Bunkering services; a significant industry in the long-run

Managing Director of State Trading Organisation (STO) Shimad Ibrahim has revealed that the international bunkering services were currently in the first phase, emphasising the long-term significance of the industry.

In a social media post, Managing Director Shimad stated that every investment follows a life cycle. He pointed out that the Maldives is presently in the initial phase of providing bunkering services, but the country’s strategic location will facilitate the rapid growth of the industry in the future.

International bunkering services were launched in the Maldives in Ihavandhippolhu during September, with a government investment ranging from USD 15 million to USD 20 million. The services are being provided by STO, in collaboration with a globally renowned company, Vitol Bunkers. To provide the services, STO has brought to oil tankers with a capacity of 4,000 tonnes.

While the Maldives currently offers offshore bunkering services, the government plans to introduce onshore bunkering services in the long-run. The government projects that the bunkering services will generate an additional USD 400 million, creating a new industry valued at USD 390 million.