The Maldives’ state-run bunkering initiative has generated over USD 8 million in revenue since its inception in late 2024, according to the State Trading Organization (STO). The figure was disclosed by STO’s CEO and Managing Director, Shimad Ibrahim, during the company’s Annual General Meeting earlier this week.
Launched in September 2024, the bunkering service—backed by a government investment ranging between USD 15 million and USD 20 million—was initially established in the northern atoll of Ihavandhippolhu with the vision of transforming the area into a regional fuel hub. However, Ibrahim noted that most of the current operations and revenue activity are concentrated in the Malé region.
“The initial response has been promising, but we recognize the need for continued improvement,” Ibrahim said, referencing competitive pressures from neighboring Sri Lanka. “To compete with regional players like Colombo, we must make significant enhancements. We are already in discussions with stakeholders to address these areas.”
As part of its early success, STO has provided bunkering services to one of the world’s major shipping lines, including the delivery of 1,200 tonnes of fresh water—a milestone Ibrahim called a testament to international trust. “This signals growing confidence among global shipping companies in the quality and reliability of our service,” he added.
The bunkering operation is run in partnership with Vitol, a globally recognized energy and commodities firm. Two specialized vessels, each capable of transporting 4,000 tonnes of fuel, are deployed to conduct offshore refuelling while ships remain at sea, allowing for efficient turnaround and minimal disruption to international shipping schedules.
Beyond immediate revenue, the initiative is viewed as a strategic move to diversify the Maldivian economy. Government projections indicate that a fully developed bunkering industry could inject approximately USD 400 million into the country’s GDP. Moreover, a broader industry ecosystem valued at nearly USD 390 million is expected to emerge from the service’s expansion.
The Maldivian government is positioning the bunkering operation as a key pillar in its long-term economic strategy, aiming to leverage the nation’s strategic location along major Indian Ocean shipping routes. As discussions on infrastructure upgrades and service expansion continue, the Maldives is working to establish itself as a competitive maritime service hub in the region.
