DUBAI: Dubai-based port operator DP World has signed an agreement with the Maldivian government to develop the archipelago’s ports and logistics industry.
Maldives’ tourism minister, Ahmed Adeeb told local media this week about the development of a deep-water port on the industrial island of Thilafushi. DP world would invest $300 million on the industrial island.
The first phase of the project will see construction of a container terminal, followed by the development of a free trade zone for the import and export of cargo, he said.
DP World Chairman, Sultan Ahmed Bin Sulayem said, “The Maldives has been growing rapidly, driven largely by its tourism development. We are working with them to help diversify the economy through building infrastructure, logistics and transport links needed to make this happen.
The UAE has much experience and expertise in this area thanks to the vision of our leaders to explore new growth strategies. We are proud to share our expertise with the Maldives as they develop their capabilities in the global supply chain industry,” he added.
It is also likely that the free trade zone will be used for the creation of a captive base of industry to diversify the Maldives economy, which is over-reliant on tourism and therefore extremely vulnerable to seasonal and geopolitical downturns.
The deepwater port will later be expanded to include facilities for breakbulk and transshipment cargoes.
According to Adeeb, the FTZ would be completed within two years of a joint venture agreement being signed between DP World and Maldives Ports Limited (MPL).
An archipelago of more than 1,000 islands, the Maldives has no land-based natural resources, the country’s economy is reliant on tourism and fishing.
