• Monday, February 26, 2018

Chabahar vs Gwadar Port

Discussion in 'Central & South Asia' started by New, Aug 12, 2014.

  1. New

    New PDF THINK TANK: ANALYST

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    The Great Game redux: China and India maneuver over Arabian Sea ports, Gwadar (top) and Chabahar (below)

    Both Pakistan and Iran being close neighbours have cordial and fraternal relations with each other. Both have evolved master plan to create economic, trade and transport ties with Central Asian countries, Afghanistan and beyond. The two countries have offered all sorts of facilities and generous incentives to shipping companies and other countries of the world to do business in their respective ports. For Central Asian countries, both the ports are most likely to become major link to global market.
    Construction of Gwadar Port was necessitated due to the fact that Karachi Port was already heavily-loaded with serious congestion from commercial, fishing, civil and military shipping. It may be recalled that in 1971, the Indian Navy targeted the Karachi Port leading to a massive harm to the economy of Pakistan. It was felt that any future blockade by India would further devastate Karachi Port and economy of the country. In order to relieve too much reliance on the Karachi Port, another port by the name Port Qasim was established in Karachi. Now, with the establishment of Gwadar Port in the province of Balochistan the reliance on Karachi Port will be further reduced.
    Port of Bandar Abbas in Iran is of strategic importance as it is situated on the Strait of Hurmuz leading to the Persian Gulf. This is problematic for Iran because of the high traffic and probably the penetrations of US Navy. To be more secure, the Iranians established Port of Chabahar for more congenial trade with other countries. They foresee that Chabahar Port as an instrument in their policy to escape international isolation. Iranian officials state that they desire to have Bandar Abbas Port remain as the port for Russian and European trade.
    Chabahar Port is situated on the Makran Coast of the Sistan and Balochistan of Iran and is officially declared as a free trade and industrial zone by the Iranian government. The port has been developed by India. It is the closest and best access point to the Indian Ocean. Its location is at the most secure and closet route to Central Asia and Afghanistan market. It has proximity to the largest energy resources of the world. Its economic sectors are fishery industries and commercial. The port is well-connected to other cities of the country by road and airlines. A strategic partnership will be established between Iran, India and Russia to establish a multi-model transport link connecting Mumbai with Saint Petersburg, providing Europe and the former Soviet Union Republics of Central Asia access to Asia and vice versa. Iran and Afghanistan have signed an agreement to give Indian goods leading for Central Asia and Afghanistan, preferential treatment and tariff reduction at Chabahar Port.
    The berths in Port of Chabahar include general cargo and bulk. Berth capacities range from 2,000 to 2,500 tonnes. Chabahar Shahid Beheshti Jetty has a length of 600 metres and can berth four vessels of up to 25,000 gross tonnage and 11-metre draught simultaneously. The other Shahid Kalantary Jetty has a length of 1100 metres, four metallic ready-made jetties. Adequate reserves of water and electricity efficient telecommunication network, warehouses and cold storage facilities are already available.
    Gwadar Port is located on the Gulf of Oman, close to the entrance of Persian Gulf. It is a deep warm water sea port, about 460-kilometer west of Karachi and approximately 75-kilometer east of Pakistan border with Iran. The port is close to the important Strait of Hormuz, through which more than 13 million bpd of oil passes. It is strategically between the oil-rich Middle East, the economically shortest route to the oil-rich Central Asian States through land-locked Afghanistan, and heavily populated South Asia. It is at the mouth of the Gulf through which 40 per cent of world's daily oil passes. Much of it has been financed by China. At present, the project is estimated to be $1 billion or even more. In 2007, the government of Pakistan handed over the operations of port to PSA, Singapore for 25 years and gave the status of a Tax-Free Port for 40 years. The port became somewhat a little bit functional in 2008 with first ship to dock bringing 52,000 tonnes of wheat from Canada.
    Gwadar Port has the capacity to handle large crude containers of up to 500,000 tonnes deadweight. It will have three containers terminal, a bulk- cargo terminal, a grain terminal and an oil terminal. It would promote economic development in the country and would provide vast employment opportunities to the Baloch people. The establishment of Free-Trade and Economic Zones and Export Processing Zone would attract foreign investment, and employment opportunities to the local people. The port will not open large avenues for the people of Mekran engaged in fishing and agriculture but will also facilitate easier transportation of date export to foreign markets. Gwadar would generate massive revenues for the Balochistan province. It would become a trade hub, once road and rail links are linked to the rest of Pakistan, Afghanistan and Central Asia. Pakistan has future plan for development of Gwadar to cater foreign trade of the Central Asian Republics and the Xingjian and the Sichuan provinces and the Tibetan region of China. It also proposes the construction of a rail and road network between Gwadar and Xingjian.
    Gwadar Port will have to face stiff competition from Chabahar. It is still not operating vigorously as Chabahar. The supporting structures at Gwadar Port are still not existent. Two years have passed away and there is no visible economic activity in this port. Several projects such as 950-km railway and 900-km motorway to link with railway and highway of the country have so far remained only in files. The 200-km branch road which would link coastal road to the Indus Highway at Ratto-Dero is still not developed. There are no internal roads and services and water, gas, power and communication services for the new township and industrial zone. There are no warehouses and cold storages there.
    India's financing and engineering assistance is not only limited to Chabahar Port but it is also actively developing a highway that leads from the Chabahar Port to Afghanistan. Chabahar Port is well-suited for linking southern ports of Afghanistan and a few Central Asian States. For Pakistan in the present condition the Southern Afghanistan is not ready to be a reliable transport corridor for Pakistan access to Central Asian states. Gwadar Port can be operated efficiently if there is no kidnapping and deadly attacks on foreigners and the government of Pakistan makes favorable concessions to Baloch people living in Gwadar and its surrounding areas.
    As long as peace and tranquility prevails in the region and there is no cutthroat competition between Chabahar and Gwadar ports and India does not unduly interfere in the affairs of Balochistan by supporting the insurgency there the Gwadar Port trading activities will be accelerated. Further, the current confirmed involvement of terrorism activities by India in Swat and tribal areas and rising Indian economic and political influence in Afghanistan would exacerbate the tension in the region and would harm the normal activities of the Gwadar Port.
    With the full operation of Gwadar Port, there are bright prospects for Balochistan for attaining on economic par with other provinces of Pakistan. The real value of Gwadar Port could be witnessed when Chinese trade grows with Gulf States, Middle East and European countries. Any transport or defense problems in the Strait of Malacca, the Strait of Hurmuz and the Suez will promote the significance of Central Asia as a strategic trade corridor. China, Iran and India are desperate in having closer ties with Afghanistan and Central Asian states. Iran's main considerations are not only boosting trade but securing its borders and avoiding American Navy in this region. Pakistan wants peace in its region and it does not want that militants spoil further its economy and it hopes for the best relations with Afghanistan and Central Asian states. According to the Iranian officials, both Chabahar and Gwadar can equally benefit from Central Asian business.

    Conclusion

    The countries of Central Asia will likely benefit from both Chabahar and Gwadar. Diversifying its import and export routes is a logical economic and political step. Although one should not exaggerate the economic benefits to be reaped. As for the competition between the two ports, it will not be a “winner take all” outcome but rather one port earning the greater share of trade. And the “winner” in this respect will likely be Chabahar, at least in the short term. Iran is more stable than Pakistan, it has better relations with Afghanistan and the Central Asian states, and unlike the Gwadar route its proposed route goes through relatively stable parts of Afghanistan. As long as Iran avoids outright conflict with the United States or any sort of domestic turmoil it should come out of this competition with an advantage.

    For further readings;
    Central Asia’s Seaport: Gwadar or Chabahar? — Registan.net
    Chabahar Versus Gwadar | The Pakistani Spectator
    Their Gwadar, Our Chabahar
    Chahbahar and Gwadar
     
  2. New

    New PDF THINK TANK: ANALYST

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    Chabahar to central Asia highway
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    • Afghanistan is a land-locked country. Most of its international trade is done through Pakistani sea-ports.
    • Therefore, India wished to connect to Afghanistan via an alternative route (through Iran).
    • So, In 2003 a trilateral agreement was signed among India, Iran and Afghanistan.
    • Under this agreement
      • Iran was to build a highway from Chabahar (a Port City of Iran) upto Afghanistan border.
      • India was to build a road connecting Delaram (border city of Afghanistan) to Zaranj (Capital of Nimruz province of Afghanistan)
    • Delaram–Zaranj Highway, also known as Route 606.
    • Length about 200km
    • It connects Delaram (border city of Afghanistan) to Zaranj (Capital of Nimruz province of Afghanistan).
    • India totally financed this project. (about 600 crore rupees).
    • Border Roads Organization (BRO) of India, has constructed this highway.
    • Construction started in 2005, and in 2009 the road was opened for public use.
    • All these years, India was requesting Iran to allow them to do some port Development on this port. And now the permission is issued.
     
  3. Echo_419

    Echo_419 ELITE MEMBER

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    India & China should work together for better connectivity with Central Asia
     
  4. Sage

    Sage SENIOR MEMBER

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    Excellent share ....good read !
     
  5. SrNair

    SrNair BANNED

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    Chabhar would be the winner in future.Because it is in Iran and so there is no security problems and other infras is already in there.
    Zaranj -Delaram road is already completed.
     
  6. New

    New PDF THINK TANK: ANALYST

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    Hehe, your welcome.:tup:
    Apart from the result of the rivalry between two ports, I must say it is the exact right moment for bright and sane individuals to start investing in those regions, and if you are in doubt what to start from, my advise would be a transportation company. even a small one.
     
  7. SrNair

    SrNair BANNED

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    Good for Iranian and Pakistan businessmens.Afghans also.
     
  8. tore

    tore FULL MEMBER

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    To Indian Freinds: Bhai baat je he , we have alwys considered Afghan people as our brother & sisters. Therefore during the Afghan war we gave asylum to 4-6 million Afghans. In recent years we are witnessing alot of anti Pakistan remarks comming from afghans. I dont know why. These people have always fighted with other afghan tribes, and now the put the blame on Pakistan, thats unfair. Afghan people have made anti Pakistan websites and Indo-Afghan web sites on Internet etc. In my oppinion Pakistan should ask our guests Afghan people livving inside Pakistan 4 +million to go back to Afghanistan (Or go to India, if they love India so much, India kider 4 million Afghano ke asylum deta he) Close our border with Afghanistan, Afghans must aquire visa before they come to Pakistan.

    2.
    Yaar , Afghano ne Gawadar use karna he to welcome he nahi karna to phir bhi welcome he na use karee. China is equel to 60-70 countries. Aqar China hi use kar le to kafi he Pakistan ke lie. It will generate alot of revenue for Pakistan. And solve Chinas problem in south east Asia for transportation of oil, gas & goods.
     
    Last edited: Aug 12, 2014
  9. SrNair

    SrNair BANNED

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    For this is port is for business.Other emotions is not a subject here.Your problems with Afghans is not a subject to us .
    So stay on topic.Dont derail this thread.
     
  10. IND151

    IND151 BANNED

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    The Great Game redux: China and India maneuver over Arabian Sea ports, Gwadar (top) and Chabahar (below)

    Both Pakistan and Iran being close neighbours have cordial and fraternal relations with each other. Both have evolved master plan to create economic, trade and transport ties with Central Asian countries, Afghanistan and beyond. The two countries have offered all sorts of facilities and generous incentives to shipping companies and other countries of the world to do business in their respective ports. For Central Asian countries, both the ports are most likely to become major link to global market.
    Construction of Gwadar Port was necessitated due to the fact that Karachi Port was already heavily-loaded with serious congestion from commercial, fishing, civil and military shipping. It may be recalled that in 1971, the Indian Navy targeted the Karachi Port leading to a massive harm to the economy of Pakistan. It was felt that any future blockade by India would further devastate Karachi Port and economy of the country. In order to relieve too much reliance on the Karachi Port, another port by the name Port Qasim was established in Karachi. Now, with the establishment of Gwadar Port in the province of Balochistan the reliance on Karachi Port will be further reduced.
    Port of Bandar Abbas in Iran is of strategic importance as it is situated on the Strait of Hurmuz leading to the Persian Gulf. This is problematic for Iran because of the high traffic and probably the penetrations of US Navy. To be more secure, the Iranians established Port of Chabahar for more congenial trade with other countries. They foresee that Chabahar Port as an instrument in their policy to escape international isolation. Iranian officials state that they desire to have Bandar Abbas Port remain as the port for Russian and European trade.
    Chabahar Port is situated on the Makran Coast of the Sistan and Balochistan of Iran and is officially declared as a free trade and industrial zone by the Iranian government. The port has been developed by India. It is the closest and best access point to the Indian Ocean. Its location is at the most secure and closet route to Central Asia and Afghanistan market. It has proximity to the largest energy resources of the world. Its economic sectors are fishery industries and commercial. The port is well-connected to other cities of the country by road and airlines. A strategic partnership will be established between Iran, India and Russia to establish a multi-model transport link connecting Mumbai with Saint Petersburg, providing Europe and the former Soviet Union Republics of Central Asia access to Asia and vice versa. Iran and Afghanistan have signed an agreement to give Indian goods leading for Central Asia and Afghanistan, preferential treatment and tariff reduction at Chabahar Port.
    The berths in Port of Chabahar include general cargo and bulk. Berth capacities range from 2,000 to 2,500 tonnes. Chabahar Shahid Beheshti Jetty has a length of 600 metres and can berth four vessels of up to 25,000 gross tonnage and 11-metre draught simultaneously. The other Shahid Kalantary Jetty has a length of 1100 metres, four metallic ready-made jetties. Adequate reserves of water and electricity efficient telecommunication network, warehouses and cold storage facilities are already available.
    Gwadar Port is located on the Gulf of Oman, close to the entrance of Persian Gulf. It is a deep warm water sea port, about 460-kilometer west of Karachi and approximately 75-kilometer east of Pakistan border with Iran. The port is close to the important Strait of Hormuz, through which more than 13 million bpd of oil passes. It is strategically between the oil-rich Middle East, the economically shortest route to the oil-rich Central Asian States through land-locked Afghanistan, and heavily populated South Asia. It is at the mouth of the Gulf through which 40 per cent of world's daily oil passes. Much of it has been financed by China. At present, the project is estimated to be $1 billion or even more. In 2007, the government of Pakistan handed over the operations of port to PSA, Singapore for 25 years and gave the status of a Tax-Free Port for 40 years. The port became somewhat a little bit functional in 2008 with first ship to dock bringing 52,000 tonnes of wheat from Canada.
    Gwadar Port has the capacity to handle large crude containers of up to 500,000 tonnes deadweight. It will have three containers terminal, a bulk- cargo terminal, a grain terminal and an oil terminal. It would promote economic development in the country and would provide vast employment opportunities to the Baloch people. The establishment of Free-Trade and Economic Zones and Export Processing Zone would attract foreign investment, and employment opportunities to the local people. The port will not open large avenues for the people of Mekran engaged in fishing and agriculture but will also facilitate easier transportation of date export to foreign markets. Gwadar would generate massive revenues for the Balochistan province. It would become a trade hub, once road and rail links are linked to the rest of Pakistan, Afghanistan and Central Asia. Pakistan has future plan for development of Gwadar to cater foreign trade of the Central Asian Republics and the Xingjian and the Sichuan provinces and the Tibetan region of China. It also proposes the construction of a rail and road network between Gwadar and Xingjian.
    Gwadar Port will have to face stiff competition from Chabahar. It is still not operating vigorously as Chabahar. The supporting structures at Gwadar Port are still not existent. Two years have passed away and there is no visible economic activity in this port. Several projects such as 950-km railway and 900-km motorway to link with railway and highway of the country have so far remained only in files. The 200-km branch road which would link coastal road to the Indus Highway at Ratto-Dero is still not developed. There are no internal roads and services and water, gas, power and communication services for the new township and industrial zone. There are no warehouses and cold storages there.
    India's financing and engineering assistance is not only limited to Chabahar Port but it is also actively developing a highway that leads from the Chabahar Port to Afghanistan. Chabahar Port is well-suited for linking southern ports of Afghanistan and a few Central Asian States. For Pakistan in the present condition the Southern Afghanistan is not ready to be a reliable transport corridor for Pakistan access to Central Asian states. Gwadar Port can be operated efficiently if there is no kidnapping and deadly attacks on foreigners and the government of Pakistan makes favorable concessions to Baloch people living in Gwadar and its surrounding areas.
    As long as peace and tranquility prevails in the region and there is no cutthroat competition between Chabahar and Gwadar ports and India does not unduly interfere in the affairs of Balochistan by supporting the insurgency there the Gwadar Port trading activities will be accelerated. Further, the current confirmed involvement of terrorism activities by India in Swat and tribal areas and rising Indian economic and political influence in Afghanistan would exacerbate the tension in the region and would harm the normal activities of the Gwadar Port.
    With the full operation of Gwadar Port, there are bright prospects for Balochistan for attaining on economic par with other provinces of Pakistan. The real value of Gwadar Port could be witnessed when Chinese trade grows with Gulf States, Middle East and European countries. Any transport or defense problems in the Strait of Malacca, the Strait of Hurmuz and the Suez will promote the significance of Central Asia as a strategic trade corridor. China, Iran and India are desperate in having closer ties with Afghanistan and Central Asian states. Iran's main considerations are not only boosting trade but securing its borders and avoiding American Navy in this region. Pakistan wants peace in its region and it does not want that militants spoil further its economy and it hopes for the best relations with Afghanistan and Central Asian states. According to the Iranian officials, both Chabahar and Gwadar can equally benefit from Central Asian business.

    Conclusion

    The countries of Central Asia will likely benefit from both Chabahar and Gwadar. Diversifying its import and export routes is a logical economic and political step. Although one should not exaggerate the economic benefits to be reaped. As for the competition between the two ports, it will not be a “winner take all” outcome but rather one port earning the greater share of trade. And the “winner” in this respect will likely be Chabahar, at least in the short term. Iran is more stable than Pakistan, it has better relations with Afghanistan and the Central Asian states, and unlike the Gwadar route its proposed route goes through relatively stable parts of Afghanistan. As long as Iran avoids outright conflict with the United States or any sort of domestic turmoil it should come out of this competition with an advantage.

    For further readings;
    Central Asia’s Seaport: Gwadar or Chabahar? — Registan.net
    Chabahar Versus Gwadar | The Pakistani Spectator
    Their Gwadar, Our Chabahar
    Chahbahar and Gwadar
     
    Last edited: Aug 12, 2014
  11. Contrarian

    Contrarian ELITE MEMBER

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    That region needed more ports anyway. Both are good for development.
    For India, they serve an additional benefit of providing port access bypassing Pakistan.
     
  12. greatone

    greatone FULL MEMBER

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    Gwadar can never be a commercial port for the China because it is too far from Chinese heartland for it to be cost effective.
    However, it would serve as an excellent military port for PLAN owing to its location near the Strait of Hormuz.

    With US not as dependant on oil from ME as before and ever increasing Chinese oil imports, one would think China would assume more military responsibility in ensuring passage of oil from ME in future.
    I expect to see Chinese military footprint increase in Gwadar and perhaps even Chabahar owing to good relations b/w China and Iran
     
  13. New

    New PDF THINK TANK: ANALYST

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    Hehe, dude, thanks for highlightings.
     
  14. SrNair

    SrNair BANNED

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    Once it is established full fledgly.Chabhar would become the lifeline Afghanistan trade deals.We will get central asian markets.Afghanistan Iran will get immense development.
     
  15. OrionHunter

    OrionHunter ELITE MEMBER

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    I stopped reading after this crap! It's fashionable for most in Pakistan to blame India for all its ills. A convenient excuse and a smokescreen to hide the incompetence and inefficiency of the Establishment as can be gauged from the fact that supporting infrastructure at Gwadar Port is still not existent. As per the above article, two years have passed and there is no visible economic activity in this port.

    Several projects such as 950-km railway and 900-km motorway to link with railway and highway of the country have so far remained only in files. The 200-km branch road which would link coastal road to the Indus Highway at Ratto-Dero is still not developed. There are no internal roads and services and water, gas, power and communication services for the new township and industrial zone. There are no warehouses and cold storages there.


    But then it's India, the convenient whipping boy of Pakistan, which is to blame for this and the mess that Pakistan is in. This is getting to be silly.