Gov’t to Commence Construction of Bunkering Facility by June
Photo: STO
Economic Minister Mohamed Saeed disclosed that the construction of a bunkering facility in Ihavandhippolhu is scheduled to commence around June, in an interview with TRT World yesterday.
During the discussion with the Turkey-based news outlet, Minister Saeed highlighted the Maldives’ efforts to diversify its economic portfolio, currently reliant predominantly on tourism. He outlined the government’s exploration into various sectors, including digital technology, finance, and maritime industries, with particular emphasis on the burgeoning bunkering services sector.
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The minister disclosed that in March, the Maldives’ State Trading Organization (STO) inked an agreement with Vitol, a major player in global energy trading, to offer bunkering services from the Maldives. Saeed underscored the significance of this initiative, stating, “That is a new economic activity that hasn’t been done at this scale in the country. As a state, we have not given it such a big push in the past.”
Regarding the timeline for the bunkering facility’s development, Saeed indicated that construction is slated to commence in June, coinciding with the commencement of business operations by Vitol. He outlined the project’s phased approach, which encompasses off-port bunkering initially, leveraging the country’s maritime geography, followed by the establishment of a physical port and associated services.
Responding to inquiries about competition from other regional players with similar facilities, Minister Saeed acknowledged Singapore and Sri Lanka’s presence in the market. However, he underscored the Maldives’ strategic location as a key advantage, situated along vital sea lanes. He stressed that the initiative aims not to compete but to diversify the economy, expressing confidence in capturing a share of the bunkering market through strategic partnerships.
The development of the bunkering facility represents a significant stride towards broadening the Maldives’ economic landscape, with stakeholders optimistic about its potential impact on the nation’s growth trajectory.
