Managing Director of State Trading Organisation (STO) Hussain Amr has revealed plans to start a shipping line in the first quarter of this year.
Speaking to brief the press about the ongoing developments, Managing Director Amr said additional details will be shared with the media later as the inception still requires a lot of work from STO. Amr said STO is planning to begin a shipping line as part of its vision to invest in larger businesses.
STO aims to take larger investments after leaving smaller businesses to small and medium enterprises (SMEs). With an own shipping line, STO expects to increase its profits significantly and reduce the existing shipping costs charged by the foreign shipping liners.
The first shipping line was created in Maldives during the administration of President Ibrahim Nasir in the 1970s. Maldives National Shipping Limited (MNSL) ran successfully for many years before it was declared bankrupt.
STO earlier said MNSL ran bankrupt due to lack of a proper port and lack of preparation and awareness to the changes in the freight market. STO assured it will begin operations after thorough preparations and said it is currently carrying out feasibility studies to analyse the market.