Rising prices driven by logistical bottlenecks at the port: Raee

Former Member of Parliament for the Makunudhoo constituency, Mohamed Raee, has stated that the rising cost of goods in the local market is driven by significant delays in clearing cargo and congestion at the Male' Port.

Speaking at the MDP "Haruge" rally on Wednesday night, Raee stated that fluctuations in global oil prices lead to an increase in the cost of goods and freight charges for imports from countries such as Singapore, Dubai, and Sri Lanka. He noted that the adverse effects of rising freight costs are felt across the entire country and highlighted that the first efforts to find a permanent solution to this issue began in 2008 under the then-MDP administration. Raee further noted that ports were established in the north and south of the Maldives at that time to alleviate congestion at the Malé port. He emphasized that it was the MDP government that developed Hithadhoo Ports Limited and Kulhudhuffushi Ports Limited, and formulated the policy to grant a 30 percent duty exemption on goods imported through those facilities.

The policy formulated at the time was a temporary measure introduced to alleviate congestion at the Malé port by developing port facilities across various regions of the Maldives. From 2008 to 2013, the volume of cargo increased by more than 100 containers per month, driven by the rising influx of transshipment goods being processed through this port.

Former Member of Parliament for the Makunudhoo constituency, Mohamed Raee.

Between 2008 and 2013, the regional ports handled over 100 transshipment containers per month. As Male'-based businesses also utilized these northern and southern ports, Maldives Ports Limited (MPL) saw a steady increase in its daily revenue. Raee noted that during this period, the company’s annual profits consistently ranged between 100 million and 300 million Rufiyaa. However, pointing out that MPL's net profit plummeted to just 10 million Rufiyaa last year, Raee remarked that even a tea shop on Majeedhee Magu in Male' would likely generate a higher profit. He further alleged that the current earnings are primarily derived from storage penalties and fines imposed on goods held at the port under various excuses, such as equipment failure.

Expressing concern over rising commodity prices caused by delays in cargo clearance, Raee further noted that the previous MDP administration had formulated a robust, long-term plan to develop the port at Gulhifalhu, based on the recommendations of international experts. However, he stated it was deeply concerning that President Dr. Mohamed Muizzu has decided to relocate the port to Thilafushi as a temporary fix without any comprehensive plan to address the underlying issues.