Work has officially commenced on the establishment of a Bonded Zone at the Hithadhoo commercial port in Addu City, enabling the storage of essential food items free of duty charges and marking an important step in enhancing trade infrastructure in the southern Maldives. The development forms part of a key national project announced by President Dr Mohamed Muizzu, aimed at strengthening regional economic capacity and improving supply chain efficiency across the country.
A special ceremony was held in Hithadhoo to inaugurate new facilities at Hithadhoo Ports Limited, with the Minister of Economic Development, Mohamed Saeed, officiating the event. During the ceremony, an agreement was signed between the Ministry of Economic Development and Maldives Ports Limited to operationalize three major services at the port: bonded zone facilities for the storage of essential food items, bonded warehousing facilities, and bulk cargo facilities. The agreement was signed by Minister Saeed on behalf of the government and by the Chief Executive Officer of Maldives Ports Limited, Mohamed Rishwan, underscoring the strategic importance of the initiative for national and regional trade.
The introduction of these services is expected to significantly reduce goods clearing fees and allow businesses operating in the southern region to import goods closer to their base of operations. According to Hithadhoo Ports Limited, this improvement will enhance operational efficiency for traders and distributors, while also generating broader economic benefits across the southern atolls. The availability of bonded storage for construction materials such as sand, gravel, and other bulk inputs is anticipated to support ongoing and future construction activity, creating positive ripple effects for the construction sector and related industries in the region.
Hithadhoo Regional Port, which began operations two decades ago, serves as the main port for the southern Maldives and operates under Maldives Ports Limited. Over the years, it has played a central role in facilitating trade and supporting economic activity in Addu City and neighboring atolls. Speaking at the ceremony, Minister Saeed highlighted that the establishment of bonded zone services at the Hithadhoo commercial port represents a critical step in transforming Addu into a commercial hub, in line with the vision articulated by President Dr Mohamed Muizzu. He noted that the introduction of duty-free storage facilities in Addu was a commitment outlined in the President’s inaugural address, and that its implementation reflects steady progress in fulfilling national economic priorities.
The Minister further emphasized that the availability of bonded storage facilities enables a wider range of goods, including containerized cargo and frozen items, to be stored locally without immediate duty payments. This development is expected to improve supply reliability, reduce logistics costs, and enhance food security for the southern region, while also positioning Addu as a more competitive and self-sustaining economic center capable of producing and supporting a diverse range of goods and services.
Reflecting on the broader trade and port development strategy, Minister Saeed observed that while the Maldives has major ports serving both the northern and southern regions, sustainable trade growth requires these ports to be equipped with adequate facilities and resources rather than functioning merely as satellite ports. He noted that achieving this goal may require regulatory reforms, legislative updates, and continued investment in port infrastructure to ensure efficient and modern operations aligned with international trade standards.
In the wider context of national port development, the government has also outlined plans to relocate Malé Port operations to Thilafushi, a decision expected to support long-term economic growth and modernize maritime logistics in the capital region. As part of this initiative, Maldives Ports Limited is set to award contracts for major infrastructure components, including international and domestic quay walls, paving works, building construction, and the procurement of essential port equipment. Once these developments are completed, commercial port operations in the capital are scheduled to fully transition to Thilafushi by 11 November 2027, further strengthening the Maldives’ position as a well-connected and regionally balanced trading nation.
Together, the launch of bonded zone services at Hithadhoo Port and the ongoing national port development initiatives reflect a comprehensive approach to enhancing trade facilitation, regional economic inclusion, and long-term resilience, positioning the Maldives as an increasingly efficient hub for commerce and logistics in the Indian Ocean region.
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