State Trading Organistaion (STO) has signed a Memorandum of Understanding (MOU) with Qatar-based UrbaCon Trading and Contracting (UCC) to develop a bunkering facility in the northernmost region of the Maldives.
The MoU was signed by Managing Director of STO Abdulla Saeed and Chief Executive Officer (CEO) of UCC Mohamed Sabri. STO stated that the partnership concerns the formation and development of a bunkering facility and national strategic oil storage in Haa Alifu Atoll, representing a significant step forward on its shared path to advancement and expansion in international trade.
At the signing ceremony, Minister of Economic Development Fayyaz Ismail said the Maldives has long needed a bunkering service and international transshipment port services. He, however, said the country still has the opportunity to gain benefits from establishing the services and greatly transform its economy. He said that the administration aims to transform the northernmost region into an economic hub in terms of trade, manufacturing, and other related activities.
Also at the ceremony, Managing Director Saeed said that funds have been secured to begin the bunkering service and that the project is expected to significantly boost the country's economy and create jobs.
The project to build an oil storage and bunkering service is part of the government’s planned Port City Development Project in Haa Alifu Atoll. The port city will consist of services such as crew changing, bunkering, and supplying and will facilitate a national strategic oil reserve as well as feasibility studies and fieldwork for the launch of the international bunkering service. The port will be developed to cater to the largest cargo ships in the world, with a handling capacity of 1.8 million containers per year.