CEO and Managing Director of State Trading Organisation (STO), Shimad Ibrahim, has announced that relocating the oil storage facility from Funadhoo to Thilafushi will significantly enhance storage capacity and lead to potential reductions in oil prices.
Speaking on a programme aired on PSM News, Shimad highlighted the numerous challenges currently faced in storing oil at Funadhoo. He explained that the limited space and the inability of large ships to dock at the island have constrained the expansion of operations. Relocating the facility to Thilafushi will address these issues and marks one of the largest projects undertaken by STO to date.
The new facility at Thilafushi will allow the Maldives to import and store larger quantities of oil simultaneously, enabling the use of economy-sized vessels, which are currently unable to access Funadhoo due to infrastructural limitations. Shimad stated that this move would enhance operational efficiency and contribute to stabilising oil prices in the market.
Shimad revealed that a consultant has already been appointed to oversee the relocation project. He said thee detailed design and concept development are underway, with practical work expected to commence soon. He further added the project is anticipated to take between 18 to 24 months to complete.
The government plans to transform Funadhoo into a special economic zone following the relocation of the oil storage facility. This initiative aligns with broader national efforts to enhance the Maldives' economic and logistical capabilities. STO expects the project to improve the country's fuel supply chain and reduce logistical challenges.