The Government of Maldives has commenced the strategic expansion of the Hithadhoo Commercial Port in Addu City, reinforcing President Dr Mohamed Muizzu’s national development agenda to position the southern region as a dynamic economic hub. The initiative reflects broader economic policies aimed at improving trade efficiency, enhancing regional self-sufficiency, and ensuring price stability for essential commodities across the country. The project follows commitments outlined by the President during his Presidential Address at the inaugural session of Parliament for 2026 held on 5 February, where he emphasized that maintaining stable prices for daily necessities remains a key measure of economic resilience and national prosperity.
In his address, President Muizzu highlighted the government’s ongoing efforts to strengthen trade infrastructure and reduce cost pressures affecting households and businesses. He noted that the establishment of a designated duty-free zone at Kulhudhuffushi Port in August 2025 marked an important step toward improving commodity distribution nationwide, and confirmed plans to introduce a similar facility at the Hithadhoo Commercial Port with services expected to commence within the month. The initiative forms part of a broader strategy to decentralise commercial activities, reduce logistical dependence on Malé, and expand economic opportunities across the atolls.
Following the presidential announcement, the expansion was formalised through an agreement signed between Minister of Economic Development and Trade Mohamed Saeed and the leadership of Maldives Ports Limited (MPL). The development introduces three major operational components: a duty-free zone dedicated to food and essential goods, bonded warehouse services, and a bulk cargo handling facility. These additions are designed to modernise the Maldives’ trade ecosystem by streamlining import processes, improving storage capacity, and enabling more efficient distribution networks throughout the southern region.
The bonded warehousing system is expected to provide significant advantages for local merchants and distributors. By allowing imported goods to be stored without the immediate payment of duties, businesses can better manage cash flow while maintaining stable inventory levels. This approach reduces financial strain on traders, encourages more consistent supply availability, and supports price stability in local markets. Officials anticipate that the reform will improve commercial confidence and create a more predictable trading environment for businesses operating in Addu City and neighbouring islands.
The introduction of bulk cargo capabilities addresses long-standing logistical challenges faced by the construction sector in the south. Facilities designed for large-scale importation and storage of materials such as aggregate and sand will reduce transportation inefficiencies and associated costs. Lower import expenses are expected to contribute to more affordable construction materials, enabling faster implementation of infrastructure and housing projects across Addu and surrounding atolls. Authorities project that improved material access will help accelerate delayed developments while expanding housing opportunities for residents.
Beyond trade and construction, the expanded port is anticipated to deliver meaningful benefits to the tourism industry, which continues to grow across the southern Maldives. With approximately 85 tourism facilities operating across the four southern atolls, improved port infrastructure will enable resorts to access supplies directly through Addu rather than relying primarily on shipments routed through the capital. Shorter supply chains are expected to reduce transportation time and operational costs, allowing resorts to maintain more efficient inventory management and deliver enhanced service standards to international visitors. The improved logistics framework also strengthens sustainability by reducing unnecessary transit distances and supporting more regionally balanced economic activity.
The government views the Hithadhoo Commercial Port expansion as a long-term investment in regional development, supporting economic diversification while reinforcing Addu City’s role as a major commercial and logistical centre in the Maldives. By improving trade efficiency, supporting local businesses, facilitating construction growth, and enhancing tourism supply networks, the project contributes to broader national goals of inclusive economic progress and resilient regional economies. As implementation progresses, the upgraded port is expected to play an increasingly central role in connecting southern communities to global trade while supporting continued growth in one of the country’s most promising regions.
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