Gwadar - A Jewel in the Crown
- Thread starter Neo
- Start date
By Tanvir Ahmed Khan
This has not only enhanced its commercial worth manifold but has also accelerated the pace of development to an incredible extent. By virtue of its finest location, development projects, recreational programmes and Governmentââ¬â¢s special attention will soon turn it into a city that can be comparable with the cities like Singapore, Hong Kong and Dubai.
Gwadar, the western port city of Pakistan or the western port, that is worth mentioning has already got the attention of economic planners. Gwadar has an immense strategic lure. It lies near the Straits of Hormuz, gateway to the Gulf through which 40% of the worldââ¬â¢s oil passes. The port also has a great commercial attraction. It lies 1,250 miles from Xinjiang, a land-locked western province and latecomer to Chinaââ¬â¢s economic boom.
Pakistan identified Gwadar as a port site in 1964. However, it was only in 2001 that significant steps were taken toward making this proposal a reality, when China agreed to participate in the construction and development of the Deep Sea Port. The development of Gwadar could bring economic gains in a backward Balochistan Province. The infrastructural development of the province could make it an attractive investment opportunity. Meanwhile, land prices around Gwadar are said to be shooting up.
Keeping in view its utmost importance, the Government of Pakistan has declared Gwadar as Duty-Free Port and a Free Economic Zone. Economic benefits of Gwadar Port besides the geo-strategic importance are: Capitalizing the opportunities for trade with land-locked Central Asian States and Afghanistan, promotion of trade and transport with Gulf States, Trans-shipment essentially of containerized cargo, Unlocking the development potential of hinterland, Diversion of influx of human resources from upcountry to Gwadar, socio-economic upliftment of the Province of Balochistan, Establishment of shipping-related industries, Oil storage, refinery and petro-chemicals, Export processing industrial zones and many many more avenues.
Gwadar could emerge as a key shipping point, bringing Pakistan a much-needed income, and when combined with the surrounding areas could become a trade hub, once road and rail links connect it to the rest of Pakistan, Afghanistan and Central Asia.
A road from Gwadar to Saindak, is said to be the shortest route between Central Asia and the sea, is under construction. Gwadar would provide land-locked Afghanistan and the Central Asian Republics with access to the sea. Goods, oil and gas reserves from these countries could be shipped to global markets through Gwadar Port.
Pakistanââ¬â¢s business community seems to be in favour of Gwadar Port being designated a free trade zone and an export-processing zone. These all mega projects in Balochistan especially in Gwadar worth billions of US dollars carry national and international dimensions. The completion of these projects will not only usher an era of prosperity in Balochistan it will also change the outlook of the region.
Gwadar is Pakistanââ¬â¢s largest infrastructural project since independence. After the completion of the first phase of Gwadar Port billion of dollars have been invested in Gwadar and in the next one or two years the investment can cross the figure of trillions.
Now, China is a major investor in Gwadar, who has spent 248 million dollars in first phase of Gwadar Port. The total cost of project may go up to 2.2 billion dollars. China also plans to invest US$12 billion in multiple projects in Pakistan, including the countryââ¬â¢s largest oil refinery at Gwadar, the Oriental Morning Post reported.
The Gwadar oil refinery, which is being planned and designed, is expected to reach a daily oil output of 60,000 barrels when it goes into production, China is also planning to foster its participation in Pakistanââ¬â¢s long-term economic development by investing US$500 million in a joint venture investment company. Beijing is also investing billions after billions of dollars in western China a grand 5-year plan to develop it and Gwadar is a necessary part of that 5-year plan.
Pakistan invests more than an amount of 2 billion dollars to upgrade Gwadar and completion of related development programme in the last two years. Just Provincial Government of Balochistan is spending 4.5 billion rupees in Gwadar. Pakistan is an impoverished and underdeveloped country. Its economic record was not good in the past.
After coming into power President General Pervez Musharraf focused on economic sector. There is no doubt that in the last 3 years Pakistanââ¬â¢s economic growth is moving quickly towards record breaking achievement in the Pakistanââ¬â¢s history. Pakistan has attracted a sum of US$1.6 billion as foreign investment during the first 7 months of this fiscal year, starting last July. It is expected to attract US$1.4 billion more in the rest of the fiscal year.
Pakistan also hopes to achieve 18 billion dollar exports this year. These all signs are showing Government efforts to make Pakistan economically strong. And the Mega projects that Government has started in Balochistan including Gwadar Port, is going to generate an estimated US$ 60 billion every year over the span of time and provide firm basis for socio-economic uplift of the province.
As soon as the Gwadar Port goes operational, a rapid socio-economic uplift of Balochistan will be witnessed and would change the living standards of people dwelling in the backward areas of Balochistan.
The Government through Gwadar Port would end an era of depreciation for Baloch people and encourage them to work on the road of progress and prosperity to contribute in nation-building. Dreams of progress are materializing and clouds of desperation are shattering. Thus a better future of Balochistan is ahead in the form of fully developed Gwadar Port.●
http://www.pakistantimes.net/2006/05/08/oped2.htm
The Gwadar City/Town would have to be constructed very skillfully catering for the needs of growing influx of population and commercial and trade activities that follow suit. The land of Gawadar city is been carved out into various domains such as:
1: Commercial.2: Residential Industrial zone.
3: Export processing zone.
4: Oil and Gas Storage.
5: Railways and Container Yard.
6: Live Stock and Farming.
7: Hotel and Resorts.
Historical Perspective
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.
Benefits
Besides the Geo-strategic importance mentioned earlier, some of the evident economic benefits of the development of Gwadar Port are:
Capitalize on opportunities for trade with landlocked Central Asian States and Afghanistan.
Promote trade and transport with Gulf States.
Trans-shipment essentially of containerized cargo.
Unlock the development potential of hinterland.
Diversion of influx of human resources from up country to Gwadar instead of Karachi.
Socio economic uplift of the province of Baluchistan.
Establishment of shipping related industries.
Oil storage, refinery and petrochemicals
Export Processing and Industrial Zones
Reduce congestion & dependency on existing Ports Complex at Karachi/PQA.
Serve as an alternate port to handle Pakistani trade in case of blockade of existing ports.
Will become a Regional Hub for major trade and commercial activities.
>back to top
Scope of Work
The development of Gwadar Deep Sea Port as per approved PC-I and Master Plan is to be undertaken in two phases. Phase-I will comprise of:-
3 Multipurpose Berths
Length of Berths 602m
4.5 Km long Approach Channel Dredged to 11.5m-12.5m.
Turning Basin 450m dia.
One 100m Service Berth.
Related port infrastructure and port handling equipment & Pilot Boat, Tugs, Survey Vessel etc.
The port will be equipped with the essential port handling equipment and other infrastructure required for smooth operations of a modern port. On completion of Phase-I, the Port will handle Bulk Carriers of upto 30,000 DWT and Container Vessels of 25,000 DWT. Phase-I will be completed at a cost of Rs.14.9 Billion (US$. 248/- Million) and will complete in 36 months i.e. March 3005.
Phase - II
This Phase of the Project is planned to be built on BOO/BOT basis at an estimated cost US$. 600 Million. It will comprise of 9 additional berths as per following details:-
4 Container Berths.
1 Bulk Cargo Terminal (to handle 100,000 DWT ships).
1 Grain Terminal.
1 Ro-Ro Terminal.
2 Oil Terminals to handle 200,000 DWT ships.
Phase II of the project involves construction of more berths on BOT basis including two container berths, one bulk cargo terminal, one grain terminal with capacity handling vessels up to 100,000 DWT, one roll on/ roll off terminal, two oil piers for vessels up to 200,000 DWT and future expansion of two container berths. On completion of the project, Gwadar Deep-sea port would be on of the world's most strategically located port in this part of the world.
On successful completion of Phase-I, it is anticipated that the private sector would come forward to invest in the second phase of the Project. It is envisaged that the complete development of such a Mega project will take 8-10 years depending on the active participation of the private sector.
Cost of The Project (Phase 1)
Total amount equivalent to Rs 14.9 Billion (248 million US dollars) were approved by ECNEC for Phase-I of the project. The financial agreement for development of Phase-I was signed with the Govt. of China on 10 August 2001 under which the Chinese will provide US$. 198 Million and the Govt. of Pakistan will provide US$. 50 Million.
Chinese:
Grant US$ 18 Million.
New Grant Assistance US$ 31 Million.
New Interest Free Loan US$ 31 Million
Govt. Concessional Loan US$ 58 Million
Buyer's Credit US$ 60 Million
Total US $ 198.00 Million
Pakistani:
Rs. 3000 Million (US 50.00 Million) in Local Currency.
Additional Development Cost:
Additional development costs were also envisaged for Electrical Supply 132 KV Transmission Line from Turbat to Gwadar at an approx cost Rs.360.00 million and a Railway line from Gwadar-Panjgoor-Dalbandin (515 Km) at approx cost of Rs.8, 500 million. This is however not a part of the sanction to the Gwadar Port Development Authority.
Human Resource
The Chinese have mobilized several hundred of personal from China and hired thousands local workmen for several projects that are underway.
Civil Works and Infrastructure Development:
The design and construction of residential buildings and civil works of various port operation buildings and related infrastructure development is to be undertaken by Pakistani contractors and firms out of the US dollars 50 Million allocated for the Project. In this regard consultants have been hired and process for pre-qualification of contractors has commenced. Similarly, award of contract for the construction of residential area was approved by the MOC in June 2003 and the Contractor has already fully mobilized and a construction activity has started.
http://www.gawadarport.com/info.htm#top
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.
Benefits
Besides the Geo-strategic importance mentioned earlier, some of the evident economic benefits of the development of Gwadar Port are:
Capitalize on opportunities for trade with landlocked Central Asian States and Afghanistan.
Promote trade and transport with Gulf States.
Trans-shipment essentially of containerized cargo.
Unlock the development potential of hinterland.
Diversion of influx of human resources from up country to Gwadar instead of Karachi.
Socio economic uplift of the province of Baluchistan.
Establishment of shipping related industries.
Oil storage, refinery and petrochemicals
Export Processing and Industrial Zones
Reduce congestion & dependency on existing Ports Complex at Karachi/PQA.
Serve as an alternate port to handle Pakistani trade in case of blockade of existing ports.
Will become a Regional Hub for major trade and commercial activities.
>back to top
Scope of Work
The development of Gwadar Deep Sea Port as per approved PC-I and Master Plan is to be undertaken in two phases. Phase-I will comprise of:-
3 Multipurpose Berths
Length of Berths 602m
4.5 Km long Approach Channel Dredged to 11.5m-12.5m.
Turning Basin 450m dia.
One 100m Service Berth.
Related port infrastructure and port handling equipment & Pilot Boat, Tugs, Survey Vessel etc.
The port will be equipped with the essential port handling equipment and other infrastructure required for smooth operations of a modern port. On completion of Phase-I, the Port will handle Bulk Carriers of upto 30,000 DWT and Container Vessels of 25,000 DWT. Phase-I will be completed at a cost of Rs.14.9 Billion (US$. 248/- Million) and will complete in 36 months i.e. March 3005.
Phase - II
This Phase of the Project is planned to be built on BOO/BOT basis at an estimated cost US$. 600 Million. It will comprise of 9 additional berths as per following details:-
4 Container Berths.
1 Bulk Cargo Terminal (to handle 100,000 DWT ships).
1 Grain Terminal.
1 Ro-Ro Terminal.
2 Oil Terminals to handle 200,000 DWT ships.
Phase II of the project involves construction of more berths on BOT basis including two container berths, one bulk cargo terminal, one grain terminal with capacity handling vessels up to 100,000 DWT, one roll on/ roll off terminal, two oil piers for vessels up to 200,000 DWT and future expansion of two container berths. On completion of the project, Gwadar Deep-sea port would be on of the world's most strategically located port in this part of the world.
On successful completion of Phase-I, it is anticipated that the private sector would come forward to invest in the second phase of the Project. It is envisaged that the complete development of such a Mega project will take 8-10 years depending on the active participation of the private sector.
Cost of The Project (Phase 1)
Total amount equivalent to Rs 14.9 Billion (248 million US dollars) were approved by ECNEC for Phase-I of the project. The financial agreement for development of Phase-I was signed with the Govt. of China on 10 August 2001 under which the Chinese will provide US$. 198 Million and the Govt. of Pakistan will provide US$. 50 Million.
Chinese:
Grant US$ 18 Million.
New Grant Assistance US$ 31 Million.
New Interest Free Loan US$ 31 Million
Govt. Concessional Loan US$ 58 Million
Buyer's Credit US$ 60 Million
Total US $ 198.00 Million
Pakistani:
Rs. 3000 Million (US 50.00 Million) in Local Currency.
Additional Development Cost:
Additional development costs were also envisaged for Electrical Supply 132 KV Transmission Line from Turbat to Gwadar at an approx cost Rs.360.00 million and a Railway line from Gwadar-Panjgoor-Dalbandin (515 Km) at approx cost of Rs.8, 500 million. This is however not a part of the sanction to the Gwadar Port Development Authority.
Human Resource
The Chinese have mobilized several hundred of personal from China and hired thousands local workmen for several projects that are underway.
Civil Works and Infrastructure Development:
The design and construction of residential buildings and civil works of various port operation buildings and related infrastructure development is to be undertaken by Pakistani contractors and firms out of the US dollars 50 Million allocated for the Project. In this regard consultants have been hired and process for pre-qualification of contractors has commenced. Similarly, award of contract for the construction of residential area was approved by the MOC in June 2003 and the Contractor has already fully mobilized and a construction activity has started.
http://www.gawadarport.com/info.htm#top
Master Plan of GWADAR:
Concurrent with the Port development a Master Plan of Gwadar has been approved by Balochistan Government through NESPAK and which has been a hot topic of discussions at various forums. Implementation of the Master Plan is the responsibility of Govt. of Balochistan. Physically no headway has been made so far which is a matter of concern.
The following potentials have been identified in the Master Plan of Gwadar Deep Sea-port Project:
Increased trade to and from Balochistan and Iran.
Trade potential from Central Asian countries through Afghanistan.
Transit cargo (liquid and dry bulk)
Warehousing and assembly industries (EPZ)
Oil storage, refineries, petrochemical industries etc.
Handle the shipping traffic of the region.
Gwadar Master Plan envisages development of about 18,600 hectares of land for this project including the followings:
Port development in Phase 1 & 11 on 400 hectares.
An Export Processing Zone of 74 hectares located on land adjacent to the port in East Bay.
A Special Industrial Zone of about 4,000 hectares lying to the north of the town.
An oil refinery of 1,000 hectares located to the north east of the town, linked to the proposed oil terminal by an
underground pipeline across East Bay.
A residential area of 400 hectares stretching north of the existing town along West Bay.
To bring Gwadar close to the national mainstream, 700 Km long Makran Coastal Highway is in advanced stage of implementation. It will link Gwadar with Pasni, Ormara and Karachi. An other regional linkage is the Gwadar Ratto-Dero motorway linking it with Indus Highway through Turbat, Awaran and Khuzdar. A rail link is also planned to connect Gwadar to Quetta and Zahidan. Civil Aviation Authority also plans to upgrade the existing length of runway from 5,000 ft to 15,000 ft for operation of wide bodied jet air-crafts. The extension work will begin by end August, 2003 and the extension facilities will be available for use by end 2004.
>back to top
Investment Opportunities
Some of the evident investment opportunities:
Master Plan related infrastructure i.e. internal roads & services, water and power and communication ervices for the new township and the Industrial Zone.
Private owned Ware Houses and Cold Storages.
Private cargo handling equipment and trucking yards.
Corporate Infrastructure i.e. offices for operating firms & agencies.
Development of Industrial Zone and Industries.
Development of Commercial/residential areas & buildings.
Labour related amenities for thousands of workers employed on developmental work of Great Gwadar.
Hotels & Motels.
Hospitals, Colleges & Schools.
Tourism related industry.
Marine related industry i.e. shipyards, dry dock and repair yards.
Marine Fuel bunkering for visiting ships to include large fuel storages and mobile barges etc.
Oil refinery and large oil storages.
Ferry services between Gwadar-Karachi/Oman/Bunder Abbas and UAE.
Industrial Export Processing Zone
Hinterland road; Gwadar - Rattodero Expressway (735 km) will pass through Turbat-Awaran-Khuzdar & Shahdad Kot.
Gwadar-Quetta (via Turbat-Panjgoor-Kharan-Nushki) requires to be widened and improved. This link road will reduce the distance to Quetta from 1090 km to 795 km.
Railway; Gwadar - Panjgoor-Dalbadin (515 km).
Gwadar-Afghanistan via Quetta by National Highway- N-25.
Potential Projects at GWADAR Port
Gwadar being unexplored territory till to date as far as business is concerned; a lot of business activities are possible. There are numerous businesses that offer sizeable profits for the investors in Gwadar. Few are mentioned as under
Fish Processing
Shrimp farming, Shrimp /Lobsters
Crabs processing
Training services in Fisheries and Aquaculture
Cold storages, Ice factories
Port Management projects.
Seawater Reverse Osmosis Desalination Plants for profitable purpose
Hotels Restaurants & Resorts
Business Development
Date Processing
Service Providers
Canned food, Gravel Crush plant
Oil Palm cultivation (Govt. of Balochistan can provide land on easy terms)
Water sports center and recreation facilities.
Marine & Automobile repair workshop
Cluster for Internet service providers
Renewable Energy; wing, solar- IPP
Warehouses
Clearing & Forwarding agency
Boat building & naval architecture institute
Hospitals & Clinics
Oil Storage tankers.
Re-rolling Mills
Ferry Service for Karachi Ormara-Pasni- Gwadar and up to Oman and Dubai
Concurrent with the Port development a Master Plan of Gwadar has been approved by Balochistan Government through NESPAK and which has been a hot topic of discussions at various forums. Implementation of the Master Plan is the responsibility of Govt. of Balochistan. Physically no headway has been made so far which is a matter of concern.
The following potentials have been identified in the Master Plan of Gwadar Deep Sea-port Project:
Increased trade to and from Balochistan and Iran.
Trade potential from Central Asian countries through Afghanistan.
Transit cargo (liquid and dry bulk)
Warehousing and assembly industries (EPZ)
Oil storage, refineries, petrochemical industries etc.
Handle the shipping traffic of the region.
Gwadar Master Plan envisages development of about 18,600 hectares of land for this project including the followings:
Port development in Phase 1 & 11 on 400 hectares.
An Export Processing Zone of 74 hectares located on land adjacent to the port in East Bay.
A Special Industrial Zone of about 4,000 hectares lying to the north of the town.
An oil refinery of 1,000 hectares located to the north east of the town, linked to the proposed oil terminal by an
underground pipeline across East Bay.
A residential area of 400 hectares stretching north of the existing town along West Bay.
To bring Gwadar close to the national mainstream, 700 Km long Makran Coastal Highway is in advanced stage of implementation. It will link Gwadar with Pasni, Ormara and Karachi. An other regional linkage is the Gwadar Ratto-Dero motorway linking it with Indus Highway through Turbat, Awaran and Khuzdar. A rail link is also planned to connect Gwadar to Quetta and Zahidan. Civil Aviation Authority also plans to upgrade the existing length of runway from 5,000 ft to 15,000 ft for operation of wide bodied jet air-crafts. The extension work will begin by end August, 2003 and the extension facilities will be available for use by end 2004.
>back to top
Investment Opportunities
Some of the evident investment opportunities:
Master Plan related infrastructure i.e. internal roads & services, water and power and communication ervices for the new township and the Industrial Zone.
Private owned Ware Houses and Cold Storages.
Private cargo handling equipment and trucking yards.
Corporate Infrastructure i.e. offices for operating firms & agencies.
Development of Industrial Zone and Industries.
Development of Commercial/residential areas & buildings.
Labour related amenities for thousands of workers employed on developmental work of Great Gwadar.
Hotels & Motels.
Hospitals, Colleges & Schools.
Tourism related industry.
Marine related industry i.e. shipyards, dry dock and repair yards.
Marine Fuel bunkering for visiting ships to include large fuel storages and mobile barges etc.
Oil refinery and large oil storages.
Ferry services between Gwadar-Karachi/Oman/Bunder Abbas and UAE.
Industrial Export Processing Zone
Hinterland road; Gwadar - Rattodero Expressway (735 km) will pass through Turbat-Awaran-Khuzdar & Shahdad Kot.
Gwadar-Quetta (via Turbat-Panjgoor-Kharan-Nushki) requires to be widened and improved. This link road will reduce the distance to Quetta from 1090 km to 795 km.
Railway; Gwadar - Panjgoor-Dalbadin (515 km).
Gwadar-Afghanistan via Quetta by National Highway- N-25.
Potential Projects at GWADAR Port
Gwadar being unexplored territory till to date as far as business is concerned; a lot of business activities are possible. There are numerous businesses that offer sizeable profits for the investors in Gwadar. Few are mentioned as under
1
Fish Processing
13
Shrimp farming, Shrimp /Lobsters
2
Crabs processing
14
Training services in Fisheries and Aquaculture
3
Cold storages, Ice factories
15
Port Management projects.
4
Seawater Reverse Osmosis Desalination Plants for profitable purpose
16
Hotels Restaurants & Resorts
5
Business Development
17
Date Processing
6
Service Providers
18
Canned food, Gravel Crush plant
7
Oil Palm cultivation (Govt. of Balochistan can provide land on easy terms)
19
Water sports center and recreation facilities.
8
Marine & Automobile repair workshop
20
Cluster for Internet service providers
9
Renewable Energy; wing, solar- IPP
21
Warehouses
10
Clearing & Forwarding agency
22
Boat building & naval architecture institute
11
Hospitals & Clinics
23
Oil Storage tankers.
12
Re-rolling Mills
24
Ferry Service for Karachi Ormara-Pasni- Gwadar and up to Oman and Dubai
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