Economic Minister Mohamed Saeed states efforts are underway to reclaim Ihavandhippolhu area which has been allocated for bunkering for the development of a harbor including a fuel storage.
Bunkering service was launched in Ihavandhippolhu on September 19. 2024. The service is provided by State Trading Organization (STO) and Netherlands’s Vitol, using two vessels.
Minister Saeed was questioned regarding the bunkering service during a press conference held by the Economic Ministry on Tuesday.
Citing STO, Minister Saeed said many works have been undertaken as part of the bunkering service, adding preparations are underway to commence physical works on the Maldives Economic Gateway, being developed at Ihavandhippolhu.
The Minister noted that an off-port will be developed in the area which will be utilized to store cargo, He gave an example from neighboring Sri Lanka, which has a huge commercial harbor that boasts land resources.
“While nations close to us have these resources, we do not have these resources yet. We are working on developing these resources which includes land reclamation and establishing arrangements for fuel storage at the said land. This, alongside the construction of the harbor,” he said.
Economic Minister Mohamed Saeed speaks at a press conference on February 18, 2025. (Photo/President's Office)
According to Minister Saeed, these resources will provide further easements than refueling vessels offshore.
While five months have passed since the commencement of bunkering service, the Minister said transactions have taken place for two shipments, adding work is underway on a third shipment.
He was unable to provide the details when questioned on the revenue earned from the shipments and in this trajectory, asked to clarify the details from STO.
Prior to this, Minister Mohamed Saeed has said bunkering service generated USD 1.5 million in revenue while speaking at ‘Haftha 52’ program broadcasted in November, in commemoration of one year in office for the current administration.
Before the commencement of bunkering service, Minister Saeed said that between 300 and 450 international commercial vessels travel across the northern Maldives channel annually, and as such, providing bunkering services to even one percent of the vessels that traveled the channel would increase the Maldives GDP to USD 400 million in the first year alone.