News Desk
Male’ — The Maldives is advancing its economic infrastructure, with Economic Development and Trade Minister Mohammed Saeed announcing that international bunkering services, which supply fuel to ships in transit, will continue uninterrupted as a new port in Ihavandhippolhu is developed to expand these operations. Speaking at a press conference at the President’s Office on Monday, the minister outlined the government’s efforts to strengthen the country’s role in global maritime trade.
Launched in September 2024, the bunkering initiative marks a significant step for the Maldives, a nation historically reliant on tourism. Backed by an investment of $15 million to $20 million, the government has partnered with the State Trading Organization Corporation (STOC) and Vitol, a Dutch energy and commodities giant, to provide bunkering services in Ihavandhippolhu, a northern atoll.
The venture is already profitable, generating $1.5 million by November 2024 and projecting annual earnings of approximately 400 million Maldivian rufiyaa ($26 million). Saeed described it as a “world-class business” worth billions globally, underscoring its potential to drive economic growth.
To support this sector, a dedicated port is under construction in Ihavandhippolhu, with an offshore area already operational. “Even without a port, we started the service to avoid delays,” Saeed said, highlighting the government’s determination to overcome logistical challenges. The new port will include oil storage facilities, with two STOC vessels currently managing roughly 4,000 tonnes of oil. The minister noted that daily revenue details, handled by STOC, would not be publicly disclosed.
The northern port project is central to a broader strategy to diversify the Maldives’ tourism-dependent economy and establish the nation as a maritime hub in the Indian Ocean. Saeed acknowledged the complexity of establishing bunkering facilities, calling it “easy to say but a big task.” A new law to regulate these services is in development, and efforts are underway to secure financial support for related infrastructure, potentially from foreign investors if domestic funding is insufficient.
The government’s proactive approach has faced scrutiny. When pressed by journalists on the bunkering service’s profitability, Saeed reiterated its success but declined to share detailed financial data, citing STOC’s private role. He remained confident that the initiative would yield long-term benefits, positioning the Maldives as a key player in regional trade.
Photo: Economic Minister Mohammed Saeed at a press conference.
Credit: President’s Office
