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Gwadar Seaport Opens for Afghanistan Transit Trade | Afghani Goods Transport | Boost Afghan Economy

AsianLion

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First time shortest route Gwadar Deep Sea Port Opens for Afghanistan Transit Trade | Afghani Goods & Services Sea Transport Route | Big Boost to Afghanistan Economy

Pakistan begins transit trade to Afghanistan via Gwadar port for First Time | Afghanistan Economy uplift boost

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Pakistan’s commerce ministry operationalised the Gwadar Port for Afghan transit trade on Friday, marking a first in sea trade between the two countries.

The trade business has commenced under the Afghanistan-Pakistan Transit Trade Agreement-2010 (APTTA), authorities at the ministry informed.

In a series of tweets, Advisor to Prime Minister on Commerce and Investment Abdul Razzak Dawood shared that a ship carrying 16,000 metric tonnes of urea and fertiliser for Afghanistan had arrived in Gwadar, beginning a new chapter of trade via sea route from the Gwadar Port to Afghanistan.


The adviser further added that it was for the first time that the fertiliser will be locally packed. He claimed that directives had also been issued to offer jobs and livelihoods to local labourers only.


The labourers are were said to engage in the packing of fertilisers, loading and offloading of the items in trucks.

Apart from fertilisers, Afghanistan will be granted permission for the transit trade of sugar and wheat from Gwadar, while trucks carrying fully sealed consignments will only be allowed to go to the neighboring country.


While this maybe a first in sea trade for the two countries, both Pakistan and Afghanistan have been engaged in continued trade transit through land routes as global trade activities witnessed a lull amid the pandemic.

Besides the movement of cargo, the two countries have also seen active repatriation of their citizens from the shared borders at Chaman and Torkham.

For the first time, Pakistan has begun transit trade to Afghanistan via sea route using the Gwadar Port, the commerce ministry informed on Friday.


“The cargo ship SIBULK TRADITION has berthed at Gwadar, carrying 16000 tonnes of urea for Transit to Afghanistan. This is a first and marks the beginning of a new era in Pakistan's trade by sea," informed Advisor to Prime Minister on Commerce and Investment Abdul Razak Dawood in a series of tweets.

The SAPM added that for the first time, fertilizer bagging will be done locally instead of foreign ports. “Urea will be bagged and shipped on trucks to Afghanistan at Gwadar, which will generate employment for the locals."

“Instructions have already been passed to allocate all labour jobs to local population," he added.

Analysis

Amidst the daily grind of grim news relating to Covid-19 infections and deaths has come one welcome development, showing that life goes on.

The news relates to the federal government’s decision to open the Gwadar Port for Afghan Transit Trade. This is a very positive development for several reasons. To begin with, it will enhance capacity utilization of the port. However, the accrual of full benefits of this decision will need a number of allied measures to develop Gwadar’s comparative advantage vis-a-vis Karachi.

There are two routes for Afghan transit goods: Karachi-Quetta-Chaman-Kandahar and Karachi-Peshawar-Torkham-Jalalabad. Relatively, Gwadar can be more viable for the former destination.

The distance from Karachi to Quetta and from Gwadar to Quetta is 690 kms and 915 kms, respectively. In the event, transporters would be reluctant to use a route that is longer by 225 km. Additionally, the Gwadar-Quetta route passes through somewhat desolate terrain and offers few facilities for rest and meals compared to the Karachi-Quetta route. Security will also be an overriding concern.

Gwadar can overcome the above relative handicaps and enhance its economic viability significantly if a direct route is created between Gwadar and the city of Sangin in the southern Helmand province of Afghanistan. The 1,800 kms route is proposed to run south to north from Gwadar to Nokundi in Chagai district and onward to Sangin. The route will pass through Turbat and Panjgur and curve around the Hamun-e-Mashkel seasonal lake.

Sangin, across the Pakistan-Afghanistan border, is a junction town on the highway that connects to Kandahar 150 kms to the east, to Herat 500 kms north-west via Farah, and to Mazar-e-Sharif another 750 kms to the north. The highway network is recently built and reported to be of excellent quality. The Gwadar-Sangin section will open a third route for Afghan transit trade and lead to the development of Sangin as a major commercial centre to the benefit of southern and south-western Afghanistan.

The benefits to Balochistan and Pakistan will also be manifold. Expanded economic activity in southern Afghanistan will benefit the population of north-western Balochistan via greater trade opportunities and also generate opportunities for the development of Turbat and Panjgur. Gwadar will offer a shorter and faster route from the Saindak and Rikodik copper mines; thereby, further enhancing capacity utilization of Gwadar port.

A major benefit will be to curb the smuggling that Afghan transit trade has spawned, to the immense detriment of Pakistan’s manufacturing sector. Either some of the goods are off-loaded before reaching Afghanistan or they are recycled back to Pakistan. The Gwadar-Sangin route will be at a distance from the markets of Karachi, Lahore, Islamabad and Peshawar and the higher cost of transporting the off-loaded goods will rein in some of the economic incentive to smuggle.

The benefits of the Gwadar-Sangin route will be further enhanced if a railway line is laid along the track. Admittedly, railways are highly capital-cost intensive and the volume of traffic may not justify the monetary rates of return for the particular section. That, however, would be the conclusion of a narrow financial cost-benefit analysis. A broader socio-economic feasibility study is likely to produce a different result.

Relative to road transport, the railway will reduce the time cost of transporting goods to and from Gwadar and Sangin and from the Saindak and Rikodik mines. And railways use one-third less fuel per kilometer of tonnage compared to road transport; thereby, saving foreign exchange.

More specifically, a railway will be instrumental in containing smuggling. A truck can be half emptied while the driver and staff make a shortstop for tea or a meal. A train does not make unscheduled stops; and if it does, it can be monitored via satellite. Flow back of goods to markets in Pakistan will be uneconomical on account of the cost imposed by distance. The net beneficiaries will be Pakistan’s industries.

The security and political benefits need to be taken into account as well. The expansion of economic activity across western Balochistan and across southern Afghanistan will create jobs and raise incomes in both countries, reducing deprivation and disparities. After all, bombarding the area with jobs instead of with drones and gunfire is a more secure method of curbing insurgencies.

The writer was economic adviser to the chief minister Balochistan and also has experience of working in Afghanistan.
 
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Cliftonite

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It would have been fun if we had let the Afghanis beg and grovel for it

Compensation for all the destruction they've wrecked on our country.
 

AsianLion

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Amidst the daily grind of grim news relating to Covid-19 infections and deaths has come one welcome development, showing that life goes on.

The news relates to the federal government’s decision to open the Gwadar Port for Afghan Transit Trade. This is a very positive development for several reasons. To begin with, it will enhance capacity utilization of the port. However, the accrual of full benefits of this decision will need a number of allied measures to develop Gwadar’s comparative advantage vis-a-vis Karachi.

There are two routes for Afghan transit goods: Karachi-Quetta-Chaman-Kandahar and Karachi-Peshawar-Torkham-Jalalabad. Relatively, Gwadar can be more viable for the former destination.

The distance from Karachi to Quetta and from Gwadar to Quetta is 690 kms and 915 kms, respectively. In the event, transporters would be reluctant to use a route that is longer by 225 km. Additionally, the Gwadar-Quetta route passes through somewhat desolate terrain and offers few facilities for rest and meals compared to the Karachi-Quetta route. Security will also be an overriding concern.

Gwadar can overcome the above relative handicaps and enhance its economic viability significantly if a direct route is created between Gwadar and the city of Sangin in the southern Helmand province of Afghanistan. The 1,800 kms route is proposed to run south to north from Gwadar to Nokundi in Chagai district and onward to Sangin. The route will pass through Turbat and Panjgur and curve around the Hamun-e-Mashkel seasonal lake.

Sangin, across the Pakistan-Afghanistan border, is a junction town on the highway that connects to Kandahar 150 kms to the east, to Herat 500 kms north-west via Farah, and to Mazar-e-Sharif another 750 kms to the north. The highway network is recently built and reported to be of excellent quality. The Gwadar-Sangin section will open a third route for Afghan transit trade and lead to the development of Sangin as a major commercial centre to the benefit of southern and south-western Afghanistan.


The benefits to Balochistan and Pakistan will also be manifold. Expanded economic activity in southern Afghanistan will benefit the population of north-western Balochistan via greater trade opportunities and also generate opportunities for the development of Turbat and Panjgur. Gwadar will offer a shorter and faster route from the Saindak and Rikodik copper mines; thereby, further enhancing capacity utilization of Gwadar port.

A major benefit will be to curb the smuggling that Afghan transit trade has spawned, to the immense detriment of Pakistan’s manufacturing sector. Either some of the goods are off-loaded before reaching Afghanistan or they are recycled back to Pakistan. The Gwadar-Sangin route will be at a distance from the markets of Karachi, Lahore, Islamabad and Peshawar and the higher cost of transporting the off-loaded goods will rein in some of the economic incentive to smuggle.

The benefits of the Gwadar-Sangin route will be further enhanced if a railway line is laid along the track. Admittedly, railways are highly capital-cost intensive and the volume of traffic may not justify the monetary rates of return for the particular section. That, however, would be the conclusion of a narrow financial cost-benefit analysis. A broader socio-economic feasibility study is likely to produce a different result.

Relative to road transport, the railway will reduce the time cost of transporting goods to and from Gwadar and Sangin and from the Saindak and Rikodik mines. And railways use one-third less fuel per kilometer of tonnage compared to road transport; thereby, saving foreign exchange.

More specifically, a railway will be instrumental in containing smuggling. A truck can be half emptied while the driver and staff make a shortstop for tea or a meal. A train does not make unscheduled stops; and if it does, it can be monitored via satellite. Flow back of goods to markets in Pakistan will be uneconomical on account of the cost imposed by distance. The net beneficiaries will be Pakistan’s industries.

The security and political benefits need to be taken into account as well. The expansion of economic activity across western Balochistan and across southern Afghanistan will create jobs and raise incomes in both countries, reducing deprivation and disparities. After all, bombarding the area with jobs instead of with drones and gunfire is a more secure method of curbing insurgencies.

The writer was economic adviser to the chief minister Balochistan and also has experience of working in Afghanistan.


 

Pakistansdefender

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It would have been fun if we had let the Afghanis beg and grovel for it

Compensation for all the destruction they've wrecked on our country.
You don't. Yar. We wanted them to be dependant in us and not Iran.
Besides Pakistan exporters can buy their products such as anar carpets and repack them and sale it to the world.
Become economically tied to each other. Baqi cheezain bhi is se teak ho gaya gi.
Waisa na afghani change hoon ga na badla ga. We have to be on our guard.
It pains me to see Afghanistan needs 16000 Tons of urea and pakistan and its shitty industrialists like mansha engro etc are unable to even provide that.
Had we been mass producing it would be cheap for our farmers at the same time exportable to Afghanistan
 

Rusty

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I should be spending ALL of our diplomatic efforts to get all the central Asian "stans" on this.
This will give us influence, trade good will in the region.
We can offer what no other country can to them.
Direct access to warm water port.
 

AsianLion

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First Afghan-bound transit cargo arrives at Gwadar Port: report

598880_6761235_Capture_updates.jpg

Photo: Chinese Embassy/Twitter

Gwadar port, a key component of the China Pakistan Economic Corridor (CPEC), has started handling transit cargo to and from Afghanistan, according to Voice of America (VOA).

VOA, citing its sources, reported that the first ship carrying an Afghan shipment arrived at Gwadar on Tuesday. The shipment will be loaded on trucks and sent to Afghanistan through the Pak-Afghan border at Chaman.

Afghanistan has relied on Pakistani land routes as well as its ports for international trade after a bilateral agreement, known as the Afghan Transit Trade Agreement (ATTA), was signed with Islamabad.

The strategically-located Gwadar port became operational in 2016 after China's investment. The deep sea port offers a shorter overland link to Afghanistan, particularly to southern regions of the country, said VOA.

“CPEC and the Belt and Road Initiative are promoting regional economic ties,” said the Chinese Embassy in Islamabad while announcing the arrival of the first Afghan shipment at Gwadar.

Citing Pakistani officials, the publication further said that Pakistan handles approximately 47 per cent of total Afghan exports, while almost 60 per cent of Afghan transit trade goes through the Torkham border crossing.

Officials believe that Gwadar Port will also boost bilateral trade between the two neighbours.

https://www.thenews.com.pk/latest/598880-gwadar-port-receives-afghanistans-first-transit-cargo-voa
 

AsianLion

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First cargo ship carrying wheat, urea arrives at Gwadar port bound to Afghanistan
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Web Desk

11:47 AM | May 30, 2020

Special Assistant to the Prime Minister on Information and Broadcasting, Lieutenant General (retired) Asim Saleem Bajwa says first bulk cargo ship "MV Manet" carrying wheat and urea of Afghan Transit trade reached Gwadar this week.

In a tweet on Saturday, he said a dream come true for local economy as it will stimulate host of business activity.
 

Ashraf. M

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https://www.forbes.com/sites/hisutt...ompound-in-pakistan-may-indicate-naval-plans/




EDITORS' PICK|34,298 views|Jun 2, 2020,07:50am EDT
China’s New High-Security Compound In Pakistan May Indicate Naval Plans
H I SuttonContributor
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I cover the changing world of underwater warfare.

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Analysts have been watching for the first signs of a long-expected Chinese naval base at Gwadar in Pakistan. The base, to complement an elaborate one in Djibouti, would strengthen China’s foothold in the Indian Ocean. Recent satellite images appear to show that several new complexes have been built in the last few years. One of them, identified as being used by a Chinese company involved in port development, has unusually high security.

960x0.jpg

The confirmed Chinese high-security compound is at[+]
H I SUTTON (IMAGERY FROM SENTINEL HUB)

Located at the western end of Pakistan’s coast, Gwadar is expected to be a major port in China’s Belt and Road Initiative. This will allow Chinese goods to shortcut through Pakistan, instead of sailing all the way around South Asia. China was first reported to be planning a naval base there in January 2018. While the plan has never been confirmed officially, it would be a natural path.

The high-security compound has been identified as being used by the China Communications Construction Company (CCCC Ltd). This is a majority state-owned company that is heavily involved in many Chinese civil engineering projects. While some degree of security is normal in the region, the level of security seen here is extensive.


It has anti-vehicle berms, security fences and a high wall. Sentry posts and elevated guard towers cover the perimeter between the fence and the inner wall. This suggests armed guards with rifles.

960x0.jpg

The compound has several layers of defense,[+]
H I SUTTON

China has good reason to focus on security. The region, near the border with Iran and Afghanistan, is facing a long-standing insurgency. The Balochistan Liberation Army (BLA) seeks an independent state for the Baloch people. They carried out an attack on the Chinese Consulate in Karachi on November 23 2018, and on a hotel in Gwadar on May 11 2019. The latter attack targeted the Zaver Pearl-Continental 5-star Hotel, which is another centerpiece of Chinese investment in the town.

The high security compound is not alone. There are also two smaller sites built in the last year with rows of blue-roofed buildings. It has been suggested that these might be barracks for a Chinese Marine Corps garrison. China was reported to be deploying marines there back in March 2017. But the sites lack the level of security that would be expected. Whatever their exact purpose, their location and timing suggests that they are connected to the port expansion. The sites can be seen in these tweets by Twitter user @Civil_Int:

Until now the commercial port at Gwadar appears to have been under-used. But Gwadar’s luck as a port is already changing, and not because of the Chinese base. A deal was recently made to allow Afghanistan-bound trade to use the port. The first large merchant ship, the MV Manet, landed 17,600 tons of wheat there last week. But the economic benefit of the Chinese port and potential naval base could be much larger.


Whether the Chinese naval base materializes remains to be seen. But these new sites, including the heavily defended compound, may indicate that the next phase of port construction is imminent. And if the Chinese Navy does begin using the port it will strengthen their capabilities in the Indian Ocean.


Follow me on Twitter. Check out my website or some of my other work here.

H I Sutton
Defense analyst using OSINT (Open Source Intelligence) to get to the stories first. Author of several books on Submarines, Special Forces and Narco subs. I mostly write

…Read More




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AsianLion

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Gwadar port offers new opportunity for Afghan economy

Shortest Route for Afghans to move goods and services from Arabian Sea and Afghanistan

in Port News 28/01/2020

Gwadar port 02.jpg



The port of Gwadar now plays a new role, facilitating the transit trade for Afghanistan, by providing a most economical trade route for the war-torn nation.

Afghan traders have been using two Pakistani ports – Karachi and Port Qasim in Sindh – for the transit trade, but now the Gwadar port in neighbouring Balochistan provides an additional facility, which is closer to Afghanistan, and moreover, it gives quick clearance of their goods.

The first ship of transit trade for the land-locked country arrived at the Gwadar port recently. Experts in Pakistan believed that the start of Afghan transit trade through Gwadar is a right decision in making the port completely functional to boost regional connectivity and development.

Senator Mushahid Hussain Sayed, the chairman of the Pakistan-China Institute, told Xinhua that utilising Gwadar for Afghan transit trade is a positive and potentially historic development as it underlies the significant role that Gwadar will play for regional economic connectivity.

“This also opens up possibilities of Afghanistan joining CPEC [the China-Pakistan Economic Corridor], which would be welcomed both by Pakistan and China,” the senator said.

He said such trade opportunities augur well for Balochistan as well, since it means closer trade routes and commercial integration and cooperation among neighbours, adding that it would also be a plus for the Afghan peace process, which Pakistan and China strongly support.

The Pakistan Afghanistan Joint Chamber of Commerce & Industry (PAJCCI) said the opening of Gwadar port for the Afghan transit trade will create broader economic viability and choices for business communities.

PAJCCI Chairman Zubair Motiwala described the arrival of the first Afghan transit consignment at Gwadar port destined for Afghanistan as a “major breakthrough” and said the Chinese company at Gwadar has also announced incentives for the Afghan traders.

Motiwala told Xinhua that the success of handling bulk cargoes at Gwadar will pave the way for improving congestion problems in other ports like Karachi and will also nourish competitive landscape that would ensure provision of reasonably priced, high quality services to both domestic and international clients in the region.

The Pakistan Embassy in Kabul has said that the arrival of the Afghan transit goods at Gwadar marks the establishment of a new economical trade link between Pakistan and Afghanistan. Xinhua Source: The Express Tribune


https://www.hellenicshippingnews.com/gwadar-port-offers-new-opportunity-for-afghan-economy/
 

AsianLion

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Pakistan is loosing a lot after Army/ISI support to Taliban, all dollars going to Afghanistan, medicines, food, high inflation, expesive items, everything Pakistan is currently doing at the behest of its own country in downhill to help Afghan economy survive.
 

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