China and Pakistan rail link in the cards

[aimarraul]

China and Pakistan rail link in the cards

Economics & Trade

4 November 2009

The governments of China and Pakistan are discussing the construction of a rail and road link to transport oil from the Middle East to western China, the Wall Street Journal reported. Sohail Ahmad, director of Pakistan's Board of Investment, also confirmed that Pakistan is in talks with Sinopec, China's state oil company, about an investment into a major Pakistani coal reserve. Ahmad said that the two deals were part of a set of proposals to increase economic cooperation between the two countries. If constructed the road and rail link would run from Pakistan's Gwadar Port to Xinjiang, China's north-western province. Ahmad said that the plans were "at the very initial stage", but that Pakistan President Asif Ali Zardari would return to Beijing in December to continue discussions

 

[aimarraul]

Islamabad Sees Deals With China
NOVEMBER 4, 2009

http://online.wsj.com/article/SB1257279031...=googlenews_wsj

BEIJING -- China and Pakistan are discussing a variety of deals, including a possible investment by China Petrochemical Corp. in a major Pakistani coal reserve, a senior Pakistani government official said Tuesday.

The talks underscore how Pakistan is becoming another important investment destination for China in its hunger for oil and gas.

Sohail Ahmad, director of Pakistan's Board of Investment, said the two sides are also discussing an option to construct a rail and road link to help transport oil from the Middle East to western China.

Mr. Ahmad said the two potential deals are part of broader bilateral trade and economic cooperation proposals under discussion between the two countries. Other areas for potential cooperation include the textile, heavy industry and water sectors, he said.

China Petrochemical Corp., also known as Sinopec Group, has launched the first phase of a feasibility study into the estimated 185 billion metric ton Thar coal reserve, located in southern Pakistan.

It is studying gasification of the coal reserves among other possibilities such as power generation and mining, Mr. Ahmad said. Gasification is a process to convert coal into gas and then into liquefied natural gas, or LNG, for producing chemical products.

Pakistan has vast coal reserves, mostly in the Thar Desert, but has barely exploited them due to a lack of investment.

Last year, the Pakistan government said the reserves were the fifth-largest coal reserves in the world. Pakistan produces less than 0.5% of its total power generation capacity from coal, it said.

China, meanwhile, is seeking raw resources to fuel its rapid development and to funnel resources into its less wealthy western region.

Mr. Ahmad also said the two governments are in talks to build a road and rail link from Pakistan's Gwadar Port, at the mouth of the Persian Gulf, to Xinjiang in western China. The port was jointly constructed by the two countries.

If the link is built, it might among other things help extend to Xinjiang the oil pipeline from Iran to Pakistan or the LNG route from Qatar to Pakistan, he said.

Discussions between senior government leaders of Pakistan and China on the link, which could cost billions of dollars, remain "at the very initial stage," he said.

Pakistan President Asif Ali Zardari, who visited China in August to talk about these and other projects, will visit Beijing again in December for further talks, Mr. Ahmad said.

Asked if Pakistan is worried about Chinese state-owned enterprises taking control of some of its important companies, he said, "We don't have any concern, and we don't feel China is a threat."

The two countries' leaders have decided to set up a China-specific economic zone in Pakistan, he said, featuring a tax exemption as well as some legal protections.

 

[oct605032048]

A rail is definitely a good news.
besides, news said that by 2015, There will be 12000km railway(10% the length of china's railway by then) and 4 west-going international lines in Xinjiang including the sino-pakistan railway.

 

[xukxuk]

good news

 

[Omar1984]

Great news. This will be good for both Pakistan and China.