Gwadar Deep Sea Port - Pakistan's Pride

[Neo]

A look at Gwadar deep-sea port, Strategic and Econmic Dimensions

10/23/2004

Once a small fishing town along the Makran Coast is now set to become a mega seaport which will fulfill the requirement of three geographically important regions, The entire subcontinent, Wes China, central Asia States, and Afghanistan.

The Gwadar Project, recently inaugurated by President Musharraf, is the fourth mega project initiated by the present regime for the uplift of the people of Balochistan-Pakistan's strategically important, yet in socio-economic terms, most neglected province. The other three important projects are Mirani Dam, revival of Saindak Project and Coastal Highway.

Located at the Arabian Sea Coast with vast, arid and extremely backward Mekran Division of Balochistan as hinterland, Gwadar deep sea port, being built with Chinese co-operation, will not only enhance Pakistan's strategic importance in Southwest Asian region, it will usher in a new era of socio-economic development in Balochistan because, as President Pervez Musharraf has rightly pointed out, this area, after the construction of Gwadar Port, will become hub of economic and trade activities in the whole region . The people of Balochistan have for long been in need of such development projects, but unfortunately, almost every past regime had paid only lip service to their demands, doing nothing practically . The need for an alternate deep-sea port has since long been recognised, both from strategic view-point and economic perspectives. Gwadar was the best choice because it offered ideal conditions for building a deep-sea port and secondly, it is situated 470 km away from Karachi, making it less vulnerable to the Indian naval blockade, which Pakistan faced during the 1971 War . Despite the fact that Karachi was increasingly becoming clogged due to heavy cargo, the work on Gwadar suffered from foot-dragging and official apathy. When the military government assumed power, it gave the go ahead and initiated negotiations with China to speed up work on the Gwadar Project. For this purpose, Pakistan's Finance Minister, Mr. Shaukat Aziz visited Beijing in August last year where he signed an agreement with Chinese leaders on the construction of Gwadar deep-sea port and coastal highways. Under the agreement, the Chinese will provide $ 200 million to Pakistan for the construction of the first phase of the project. The total cost would be $ 250 million and the work is proposed to be completed in three years. President Musharraf performed the groundbreaking ceremony of Mekran Coastal Highway, Phase II, Turbat-Mand Road and Mirani Dam on August 17 last year in Gwadar. Pakistan's Minister for Communication, who declared that the area would be made a Free-Trade Zone for exports to the Gulf region, also accompanied the President

The construction of a deep-sea port at Gwadar is just one component of the Greater Gwadar Plan . Under this Plan, which will be carried out by Gwadar Development Authority, in addition to Gwadar port, a network of roads, connecting Gwadar with Karachi, Pasni , Ormara and Turbat will be constructed in four phases. The Coastal Highway linking Karachi with Gwadar (675 km) is being built simultaneously with the port. Other highways, from Pasni to Gwadar (135km), Ormara-Gwadar (275km) and Gwadar-Turbat (188 km) will be built in Phase II of the project. The first two phases of the project, costing about Rs. 3 billion, will be completed in two to three years. In phase III, Pasni will be connected with Ormara and in the fourth phase, Pasni will be connected to Gupt at the Iranian border. This network of roads will finally be connected with China through the Indus Highway. Under an agreement, Pakistan, China, Kazakhistan, Kyrgizstan and Uzbekistan are already committed to developing extensive railroad links from Central Asia and the Chinese province of Sinkiang to the Arabian Sea Coast. The completion of this communication network will not only facilitate the movement of goods from China and Central Asian Republics to the countries of the Persian Gulf, Middle East, East Africa, the Indian Ocean and beyond through Gwadar, the countries of these regions will also have an easy and short route for access to Central Asia for trade and economic co-operation purposes. In this scenario, Gwadar port emerges as a place of great strategic value, giving tremendous boost to Pakistan's importance in the whole region, extending from the Persian Gulf through the Indian Ocean to Southeast Asia and the Far East.


FROM PAKISTAN'S PERSPECTIVE, THE CONSTRUCTION OF THE GWADAR PORT WILL STRENGTHEN ITS ECONOMY AND DEFENCE. GWADAR IS SITUATED AT A DISTANCE OF 470 KM WESTWARD FROM KARACHI ON THE ARABIAN SEA COAST, WHICH MAKES IT A BIT DIFFICULT FOR THE INDIAN NAVY TO ACHIEVE A NAVAL BLOCKADE OF PAKISTAN. The project is being built with Chinese help and co-operation, which will, as President Musharraf said, further strengthen Pak-China friendship . Although Pakistan, during the last about four decades, has provided an opening to China on the countries of the Persian Gulf, Middle East and East Africa, Gwadar will give the Chinese an opportunity to establish for the first time a naval presence in the Arabian Sea and Western part of the Indian Ocean. The Chinese are already comfortably placed in Myanmar in the eastern part of the Indian Ocean; their presence at Gwadar will further increase their naval presence in the Indian Ocean, which has gained strategic prominence in view of America's war on Afghanistan. The Indians as well as Americans seem to be considerably perturbed over the Chinese participation in the Gwadar Project, perceiving it as a bid by the Chinese to gain a strategic footing in the North western part of the Indian Ocean, where the Americans maintain a formidable naval presence through a chain of military bases and concentration of warships and submarines. The Indians have become so alarmed over the Chinese participation in the construction of Gwadar port that their policy makers and strategic planners have strongly urged their government to immediately take measures for the modernisation and up-gradation of the Indian navy, which with two fleets is already the largest naval force in Southeast Asia.

The Gwadar Project, when completed, will bring urgently needed socio-economic development to the Mekran Division of Balochistan, which is the most backward area of the province . Despite the fact that the region is of great historical and strategic value, it lags far behind the other parts of Balochistan in terms of literacy attainment, health facilities and employment opportunities. There is no industry and because of the lack of water, only a small portion of land is brought under cultivation. Most of the people live in rural areas without essential civic amenities like electricity, safe drinking water and health facilities. The dominant profession is cattle breeding, which has also badly suffered over the last few years due to persistent drought and consecutive failure of rains. The Gulf had been a major source of income for the local people, but due to 1991 War and deteriorating economic conditions in the Arab Sheikhdoms, a large majority of the people from Mekran working in the Gulf countries as skilled and unskilled workers have recently returned.

The return of expatriates has not only caused a set back to an already fragile economy of the region, it has led to the rise of serious social problems like narcotics use, smuggling, unemployment, crime and alienation among the youth. The implementation of mega projects like Gwadar is, therefore, extremely important in Balochistan and particularly in Mekran, which politically is one of the most sensitive areas of Pakistan. Apart from such benefits like enhancement of strategic value of the country and tangible socio-economic benefits for the people of the region, the implementation of Gwadar Project would restore the credibility of the federal government of Pakistan among the people of Balochistan who, for the last five decades, have been fed on false promises of development. Take for example, Mirani Dam and Saindak Project. The people of Dasht valley have been hearing about the building of a dam on the Dasht River since fifties. Many a time the plans for its construction were announced. But, then, nothing was heard about them. It is only the present government that has taken concrete steps to implement the Mirani Dam Project. Similarly, the Saindak Project has been revived after a delay of two decades. There is a widespread perception among the people of Balochistan, particularly in Mekran division and coastal areas of the province that their areas are deliberately kept underdeveloped by the federal bureaucracy for political reasons. Through implementation of mega projects like Gwadar, the present government will not only cause socio-economic development in the region, it will make an important contribution to the process of national integration.

[Neo]

Gwadar deep sea port: vision turns into reality

GWADAR: Gwadar deep-sea port, Pakistan’s third modern port and Balochistan’s first has become operational last week after its formal inauguration by President General Pervez Musharraf. The port will serve as a strategic storage, transit facility and a regional hub for major trade activities, along some of the busiest sea-lanes in the region.

The port operations commenced with the unloading of cargo from three cargo ships, which anchored earlier.

With the inauguration of Gwadar port, the vision and initiative of President Musharraf on Gwadar port has turned into reality.

The operation and management of the port was recently handed over to the Singapore Port Authority (SPA) under a 40-year agreement between the Gwadar Port Authority (GPA) and the Concession Holding Company (CHC) – a subsidiary of the SPA that is operating 22 ports in 11 countries, and will invest $550 million in next five years. The Gwadar Port can currently handle bulk carriers of up to 50,000 DWT through its three berths. A 5 km long channel, 14.5 meters deep and being close to the shipping lanes, the cargo ships will spend lesser time entering and leaving the Port.

The port will not only promote trade and transport with Gulf States, but will also provide tans-shipment of containerized cargo, unlock the development potential of hinterland and will become a regional hub for major trade and commercial activities.

Amidst the serene surroundings the rapidly expanding town of Gwadar today has numerous hotels and motels, including a five-star hotel Overlooking the Arabian Sea and the Gulf, the place has rich potential for tourists, from not only Pakistan, but also abroad.

Gwadar is the first seaport of Balochistan, which was completed in three years at a cost of sixteen billion rupees with the financial assistant of china. It will serve as an economic and trade transit avenue for Pakistan, Afghanistan, Central Asia and Middle East countries.

Gwadar, Pakistan,s first deep seaport, after functioning would change the fate of the area by transforming its socio-economic landscape. It would generate tremendous opportunities for the people of Balochistan as thousands of jobs and new business will be created by it.

Free economic zones would be set up near the port that would help harness vast potential in natural resources of the area. This port would also lead to the development of heavy and large-scale industries, petrochemicals and manufacturing sector. Pakistan is already strategically located and this seaport would increase this importance and make the access to the Central Asian States more convenient.

Singapore Port Authority, which would look after Gwadar port for 25 years, is running ports in almost 9 countries and would invest almost three billion dollars for the development of this port.

This port had been declared tax-free for 40 years and it is estimated that almost 50 million ton cargo would go through this port in next 10-15 years. It would give boost to the economy of the country and Pakistan would become the economical and trade hub of the region.

Gwadar is located on the southwestern coast of Pakistan, close to the Strait of Hormuz in the Persian Gulf, through which more than 13 million bbl/d of oil passes. It is strategically located between three increasingly important regions of the world: the oil-rich Middle East, heavily populated South Asia and the economically emerging and resource-rich Central Asia.

Gwadar Port is expected to generate billions of dollars in revenue and create two million jobs. This port would also lead to the development of heavy and large-scale industries, petrochemicals and manufacturing sector.

With a population of 125000, the Gwadar Town on Makran Coast is now set on way to become a hub of shipping, commercial and industrial activities.

The port comes as a much-needed national requirement in the wake of the rise in cargo traffic on Country’s ports, which are operating at full capacity.

It is expected that Pakistan’s maritime traffic would rise by three folds by 2010. With the construction of a third port, it is estimated that Pakistan will not only be able to meet its own requirements of the future but also offer its port facilities to the neighboring countries. app

[Neo]

Gwadar an ideal destination for local, foreign investors

ISLAMABAD: With strategic and economic significance, Gwadar is well poised to unleash constructive opportunities for local as well as foreign investment in diverse fields. Development work and business activities are gaining impetus at a fast pace with the Gwadar site getting transformed into an ideal destination for potential investors. Gwadar has better potential and investment opportunities. The port has been constructed and recently one ship carrying 60,000 tonnes of wheat has docked. Once this port becomes fully operational, it will have more advantages. Pakistani entrepreneurs along with foreign investors can make joint ventures at Gwadar, which is not only flanked by planned location but is also a vital corridor to rich oil and mineral resources with close immediacy to Central Asian States, observed Chief Executive of Gwadar Business Associates, Col (R) Fazal-e-Maqbool Afridi.As far as its geographical location is concerned in comparison to the Gulf ports, especially Dubai, it gives more facilities and will handle more cargo and trade because Gwadar is a deep-sea port and is located on a main shipping route. For Dubai, ships have to wait for days for route clearance due to Strait of Hormuz. The landlocked Central Asian States are also dependent on Gwadar, expressed Col Afridi.

China and other countries shall have short route to the world market maintained through Gwadar. The location of Gwadar Deep Sea Port is such that the whole world businesses converge and diverges at this place.

The whole region can also avail trans-shipment facility as the transit cargo (liquid and dry both) can easily be undertaken from Gwadar and transported to any part of the world in short span of time in comparison to other ports, he viewed. Due to trans-shipment there will be lots of requirements of warehousing and container yards, he stated adding, being a deep sea port on a main shipping route it will facilitate the movement of cargo.

The trade and business activities of all kinds and quantity, from needle to ship, will also flourish at Gwadar irrespective of the cost. Import and export of all items and magnitude is possible, because the means of transportation like sea, road, railway line (in near future) are available and linked with all important countries, he maintained.

Being a deep sea port and facilities for transportation available, industry of any kind is feasible, both of raw materials and finished products, the chief executive said continuing, the mineral deposits of Central Asia have no shorter route to transport them to the world markets, than Gwadar.

Similarly, the developed world can also reap these benefits only from Gwadar.

The transport industry will have to import all kinds of vehicles, especially heavy ones for fast delivering of goods at remote destinations as well as in the city limits. Gwadar Port will also be termed as an energy port. The gas and oil deposit of CIS will find their new storage destination in Gwadar because of its natural flow direction. Even Iran can benefit from Gwadar by having opening to the world market for its gas and oil.

The Pacific states and all those countries which are short of energy can easily be supplied Liquid Natural Gas (LNG) from Gwadar. Fishery is one of the most important economic activities in the Gwadar district, in which a vast majority of population is engaged. The district has a 600 kilometres long coast line which provides residents not only the means of income but also the food to subsist.

About one fourth of the total catch of different varieties in Pakistan is found in district Gwadar. On an annual basis there is potential for an additional catch of at least thousands of tonnes. Real-estate is a vibrant industry, he observed adding, there are plenty of chances available starting from construction as every thing new has to be developed and built. It has lot of potential for prices to rise and any investment made will fetch a handsome amount for investors.

The construction industry will also have a boom at Gwadar as there is a dearth of place to live or open an office. Every thing new has to be constructed.

Manufacturing industries will develop, especially automobile, steel re-rolling mills, ship building, refineries, fertiliser and electronic industry, he added.

[Neo]

Tax-free zones in Gwadar planned: Wooing foreign investment

ISLAMABAD, June 16: The government has decided to allow China and South Korea to set up their tax-free special industrial development zones (SIDZs) in Gwadar. The step is aimed at attracting more foreign investment in the region. Officials told Dawn on Thursday that more concessions were being offered to foreign investors for the second phase of development of Gwadar, which includes dragging and deepening of the port. The second phase began this month. The officials said that with the beginning of the second phase, a long-term process had started to set up industrial zones in the port city along with the development of new roads for which the government had earmarked thousands of acres of land. The second phase would facilitate trans-shipment of Central Asian states, Afghanistan, Iran, China, India and many other countries. “A number of tax concessions and facilities had already been made available to the local and foreign investors in Gwadar, but we are considering more such concessions not only to have a harbour there but also a complete port city which would be as important as the Karachi Port,” said a senior official of the ministry of finance. He said that there existed a huge potential to build an oil refinery at the Gwadar port on the pattern of Singapore port for facilitating trans-shipment.

The official said that a number of countries, including those of the region, had expressed their willingness to establish duty-free industrial zones in Gwadar. However, he confirmed that initially China and South Korea would set up their industrial zones for which more concessions could be contemplated.

The port will generate foreign exchange earning as the vessels registered under foreign flags are required to pay some portion of charges in foreign exchange through their local agents for cargoes. The amount earned will not be reflected in the Gwadar port account but will contribute to national foreign exchange earnings. In the present rate of Karachi Port Trust tariff, the foreign exchange percentage is estimated at 33 per cent of charges payable to the port authorities. Gwadar has an edge over the Port Salalah of Oman and Iran’s proposed upgradation of Port Chah Bahar. However, Gwadar will have to compete with both the foreign ports.

The sources said that Gwadar was expected to serve as a ‘mother port’. The port situated at the strategic location opposite to Straits of Hormuz and on the mouth of Persian Gulf would provide port, warehousing, trans-shipment and industrial facilities for trade with over 20 countries, including Gulf states, Central Asian republics (CAR), Iran, East Africa, Red Sea countries and North West parts of China and India.

The Export Processing Zone (EPZ) has also been planned for assembling plants and other industries which are to be set up by the prospective manufacturers for marketing in the region of Gulf and Central Asian republics.

Oil storage yard and refinery have also been proposed in the north of Gwadar town near the East bay for which an area of 1,000 hectares has been identified. Initially, a storage tank farm will also be constructed followed by a refinery in future. “Gwadar is going to be one of the major centres for sizable local and foreign investment in this region,” another official said, adding that with improvement of law and order in Balochistan, interest of the local and foreign investors was increasing to make new investment in the province, especially in Gwadar. The government last month released the first instalment of Rs16.3 billion to help undertake deepening of the Gwadar port which would cost $865 million.

China has promised to provide $50 million soft loan for the second phase of the Gwadar port development. The second phase – Gwadar Deep Water Port Project – was expected to be completed by 2010. The sources said that the phase-II will be executed by the private sector to accommodate 50,000 dwt container ships, 100,000 dwt dry bulk carriers and up to 200,000 dwt oil tanker, three container terminals (2010m quay length), one bulk cargo terminal (305m length), one grain handling terminal (305m length), one twin-pier oil terminal (688m length), breakwater (600m length), approach channel (16.0/ 20.0m deep), back-up areas, craft and equipment and building, etc.

The phase-I was built by the public sector with the Chinese assistance at a revised cost of $298m. It included three multipurpose berths (602m quay length, one service berth (100m length), 4.35km navigable channel (11.6/12.5m deep), roads, plinths and transit shed, operational craft and equipment, including navigational aids and shore-based port buildings and allied facilities. The sources said that the completion of phase-II will also help meet strategic needs and standby facility to the Port Qasim and the Karachi Port in case of emergencies arising out of any mishaps. The construction of phase-II will be completed on build-operate-own (BOO) and build-operate-transfer (BOT) basis.

[Neo]

Chinese mulling $13b investment in Gwadar

The Chinese petroleum industry has indicated an interest in shifting its excess capacity to Gwadar, bringing in estimated investment of $13 billion, a senior government official told Daily Times on Wednesday.

The China Chamber of Petroleum Industry (CCPI) and All China Federation of Industry and Commerce (ACFIC) conveyed to Pakistani authorities during a recent visit that the Chinese petroleum industry is keen to invest in Pakistan”s energy sector, the official said.

The ACFIC and CCPI indicated that both the public and private sectors should cooperate in energy projects in Pakistan, with the Chinese private sector in particular seeing a lot of opportunities here, the official said.

This cooperation will not be restricted to building an oil pipeline to set up an energy corridor to Gwadar, but also in shifting energy related industry to Pakistan.

However, the government will need to provide strong support to lay down a framework for a safe financial, investment and security environment in Balochistan to attract this investment, the official said.

He said the Chinese petroleum industry sees four potentially fruitful projects. Firstly, an oil pipeline linking Gwadar to Xinjiang in China to set up an energy corridor. The economic viability of such a project is yet to be worked out. Secondly, the development of Gwadar Port Energy Zone, where the Chinese could set up an oil refinery with a capacity of 21 million tonnes.

China has been preparing a similar project along the Yangtze River in collaboration with Saudi Arabia for the last two years, but has now indicated it could shift the project to Pakistan, the official said. Other countries besides China will also be invited to invest in the project.

Thirdly, the Gwadar energy zone could accommodate other energy sector industries. The Chinese business groups said that China has excess capacity in the petroleum services industry and planned to move the excess capacity to Dubai, but was now considering shifting it to Gwadar, the official added. According to their initial estimates, the Gwadar Port Energy Zone could attract investment of up to $13 billion.

Fourthly, the Chinese petroleum industry also indicated an interest in oil and gas exploration projects in Pakistan, the official said. The Chinese business groups had proposed that a Pak-China energy and trade cooperation promotion association be established for such projects.

The association would include members from the oil and gas sector and other industries in the power sector. They had also suggested that a Pak-China joint investment company be set up to finance these projects, the official said.

Source: Daily Times

[Neo]

Refineries at Gwadar must: president

KARACHI, Aug 26: President Pervez Musharraf said on Friday that Pakistan must establish oil refineries at Gwadar to refine oil of Gulf countries for international market. “If we can develop large oil terminal and set up oil refineries at the Gwadar port located at the mouth of the Gulf. We can refine crude coming from the Gulf and going out to the world market,” President Musharraf noted while speaking at the inauguration of $480 million 817km white oil pipeline from the Port Qasim to Mahmood Kot, built by Pak-Arab Pipeline Company (Papco).

Sindh Governor Dr Ishratul Ibad Khan, Chief Minister Dr Arbab Ghulam Rahim, Petroleum and Natural Resources Minister Amanullah Khan Jadoon, the minister of state for petroleum, SBP Governor Dr Ishrat Husain, the Sindh chief secretary, Chinese Ambassador Zhang Chunxiang and other high officials were also present on the occasion.

President Musharraf said that world oil prices were rising because of lack of refining capacity and not because of production shortage. “There is a big gap between demand and supply of refined oil. Therefore, I think, Pakistan must go very strongly towards establishing oil refineries,” he noted.

It would also serve the strategic interests of the country, he observed.

He said the Gwadar port had been completed and it would be commissioned in June 2006. “The port is ready but we are dredging it to 15 metres depth for accommodating larger vessels. It is an ideal situation for Pakistan.”

“A similar pipeline can be laid from Gwadar to the upcountry to transport oil products as a feasible proposition,” he observed.

He said the government would complete all the initiated projects. Referring to Papco, he said that he was associated with this project since its inception when Pakistan signed a memorandum of understanding (MoU) with former Chinese premier Zhu Rongi (in 2002).

President Musharraf said dozens of mega projects were on track. Some of them have been completed and others will be completed within the coming year.

The president lauded the efforts of Parco, Shell Pakistan, PSO and Caltex for this joint venture of great importance and strategic significance to Pakistan, saying it will give a great boost to the economy of the country. “It is the most secure means of transporting oil products to the upcountry which consumes 60 per cent of petroleum products,” he said.

He said this pipeline would go a long way in catering to the needs of Afghanistan and Central Asian republics in an environment-friendly manner.

He also complimented China Petroleum Engineering and Construction Corporation and Techno Engineering Pakistan for early completion of the project.

President Musharraf pointed out that it would replace the transportation of oil products by tankers which had been crowding the area in Keamari.

He said the government wanted to accelerate the process of exploration in offshore and onshore areas. “We also want to accelerate the process of distribution of gas and oil to all areas of Pakistan.”

“We will take gas to all parts of Pakistan,” the president promised. He said the government was (currently) evaluating a proposal to install CNG or LNG gas tanks outside those towns which are located in far-flung areas of the country and lay a distribution system within these towns to provide gas to the locals through pipelines at half the price of cylinder.

President Musharraf said he had given the deadline of January 1, 2006 for this project to the authorities concerned and hoped that they would not violate the time frame.

He said the government, in its efforts to reduce dependence on oil for energy production, had slashed the ratio from current 70 per cent to 59 per cent and wanted to further decrease.

Earlier, the petroleum and natural resources minister said the pipeline would be sufficient to meet the oil product demand for the next 35 to 40 years.-APP

[Neo]

China to help build new Gwadar airport: PM

ISLAMABAD: Prime Minister Shaukat Aziz has said arrangements for the construction of the new Gwadar airport will soon be finalized with the Chinese government.

He said operationalization of Gwadar port had ushered in a new era of development and prosperity for the people of Balochistan, as it would generate unprecedented economic activity in the area.

Mr Aziz was talking to Balochistan governor Owais Ahmed Ghani who called on him at the Prime Minister’s House on Tuesday.

The prime minister said the newly-inaugurated Gwadar deep-sea port would serve as a trade corridor for the whole region, linking Balochistan with Afghanistan, the Central Asian Republics and China.

He said the government was now undertaking the construction of the fourth port of Pakistan at Sonmiani, which would be developed as a port city bearing the name Alladin Cove. In addition to being a port, the new city would be a tourist resort and an industrial hub and would open new vistas of economic opportunities and create thousands of jobs which would benefit not only Balochistan but the entire country, he said.

Mr Aziz said the government was focusing on providing employment opportunities to the youth of Balochistan and their quota had been further increased to six percent to give them full and effective representation in government jobs. staff report

Source: Daily Times

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Gwadar Port set to become key Pak and global strategic hub

Karachi, Mar.23: Gwadar, located on the southwestern coast of Pakistan, was just a small fishing hamlet at one time, but now is set to become not only a hub of shipping and commercial and industrial activities, but also a key geo-strategic location.

Located close to the Strait of Hormuz in the Persian Gulf through which over 13 million barrels of oil pass every day, this coastal town located at the intersection of oil-rich Middle East, South Asia where one-fifth of the world’s population lives and Central Asian Republics (CARs) having vast reserves of oil and minerals, is also likely to emerge as the country’s most strategically-located deep-sea port.

Gwadar port, the third deep-sea port of Pakistan, may not seem to be of use to Pakistan as there is no need of a feeder port in Balochistan, yet it will have global ramifications.

Countries like Russia and China will find this port of great importance to their futuristic needs as both have so far been unsuccessful in establishing ports in hot waters.

China’s decision to finance the construction of the Gwadar port and the coastal highway linking the port to Karachi will help its plans to develop western China. The distance from Kashgar to the Chinese east coast ports is 3,500 km, whereas the distance from Kashgar to Gwadar is only 1,500 km. The cost benefits to China of using Gwadar as the port for western China’s imports and exports are evident.

China has no blue water navy and feels defenceless in the Persian Gulf against any hostile action to choke off its energy supplies. To cope with the new challenges, the Chinese leadership envisaged a new plan that was called by the US as “assembling a string of pearls”.

Besides Gwadar, this string includes Chittagong of Bangladesh in the Bay of Bengal and Myanmar in the Indian Ocean. China has helped build the Chittagong port in Bangladesh where it is seeking an extensive naval and commercial access. In the case of Myanwar, Beijing has showered billions of dollars in military aid.

It has provided support for building several ports, road and rail links from the Chinese province of Yunnan to the Bay of Bengal, and a monitoring post on Myanmar’s Coco Islands for sea traffic.

The new Chinese plans have rung alarm bells in India and the US too. India feels that it is encircled by China from three sides – Myanmar, Tibet and Pakistan. To counter Sino-Pak collaboration, India has brought Afghanistan and Iran into an economic and strategic alliance.

Following the Chinese ambitions in the region, India has pursued closer military ties with the US and issued a new naval doctrine stressing the need of protecting energy routes and responding to Beijing’s inroads into the Arabian Sea.

To counter the Gwadar port that is also called the Chinese Gibraltar by Washington, India has built Chabahar port in Sistan-Balochistan province of Iran – just adjacent to Gwadar. India is also helping Iran in building a 200km road that will connect Chabahar with Afghanistan. It will provide access via land to the port for their imports and exports to and from Central Asia. Presently, India is in urgent need of a shorter transit route to quickly ship its trade goods to Afghanistan and Central Asia.

Despite the fact that the Gwadar port is meeting Chinese purposes, the US has not objected to building the sea port. President Bush sees Gwadar as an advantage rather than a threat. He is confident that Pakistan will not allow the Chinese Navy to block US trade goods on the route and inside sources believe Musharraf has made some promises in that regard.

Source: Daily News

[Neo]

Gwadar deep sea port: vision turns into reality

GWADAR: Gwadar deep-sea port, Pakistan’s third modern port and Balochistan’s first has become operational last week after its formal inauguration by President General Pervez Musharraf. The port will serve as a strategic storage, transit facility and a regional hub for major trade activities, along some of the busiest sea-lanes in the region.

The port operations commenced with the unloading of cargo from three cargo ships, which anchored earlier.

With the inauguration of Gwadar port, the vision and initiative of President Musharraf on Gwadar port has turned into reality.

The operation and management of the port was recently handed over to the Singapore Port Authority (SPA) under a 40-year agreement between the Gwadar Port Authority (GPA) and the Concession Holding Company (CHC) – a subsidiary of the SPA that is operating 22 ports in 11 countries, and will invest $550 million in next five years. The Gwadar Port can currently handle bulk carriers of up to 50,000 DWT through its three berths. A 5 km long channel, 14.5 meters deep and being close to the shipping lanes, the cargo ships will spend lesser time entering and leaving the Port.

The port will not only promote trade and transport with Gulf States, but will also provide tans-shipment of containerized cargo, unlock the development potential of hinterland and will become a regional hub for major trade and commercial activities.

Amidst the serene surroundings the rapidly expanding town of Gwadar today has numerous hotels and motels, including a five-star hotel Overlooking the Arabian Sea and the Gulf, the place has rich potential for tourists, from not only Pakistan, but also abroad.

Gwadar is the first seaport of Balochistan, which was completed in three years at a cost of sixteen billion rupees with the financial assistant of china. It will serve as an economic and trade transit avenue for Pakistan, Afghanistan, Central Asia and Middle East countries.

Gwadar, Pakistan,s first deep seaport, after functioning would change the fate of the area by transforming its socio-economic landscape. It would generate tremendous opportunities for the people of Balochistan as thousands of jobs and new business will be created by it.

Free economic zones would be set up near the port that would help harness vast potential in natural resources of the area. This port would also lead to the development of heavy and large-scale industries, petrochemicals and manufacturing sector. Pakistan is already strategically located and this seaport would increase this importance and make the access to the Central Asian States more convenient.

Singapore Port Authority, which would look after Gwadar port for 25 years, is running ports in almost 9 countries and would invest almost three billion dollars for the development of this port.

This port had been declared tax-free for 40 years and it is estimated that almost 50 million ton cargo would go through this port in next 10-15 years. It would give boost to the economy of the country and Pakistan would become the economical and trade hub of the region.

Gwadar is located on the southwestern coast of Pakistan, close to the Strait of Hormuz in the Persian Gulf, through which more than 13 million bbl/d of oil passes. It is strategically located between three increasingly important regions of the world: the oil-rich Middle East, heavily populated South Asia and the economically emerging and resource-rich Central Asia.

Gwadar Port is expected to generate billions of dollars in revenue and create two million jobs. This port would also lead to the development of heavy and large-scale industries, petrochemicals and manufacturing sector.

With a population of 125000, the Gwadar Town on Makran Coast is now set on way to become a hub of shipping, commercial and industrial activities.

The port comes as a much-needed national requirement in the wake of the rise in cargo traffic on Country’s ports, which are operating at full capacity.

It is expected that Pakistan’s maritime traffic would rise by three folds by 2010. With the construction of a third port, it is estimated that Pakistan will not only be able to meet its own requirements of the future but also offer its port facilities to the neighboring countries. app

Source: Daily Times

[Neo]

Gwadar-A paradise for investors

Located at the entrance of the Gulf and about 650-km from Karachi, Gwadar has immense Geo-strategic significance on many accounts. The continued unstable regional environment in the Gulf in particular as a result of the Iran/Iraq war, the Gulf war and the emergence of the new Central Asian States has added to this importance. Considering the Geo-economic imperative of the regional changes, the ADB”s Ports Master Plan studies considered an alternate to the Gulf Ports to capture the transit trade of the Central Asian Republic (CAR) as well as the trans-shipment trade of the region. Both Karachi and PQA were considered for such development but were found unattractive to major shipping lines due to the remoteness from the main shipping routes, the limitations of draft for mother ships and large bulk oil carriers and the comparative long turn around times. The ADB studies however considered Gwadar to have the most advantageous location for such an alternative port in the region, which could handle mother ships and large oil tankers in due course.

Keeping that aspect in view as well as the inherent strategic and economic benefits that Gwadar Port offered, the transport plan of the 8th Five Year Plan (1993-94) of Pakistan included the development of Gwadar Port as an essential element of its aims and objectives. The Government of Pakistan therefore under took technical and financial feasibility.

The Project started on 22 March 2002 is on fast track. In fact it would surprise many that with initiative and calculated risk, we have received merchant ships since January 2003 and have been able to off load hundreds of tones of cargo imported for the Project, thus saving previous time and money which otherwise is required for transportation of the same cargo by road from Karachi/PQA to Gwadar.

Keeping in view of Gwadar utmost importance Government is offering maximum incentives for investment in Gwadar to make the port a successful venture. The success of the port was only possible through provision of maximum incentives to investors, like exemption of federal taxes up to 30 years, which could further be extended for another 20 years. There was 130 free zones in different countries of the world, which had attracted foreign investment through maximum incentives Government of Pakistan offering 12 free zones like established in Turkey where a lot of incentives had been given to investors.

A number of tax concessions and facilities had already been made available to the local and foreign investors in Gwadar. The Government is offering maximum incentives for investment in Gwadar to make the port a successful venture. The port would not only play a vital role in boosting up economy of the country but would also be beneficial for poor masses of Gwadar and Balochistan. The success of the port was only possible through provision of maximum incentives to investors, like exemption of federal taxes up to 30 years, which could further be extended for another 20 years.

The government has decided to allow China and South Korea to set up their tax-free special industrial development zones (SIDZs) in Gwadar. The stop is aimed at attracting more foreign investment in the region. China, has also build a dry port at the Pakistan-China border, near the present Pakistani border point of Sust, it is located on the Karakoram Highway leading from Pakistan into Xinjiang province. It was to handle the fast growing trade to and free Chinese Western Province.

As far as the domestic benefits to Pakistan are concerned, Gwadar will supplement Karachi and Port Qasim that have already reached their handling capacity of around 20 million tones a year. The capacity requirement is projected to increase manifold by 2015. The addition of the third port will enable Pakistan not only to meet its future requirements, but it will also meet the needs of the expected global cargo traffic to and from Central Asia and Western China, and Pakistan”s other neighbouring countries.

Planners also hope that the area between Karachi and Gwadar will see a large number of industrial and other economic enterprises to serve not only the less developed province of Balochistan, and Pakistan itself, but the entire region around the new port, including neighbouring Afghanistan and Iran.

Pakistan government has decided to attract substantial local and foreign investment for which it plans to shortly announce a 15-year tax holiday in the proposed Export Processing Zone (EPZ) being planned near Gwadar port, Balochistan. A committee comprising the chief secretary Balochistan and two other federal Secretaries were currently working out a special package in order to help establish a trade and energy corridor from Gwadar to Central Asia and Gwadar to China. The government is considering providing free of cost land to those investors who will be investing $200 million and more to set up industrial units at the Gwadar Export Processing Zone (G-EPZ). The proposed incentive package that is being finalised for the Gwadar EPZ also includes this incentive for the investors who will be investing in the G-EPZ when it will be operational. Number of foreign investors has shown interest to establish mega refineries, building storage capacity and undertaking other business in Gwadar to help expedite the process of industrialistion in Balochistan province. Due to all these benefits and steps taken by government of Pakistan Gwadar will become a paradise for investors.

Source: The Nation