining reliable supply levels.
The addition of bulk cargo facilities is designed to support the construction sector. By allowing large-scale importation and storage of materials such as sand and aggregate, the government aims to reduce transport costs and lower market prices for building materials.
Officials believe the improved logistics will help accelerate infrastructure and housing projects in Addu and across the southern atolls, potentially easing delays and improving access to housing.
The upgrade is also expected to benefit the tourism sector. With approximately 85 tourist facilities operating across the four southern atolls, direct supply access through Addu could reduce reliance on shipments from Malé, cutting transport expenses and shortening delivery times.
Government officials describe the port expansion not simply as an infrastructure project, but as a structural step toward transforming Addu City into the country’s second major economic centre.
