Free port flourishing in character is set up (8)

I believe the answer is:

entrepot

I'm a little stuck... Click here to teach me more about this clue!

'free port' is the definition.
'entrepot' can be an answer for 'port' (I've seen this before). I am not certain of the 'free' bit.

I cannot understand how the rest of the clue works.

Can you help me to learn more?

(Other definitions for entrepot that I've seen before include "Storehouse" , "Import/export warehouse, port" , "Bonded warehouse; port" , "Trading port" .)

I've seen this clue in The Times and The Sunday Times.

Want a hint initially instead of a full solution? Install my app