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Gwadar MegaPort City-The Next Hong Kong?

Discussion in 'Pakistan Economy' started by A1Kaid, Apr 7, 2009.

  1. A1Kaid

    A1Kaid PDF THINK TANK: ANALYST

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    Yes the article is a few years old but a great read into the future.



    Gwadar Port Pakistan


    Gwadar MegaPort City -The Next Hong Kong?


    3111d2387e0a306f547616e253fd4a3d.jpeg
    (Hong Kong picture above)


    (Hong Kong picture above)

    Friday, 30 November 2007 07:19

    It’s amazing that tomorrow’s small fishing village ‘Gwadar’ is fast emerging as a Deep Sea Port today. This is important to note that the Government of Pakistan, keeping in view its utmost significance in the area, has declared ‘Gwadar’ as a Duty Free Port and a Free Economic Zone. This has not only enhanced its commercial worth manifold but has also accelerated the pace of development to an incredible extent.

    In fact, Gwadar enjoys the status of a third Deep Sea Port of Pakistan which has a special significance with reference to trade links with Central Asian Countries, Persian Gulf, East Africa, United Arab Emirates and North Western India.

    Gwadar by virtue of its finest location, development projects, recreation programmes and Government’s special attention, will soon turn into a city which will be comparable with cities like Singapore, Hong Kong and Dubai.

    In view of the promising future of Gwadar, people from Pakistan and abroad who believe in safe and sound investment, are taking keen interest in Gwadar.

    Historical Info

    Located at the entrance of the Persian Gulf and about 460 kms from Karachi, Gwadar has had immense Geostrategic significance on many accounts. The continued unstable regional environment in the Persian 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 Persian 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. Technical and financial feasibilities therefore were under taken resulting in decisions for the development of Gwadar Port by the Govt. of Pakistan. The Project started on 22 March 2002, is on fast track and will Inshaullah complete in schedule time i.e March 2005. In fact it would surprise many that with initiative and calculated risk, we have received merchant ships since Jan 2003 and have been able to off load hundreds of tones of cargo imported for the Project, thus saving precious time and money which otherwise is required for transportation of the same cargo by road from Karachi/PQA to Gwadar.

    Gawadar is the District Headquarter of Makran Division in Balochistan, the largest province of Islamic Republic of Pakistan. It is situated on the coastal line of Makran. Along the coastal line ,there are four Tehsils including Gawadar, Jiwani, Kulanch and Ormara. Jiwani is the only one on the western part of Gawadar, joining Iranian border on Pakistani side. Kulanch and Ormara, on its eastern side are connecting District Lasbela and to Karachi finally. The distance between Gawadar and Karachi in this way, is around 715 km.

    Geo-Political Importance Of Gawadar


    Dubai is the hub of business not only for Gulf but also for rest of the world including Europe, United States, Africa, China and Central Asian States, simultaneously. The gulf region is facing many political conflicts at the moment and huge disturbances in the current administrative structure are expected in the coming years. In such a scenario, a substitute of Dubai is essential to be located before the crisis hits the finances of millions. The substitute shall be a nearest point probably, to ensure continuous supply line of oil from Gulf to the outer world. Fortunately, Gawadar proves to be the nearest and infact more cost-effective substitute of Dubai, from many aspects.

    China is emerging as a super economic power of the world in the recent years. Despite occupying a huge area of world's land, it doesn't have any port of hot waters, which can be used the whole year. The distance of Chinese industrial approach to the Shinghai port is approximately 16000 km and the sea travel of 2-3 months is additional. This costs them a lot in the form of taxes and duties as well. As compared to this, Gawadar port is only on a distance of 2500 km from China and the port is working for the whole year because of the hot waters here. Therefore, the interest of China in the development of Gawadar port is infact in the interest of Chinese economy.

    The central Asian states, after the independence from USSR, are trying to develop their economies. These states are land locked and Karachi was expected to provide them the services through Afghanistan. For the purpose, a highway from Peshawar to Karachi was constructed but due to Afghan crisis, this line couldn't be established. The Afghan situation is till not clear, so, Gawadar being near to Iranian border will provide port facilities to Central Asia as well.

    Geo-Economic Importance Of Gawadar

    With a population of 160000, the Gawadar Town on Makran Coast is now set to become a hub of shipping, commercial and industrial activities. Pakistan and China had signed a comprehensive agreement on March 16, 2002 at Beijing undertaking the task of construction of Gawadar deep seaport of universal standards. The work on the first phase of this mega project, which is being constructed by Chinese Harbor Engineering Company, is now at full swing. The project is bound to be a vital landmark in the economic development of the region. The port comes as a much-needed national requirement in the wake of the rise in cargo traffic at Keamari and Bin Qasim, 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.

    Gwadar is now destined to be the most important upcoming coastal town located on the inter junction of the three most strategically and economically important regions of the world that are oil rich Middle East, South Asia where one- fifth of world population lives and the Central Asian Republics endowed with mineral wealth and an educated and highly skilled and disciplined workforce.

    Source: Gwadar port pakistan | Pakistan Daily
     
    Last edited: Apr 7, 2009
  2. A1Kaid

    A1Kaid PDF THINK TANK: ANALYST

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    Chinese $13 billion Investment in Gwadar Megaport City



    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.

    Courtesy Daily Times

    Source: Chinese mulling $13b investment in Gwadar - Pakistan Real Estate News, Articles, Properties in Karachi, Lahore, Islamabad, Gwadar, Rawalpindi, Multan, Faisalabad and Dubai
     
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  3. Omar1984

    Omar1984 ELITE MEMBER

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    Our Chinese friends are working hard in helping us build Gwadar, but I dont think it'll be like Hong Kong well atleast not any time soon. Theres a lot of work to be done and also the locals need to be trained and educated. The locals there probably never heard of Hong Kong in their lives :lol:
     
  4. A1Kaid

    A1Kaid PDF THINK TANK: ANALYST

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    Yes there are a lot of fundamental changes and progress that must be made, until Gwadar becomes a World Trade Megaport City like Hong Kong, Dubai, or Hong Kong.

    However, there are many similarities I can make between Gwadar Port and Hong Kong.

    1) Both Gwadar and Hong Kong City began as small fishing villages on a coastline.

    2) Both are located at a strategic Geo-Political and Geo-Economic place.

    3) Development and heavy investment in infrastructure like highways, Naval/Terminal deep sea ports, roads, commercial zones, and harbor.

    The list goes on...

    What the Pakistani Nation must understand this once small fishing village holds the Nation's Potential to wealth and success. We should make it the utmost priority to develop Gwadar, as it will serve the Nation's dream and wishes of prosperity.

    What we have in our possession is a Pearl, and this Pearl has the luster far times greater than others.
     
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  5. maverick1977

    maverick1977 FULL MEMBER

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    two very important projects need to launched to make Gwadar a true trading port for china and central asia.

    Dual haul rail line from gwadar to Karachi or from Gwadar to jacobabad need to made... already work in under progress to double train line from khanewal to raiwind through khanewal and sahiwal/okara. another project to double the line from lahore to jehlum/pindi to taxila and havelia need to be completed.

    Then the new construction of railway line from hawelian to gilgit khunjrab and kashgar need to be completed. this new 780km line to kashgar can revolutionize the trade from china and central asia. all we have to do is to work on these two critical projects. Gawadar karachi line, Hawelian kashgar line. Feasibility of havelian kasgar line was completed in 2008 April and estimated cost is 14 billions $.

    There is a notion amongst pakistanis that US came to afghanistan to make sure that central asian will trade through afghanistan to pakistan undermining china. but pakistan wants to work with china thats why WoT.
     
  6. maverick1977

    maverick1977 FULL MEMBER

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    another point, if china is heavilty investing in Gawadar sea port i am sure they have an idea to ship this oil from pakistan to china. preferrably via a rail line and oil pipeline..
     
  7. Omar1984

    Omar1984 ELITE MEMBER

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    Why cant Pakistan trade with Central Asian countries as well with China at the same time, and why not bring Central Asia and China together so they can trade with each other as well through Gwadar Port.

    Pakistan is in a very important place in the world. Pakistan is a gateway to the Middle East, Central Asia, China, and India so why not bring all these regions together so they can trade with one another through Pakistan? That way Pakistan also benefits. China will be given first priority because they are working as hard as some of our fellow Pakistanis in developing Gwadar and also they have invested the most in Gwadar so we Pakistanis must show them our appreciation :pakistan::china:
     
    Last edited: Apr 8, 2009