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MPL: Area for domestic operations in new Thilafushi port will be completed in October

Thilafushi: MPL states area for domestic operations in new Thilafushi port will be completed in October. (Photo/MPL)

The Maldives Ports Limited (MPL) has announced that the area designated for domestic operations under the project to relocate the Malé Commercial Port to Thilafushi is expected to be completed by early October.

Economic Minister Mohamed Saeed shared a video update on X on Wednesday, highlighting the progress being made on the port relocation project.

According to MPL, construction of the 100-metre quay wall for the domestic operations area, which was contracted to the Maldives Transport and Contracting Company (MTCC), has been completed. Yard paving works covering an area of 40.1 square kilometres are currently underway and are expected to be completed by early October.

MPL said that once the area becomes operational, all boat and cargo clearance activities currently conducted at the Malé Commercial Port will be fully relocated to Thilafushi. Work is also underway to establish the infrastructure and facilities required to commence these operations.

Meanwhile, the China Harbor Engineering Company (CHEC) is making significant progress on the 375-metre international quay wall and the two-kilometre domestic quay. MPL said CHEC has completed 40 percent of the land reclamation required for the 820-metre section of the domestic quay.

Additionally, MPL has begun procuring operational equipment for the new Thilafushi port, with the equipment expected to arrive by October. The company expects the domestic quay to be completed by the end of November, while the international quay is scheduled for completion by July next year.

In his post accompanying the video, Minister Saeed noted that despite the passage of many years, development of the country’s main commercial port had remained incremental.

The new port development at Thilafushi is an approximately USD 250 million project, with the first phase awarded to CHEC in February this year. According to MPL, the 20-hectare port will have an annual handling capacity of 300,000 TEUs (containers) upon completion, more than twice the 135,000 TEUs handled by the Malé port last year. The government has set a target of fully relocating commercial port operations from Malé to Thilafushi by November 11, 2025.

Authorities have described the relocation as a permanent solution to the space constraints and congestion affecting the Malé port. Developed during the 1980s on just five hectares of land, the port frequently experiences cargo clearance delays exceeding two weeks. Media reports citing businesses have indicated that such delays result in significant losses through demurrage charges, contributing to higher costs for goods.

As a temporary measure to ease the congestion, the current administration has shifted cargo clearance services to a 24-hour operation and increased the demurrage-free period from 80 hours to 124 hours. Earlier this year, congestion resulted in approximately 4,200 containers destined for the Maldives being held up at the Port of Colombo in Sri Lanka. The government has stated that once the new port becomes operational, the current seven-day cargo clearance period will be reduced to 48 hours.

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