State Trading Organization (STO) signs with Qatari conglomerate Urbacon Trading to develop a bunkering facility in Haa Alifu atoll Ihavandhippolhu.
One of the most crucial components of the Ihavandhippolhu Port City initiative is the establishment of national strategic oil reserve and international bunkering.
A memorandum of understanding was signed between STO and Urbacon on August 10, Thursday towards the commencement of this initiative. Urbacon is expected to carry out the feasibility study for the project under this agreement.
Ihavandhippolhu, the northern-most island is geographically located in a shipping heavy area. Every day, nearly 300 large carriers traverse across the channel.
International bunkering is a USD 150 billion industry, and establishing a bunkering facility in the Maldives paves way for shipping industry revenue for the country. The initiative is expected to improve the country’s maritime industry and bridge the gap in transshipment activities as well.
STO believes the Ihavandhippolhu Port City initiative can create the opportunity for new ventures including shipping agencies, crew change, ship handling, repairs and spare parts in the Maldives to cater to international liners.
Meanwhile, the corporation had consulted international experts to draft regulations necessary for the establishment of bunkering services in the Maldives.