Gov’t Launches International Bunkering Services in the Maldives
The Maldives marked a significant milestone last Thursday with the launch of its first international bunkering services at the Maldives Economic Gateway in Ihavandhippolhu.
The inauguration ceremony was attended by Members of Parliament representing constituencies in Haa Alif Atoll.
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These services, established in collaboration with the Netherlands-based company Vitol, bring offshore bunkering capabilities to the Maldives, complementing similar operations provided by Vitol in the UAE, Singapore, and Mauritius. The Maldives Ports Limited (MPL) will facilitate the services, while the State Trading Organization (STO) will supply fuel.
The service will be delivered using two tow boats, the 3,528-tonne MT Marine Angel and the 3,929-tonne MT Marine Bella, both of which have been constructed to international safety standards. These vessels, built in partnership with Vitol, are under a bareboat charter arrangement that will see STO fully own them within two years.
During the inauguration event held in Hoarafushi, STO Managing Director Shimaadh Ibrahim outlined that the service currently offers diesel and low-sulphur fuel. Diesel is supplied to yachts and luxury vessels, while cargo and container ships are provided with low-sulphur fuel.
In addition to fuel, bunkering services will also include crew changes, provision of supplies, ship stores, spare parts, repairs, and fresh water. MPL is preparing to introduce 14 additional services in the future.
The area where bunkering has commenced sees an estimated 300 international vessels passing through each month. The government is optimistic about generating significant revenue, even by servicing just one percent of this traffic, with projections suggesting earnings of up to USD 400 million annually.
MPL CEO Highlights Growing Demand for Bunkering Services and Announces Expansion Plans
Mohamed Wajeeh Ibrahim, the Chief Executive Officer (CEO) of Maldives Ports Limited (MPL), has underscored the increasing demand for bunkering services, which MPL is now positioned to offer. His remarks were made during the inauguration of international bunkering services.
CEO Wajeeh also referenced President Dr. Mohamed Muizzu’s broader efforts to enhance the maritime sector as part of a strategy to bolster the Maldivian economy. He highlighted MPL’s pivotal role in providing bunkering services and revealed plans to establish a container terminal and a free zone in Hoarafushi, Haa Alif Atoll, to stimulate export growth.
In addition, Wajeeh reaffirmed MPL’s commitment to fostering economic development through its maritime activities. He noted that MPL would provide 14 maritime services from its office in Uligan, Haa Alif Atoll. He also mentioned that orders have been placed for water supply from a company that operates a fleet of 17 Greek vessels.
Historic moment as international bunkering service begins in the North!
MPL's CEO participated in the ceremony, sharing insights on the future development plans of maritime services in the north.#uthurumaritimeservices #MaldivesPortsLimited #MPL pic.twitter.com/wIwkW7AFIT— Maldives Ports Limited (@Portmv) September 19, 2024
During the ceremony, Wajeeh confirmed that the main trade port in Malé City would be relocated to Thilafushi, Kaafu Atoll, by the end of 2027. He further outlined development plans for the Addu City port and upcoming maritime service projects in Laamu Atoll.
This expansion of services and infrastructure is expected to enhance the Maldives’ position as a key player in the regional maritime industry.
Significant Investment in the Project
Economic Development and Trade Minister Mohamed Saeed revealed at the inauguration that STO had invested over USD 15 million in the project. While not aiming to compete with major bunkering hubs like Singapore or Sri Lanka, Saeed stressed that the government’s goal is to gradually expand its services.
Saeed also highlighted that Vitol executives had met with President Dr Mohamed Muizzu to discuss further investment opportunities in the Maldives. He commended the current administration for its commitment to swiftly establishing the bunkering services, contrasting it with delays under the previous administration.
The introduction of bunkering services is expected to significantly boost the Maldivian economy, further positioning the country as a key player in the regional maritime industry.
