News Desk
In a significant move to reduce its dependence on tourism, the Maldives has inaugurated an international bunkering service in the northern island of Hoarafushi. The initiative, spearheaded by President Mohamed Muizzu’s administration, marks a crucial step in the country’s economic diversification strategy.
Economic Development and Trade Minister Mohammed Saeed attended the launch ceremony, underscoring the government’s commitment to the project. The state-owned company STO, in partnership with energy trader Vitol, will oversee the bunkering operations.
STO has already acquired two vessels, each with a capacity of about 4,000 tons, to facilitate the service. The company reports that bookings are already flowing in, signaling strong initial interest from international shippers.
The inauguration was marked by a water salute for the first ships, with the Marine Bella supplying fuel to the MSS vessel, YC Barrier, in a symbolic first transaction.
The Maldives’ strategic location along major shipping routes positions it well for this venture. Hundreds of ships carrying billions of dollars worth of cargo pass through the region daily, previously relying on bunkering services from other countries in the area.
A key selling point for the Maldivian service is the availability of low-sulfur fuel, which aligns with international maritime regulations aimed at reducing emissions. This offering is expected to attract ships that might otherwise bypass Maldivian waters.
The government projects that the bunkering service could inject $400 million into the economy, potentially creating a new industry worth 6 billion Maldivian rufiyaa. This would represent a significant boost to the country’s current GDP of $6.5 billion.
To complement the bunkering service, Maldives Ports Limited has established Northern Maritime Services, which will provide additional support such as pilotage, docking, crew changes, and maintenance.
President Muizzu’s vision for economic diversification also includes plans for a financial center and a development bank, with the latter already launched. The bunkering service is seen as one of the three pillars in this broader strategy to reduce the country’s reliance on tourism.
As the Maldives steps into this new industry, officials are optimistic that bunkering and related maritime services could become one of the largest income-generating sectors in the island nation’s economy.
