The State Trading Organisation (STO) is set to relocate its oil storage facility from Funadhoo to Thilafushi, a move expected to significantly enhance storage capacity and stabilize fuel prices in the Maldives. This announcement was made by Shimad Ibrahim, CEO and Managing Director of STO, during a program aired on PSM News.
According to Shimad, the current facility at Funadhoo has faced a number of operational challenges, particularly limited space and the inability to accommodate larger ships. These constraints have hindered the ability to expand oil storage operations on the island. The new location at Thilafushi, however, promises to address these limitations and improve operational efficiency.
The Thilafushi facility will enable the Maldives to import and store larger quantities of oil at once, as it will have the capacity to accommodate economy-sized vesselsâsomething that has not been possible at Funadhoo due to the island’s infrastructure. This expansion is expected to help stabilize oil prices in the local market, a significant step toward improving the country’s fuel supply chain.
Shimad also revealed that a consultant has already been appointed to oversee the relocation project. With the design and concept development already underway, the project is expected to take between 18 to 24 months to complete.
In addition to the oil storage expansion, the government plans to transform Funadhoo into a special economic zone after the relocation, further enhancing the countryâs economic and logistical capabilities. This transformation is part of broader national efforts to bolster infrastructure and streamline supply chains across the Maldives.
Once completed, the project will not only improve fuel storage and supply, but it is also expected to reduce logistical challenges, benefiting both the economy and consumers.
