Gwadar - A Jewel in the Crown

[Neo]

Track linking Gwadar Port: Balochistan government seeks extra Rs 450 million from Railways ministry ​

ISLAMABAD (February 27 2009): Balochistan government has demanded extra Rs 450 million from Railways Ministry to lay out railway track linking Gwadar port with other parts of the country, well-placed sources in the ministry of Ports and Shipping told Business Recorder here on Thursday.

The allocation for lying of railways track by Railway Ministry was Rs 450 million, while the Balochistan Government is now demanding Rs 900 million for the project, the sources said. They said that the Gwadar Port is being considered a big boost to country's economy, due to which people are attaching great importance to the development of road and rail links towards the Port.

But, they said that extra demand of funds by Balochistan Government situation has made the project slow down. They said that earlier Balochistan government had asked the Railways Ministry to provide Rs 450 million for land acquisition for laying the railways track, and the ministry had disbursed the amount to the provincial government.

They revealed that a meeting was held the other day (Wednesday) in the Ministry of Ports and Shipping to discuss the development works on the Gwadar Port. Additional Chief Secretary (ACS) of Balochistan in the meeting asked the Railways Ministry to provide additional amount of Rs 450 million for land acquisition for rail link, the sources said.

ACS told the meeting that due to developmental work in the area the land prices have been doubled during the last one year for which they need more money to acquire the land for the project, they added. Sources said the Railways Ministry sought explanation from the Balochistan government regarding the increase inland prices and it has slowed down the pace of work on the project. It is pertinent to note that a feasibility study was conducted for lying of 110-km long additional railway track linking Gwadar Port with the rest of the country.

National Highway Authority (NHA) had already provided road connectivity to the Gwadar Port and was constructing more roads to provide connectivity to this port not only with other parts of the country but also with Afghanistan, Central Asian states and China. A number of projects are adversely affected by non-availability of funds, which has not only intensified the problems of the commuters but also resulted in the price escalation.

The rail links would help in stimulating trade and commercial activities in the area besides making the port fully operational. After the completion of the construction the coastal city, Gwadar will become international business and trade hub with the commissioning of deep sea port next year and its proposed link up with main railway lines network with up-country would pave the way for cheap mode of transportation to Central Asia, Europe and Africa.

 

[Neo]

Gwadar Port faces sea of problems ​

Sunday, March 01, 2009
By Hina Mahgul Rind

KARACHI: Since coming into operation in December 2008, it has been learnt that the Gwadar Port has been plagued with a host of problems such as transportation of goods into the area.

Transportation became a problem in particular after the arrival of ships carrying urea. “There is no shortage of transport, but a few contractors have monopoly in the area, which in turn is causing a price hike, among other things,” said an official.

In addition to the price hike, the official explained that in Gwadar trucks carrying cargo have no stand to park in, which has resulted in heavy traffic congestion in the city.

“Because there is no truck stand anywhere, heavy vehicles are parked on the roads, leading to congested traffic,” he said. “The safety and security of pedestrians as well as of local traffic is compromised.”

It has been learnt that a truck stand is being planned by the Gwadar Development Authority, but so far progress has been very slow.

As well as being without a truck stand, the port lacks direct access to the Coastal Highway. The East Bay Expressway, a project of the Gwadar Port Authority, aims to remedy the situation, but even here there has been little progress. If successful, the East Bay Expressway will aid a smooth flow of vehicles not only in the port area, but also further inside the city.

Currently, the Coastal Highway itself is burdened with additional problems. While many of the heavy vehicles approaching Gwadar are without cargo, a large number of vehicles are overloaded. Officials say that overloading is not a problem with urea, but it is with wheat, which has 50 per cent more weight in the same volume as urea.

Allegedly, the Coastal Highway was built in a hurry with builders compromising on quality. Those involved in the business warn that if the trend of overloading continues, the highway may not be able to sustain the traffic for much longer.

 

[rai naeem asad]

gawadar is so important for us n our economic national position

 

[Neo]

Gwadar Port deal with SPA unlikely to be scrapped ​

ISLAMABAD (March 28 2009): The government is unlikely to scrap the Gwadar Port agreement with the Singapore Port Authority (SPA), fearing that the operators would drag it into international arbitration, and would claim reputation damages, sources in the Ministry of Ports and Shipping told Business Recorder here on Friday.

The Minister for Ports and Shipping, Nabeel Gabool, had announced a couple of days ago that the government would cancel Gwadars pact with SPA and hand over the port to the provincial government. "Ports are Federal territories are covered under Federal Legislative List, Fourth Schedule of the Constitution.

For giving Ports in provincial control, Constitutional Amendment is required, with 3/4 majority," said sources. If the government cancelled the contract agreement of PSA, it would effectively imply a default on the part of the GoP, which would incur compensation, to be paid to PSA, under the terms of contract agreement, as well as compensation claim for damages for reputation, which would be handled under international arbitration, they said.

According to the agreement, failing amicable settlement and/or settlement the dispute or differences or claims, as the case may be, shall be finally settled by binding Arbitration under the Rules of the Court of Arbitration of the International Chambers of Commerce by a sole arbitrator appointed in accordance with the said Rules. The place of arbitration will be London.

There are reports that Gwadar Port Authority (GPA) has also defaulted on its commitment to provide 926 hectares land for free zone area at Gwadar Rato Dero road, which is essential to start commercial operation of the port. "GPA has not protected 18,000 hectares land allotted to Gwadar Port free of cost in 1996, as was committed by the Prime Minister," sources added.

Another issue is that the previous Sindh government had demanded KPT and PQA to be handed over to Sindh government. KPT has 4,000 acres; Port Qasim has 10,000 acres and Gwadar needs 30,000 hectares. And, just like any other port, Gwadar needs road and rail connectivity.

Analysts are of the view that in the present case, it is also an attempt to seek political mileage and an attempt to pacify the angry Baloch nationalists who did not have a say in awarding contracts in the province. The Planning Commission, provincial government, and Gwadar District Nazim were fully involved from the stage of conception to construction of berths by Chinese contractors and subsequent award of contract to a world class port operator.

The Master Plan of Gwadar city, the terms of the contract with regard to it and tax holiday period were approved by the federal cabinet which was duly represented by provincial Chief Minister Jam Yousuf. It is pertinent to mention here that Prime Minister Benazir Bhutto had approved the construction of a deep-water port project at Gwadar on BOT terms for 50 years.

Other approved terms included (a) 18,000 hectares of land to be provided by the Government of Balochistan "free of cost"; (b) Wapda to provide electricity; (c) NHA to construct 895 kilometres Gwadar-Rato Dero Road and Gwadar-Karachi Coastal Highway; (d) free of cost (except development charges) land to be provided for establishing industrial ventures and warehouses and; (e) Offer of concessions comparable with those available to existing free zones in Far East to world class companies.

After military take-over in 1999, the project was, however, cancelled. While celebrating 50 years of Pak-China Friendship in 2002, China agreed to construct the port with $250 million loan on generous terms: phase-I of the project being construction of 600 meters of berths.

In 2006, tender was floated for operation of Gwadar Port, marine services and Free Zone on BOT for 40 years. After due competitive process, GPA signed an agreement with Port Singapore Authority. As per terms, PSA delegated the task to three joint venture companies: two local investors ie AKD and NLC are also the partners of PSA in Gwadar Port.

Analysts are of the view that the slow progress to get Gwadar fully functional has nothing to do with the agreements between GPA and PSA. They say that no port can function without a commercial hinterland attached to it with requisite infrastructure for domestic and transit cargo.

There are questions as to why the 2001 directive of the Prime Minister to freeze allotment of all land in Gwadar city area and transfer of all government land to the port was not implemented? Shaukat Aziz Cabinet, after due approval from President Musharraf had ordered Pakistan Navy to shift to a new location and have the earmarked contiguous area of the port transferred to GPA.

According to sources, operators are demanding, of the government, to make Gwadar port functional; that Pakistan Navy, Coast Guard lands should be handed to them; and Port Master Plan should be strictly adhered to. There are also unconfirmed reports that GPA Chairman (Adm) Saeed has caused GoP to default on Agreement terms. He refused to give Navy land to GPA, and guided Navy to build shipyard on that piece of land.

 

[A1Kaid]

I have studied the Gwadar Port heavily, for several years now.

But I would like to know further about Chinese presence and involvement at Gwadar Port.

I understand they have a Naval/military personnel presence there. But specifically, is China going to dock heavily armed war ships, or just mainly oil tankers...? (I believe both but I have some uncertainty)

How many Chinese personnel will be present in Gwadar at a time, civilian or military personnel?



I bring this up because I am interested in Chinese future (possible) militarization of Gwadar Port. As Gwadar Port is in close proximity to the Persian Gulf the Chinese 'String of Pearls' dream requires China to develop a 'Blue Water Navy' which means dominating the seas with military prowess, and developing Naval bases throughout Asian and possibly African coastlines.

So this dream and national policy of China would suggest possible militarization of Gwadar on their part, we know there will be militarization on our part, because Gwadar Port is not only an economic asset and trade hub but a strategic naval port for Pakistan.


Another question I would raise, because there is Chinese naval and/or maritime personnel there how are they involved in the security arrangement.

For example, Gwadar is attacked by a foreign Navy, what will the Chinese Navy present at Gwadar do in response....I once read a very long article about this, and Pres. Musharraf hinted that Chinese Navy there would respond in a forceful way, as a protector or some sort or extra security layer...However, I would like to know more about this, more about the security protocols.

Anyways I am trying to look at Gwadar through the security, war, and military dimension, beyond the economic one...

 

[ajpirzada]

Law ministry for transfer of naval land to Gwadar Port Authority
TAHIR AMIN
ISLAMABAD (April 02 2009): Law ministry has given a go ahead to Ports and Shipping ministry to transfer 584 acres of naval land at East Bay to Gwadar Port Authority (GPA) to establish Free Industrial Zone.

Ports and Shipping ministry will move a summary within few days to seek Prime Ministers approval for transfer of land to GPA in the light of the opinion given by Law ministry, well placed sources in the ministry of Ports and Shipping told Business Recorder here Wednesday.

Sources revealed that earlier Prime Minister had rejected the summary and the P&S ministry has now sought legal guidance from the Law ministry that has backed the transfer of land to GPA.

Law ministry has said that if the land is not transferred to GPA, it would be difficult for the Authority to follow the confessional agreement signed with Singapore Port Authority (SPA), sources maintained. "The ministry further said that denial of land transfer would lead to legal complications with the SPA" sources added. Ports and Shipping ministry had informed the Law ministry in its letter that land was transferred to Defence ministry that could be used for Pakistan navy.

The ministry in a letter addressed to the Law ministry said that Balochistan government had 9000 acres with sea access to 278 acres, which is available for the ministry of Defence to shift its infrastructure to safeguard the coastal belt of Gwadar, sources added.

On the other hand sources said P&S ministry in its letter opined that by not transferring the Free Zone land to the Port of Singapore Authority (PSA) in accordance with the terms of the agreement is tantamount to breach of the pact.

The concession Agreement also provides that the Free Zone Area will be custom free and grants may be established in the Zone. Under clause 5.3.3 of the concession Agreement, it is mutually agreed by both the parties that GPA shall acquire the land for the Free Zone Area on or before the following dates.

In the letter, the P&S ministry has proposed that if the ministry desires transfer of Defence land to GPA on gratis basis, then PMs approval may be obtained for the transfer of the said land.

Sources further added that the port was formally inaugurated on March 20, 2007 and is presently handling wheat and urea shipments successfully. The operation of the port has been assigned to the PSA, the operators of international repute, for a period of 40 years under a concession Agreement signed between GPA and the PSA on February 6, 2007. The scope of the concession agreement includes cargo/terminal operations at the existing facilities and development of additional berths on 4.2Km space, which is available for this purpose.

Sources said that Free Zone is key to meeting Gwadar ports primary objective of transshipment. There could be no Free Zone without transshipment. The purpose of the free zone is to augment and supplement port activities and to value-addition of cargo, thereby attracting more shipment into the port which is the real source of revenue generation, sources maintained.

Realising the importance of the Free Zone Area, the then President and the Prime Minister directed on February 2, 2007 that 584 acres of land in the possession of Pakistan Navy at East Bay, Gwadar should be handed over to GPA, for the said purpose as soon as possible.

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

Big ships at Gwadar Port: PSA to enhance discharging capacity to 10,000 metric tones ​

KARACHI (April 03 2009): The Port of Singapore Authority (PSA) will enhance its ship discharging capacity to 10,000 metric tones per day, as deeper-draft vessels carrying the largest ever quantity of bulk wheat have arrived off the port, Business Recorder learnt on Thursday.

According to official sources in PSA the newly operational Gwadar Port was all set to accommodate M/v Agios Raphael, carrying 66,000 metric tons of Russian wheat, within next five days. They said the ship, which had arrived off the port early on Thursday morning, would be a big vessel with 12.5-meter draft carrying the largest bulk quantity of wheat in the countrys history.

They said the PSA, Gwadar Ports operator, would double its per day ship discharging capacity by 5,000 MT to 10,000 MT to cope with the fast-arriving heavily-loaded big vessels at port.

The standard discharge rate at local ports stood at 5,000 MT per day, they added. They said the deeper-draft ship would be directly berthed at the Balochistan-based port. The sources said another big vessel, M/v Panagiotios, was also awaiting wharfage at Gwadar Port with at least 64,000 MT imported wheat.

They said Gwadar Port, which has a 12.5-meter permissible draft at its disposal as a comparative advantage, had successfully handled another ship, M/v Popi S, with 12.7 meters deepest draft and 64,000 MT wheat on February 28. It would be pertinent to mention here that the permissible draft at Karachi Port and Port Qasim is 10.5 meters, two-meter less than Gwadar Port that was built in 2006 to cater to the future needs of mother vessels.

The safe handling of big ships, like M/v Agios Raphael and M/v Panagiotios, at Gwadar Port would augur well for the new port and its Singaporean operator, which had previously been under fire for declaring a "wrong draft" for M/v PS Glory. The deeper-draft vessel had, however, been unloaded by the PNSC ships through lighterage at the outer anchorage of Gwadar Port.

 

[SEAL]

Three days ago my teacher(who is certified charted accountant) told me that the 6 month revenue of gawadar port is approx 16billion$

 

[Hasnain2009]

After 10 year!!

 

[Neo]

Gwadar Port - a question of control​

(April 05 2009): According to a press report, representatives of the PPP and the MQM sharing the portfolio of ports and shipping as senior and junior ministers are on opposite sides over the question whether Islamabad or the Balochistan government should have control of the Gwadar Port.

The Minister of State Nabil Ahmed Gabol of the PPP is said to be working on a proposal to hand over administrative control of the port to the provincial government, which the Minister for Ports and Shipping, Babar Khan Ghauri is against.

The proposal is part of the PPP government's strategy to appease the Baloch nationalists who have a long list of grievances against the federal government, and are embroiled in a bloody conflict with the Federation for the realisation of what they see as their just economic rights. Ghauri is reported to be opposed to the move, citing the constitutional provision under which ports and shipping fall in the list of federal subject.

On the face of it, the PPP's is an admirable stance. No one can deny that the Baloch people have been given a raw deal by successive governments at the Centre, which is at the back of the ongoing insurgency in the province. In terms of natural resources it is Pakistan's richest province.

In fact, Islamabad's dream to become the Gateway to Central Asia and also to provide China with a shorter access route for its energy supplies is also linked to Balochistan via the newly constructed port at Gwadar. A huge section of the much-awaited Iranian gas pipeline is to pass, too, through the province. Indeed, Balochistan figures prominently in this country's plans for progress and prosperity.

Yet it remains the least developed unit of the federation. The nationalists see Gwadar as yet another attempt by the Centre to exploit its resources at the expense of local people. It goes without saying that the Baloch people have a genuine sense of deprivation, which must be addressed as urgently and effectively as possible. The appeasement of the Baloch people is highly desirable. But the issue of Gwadar Port's control is rather complicated.

First of all, as Ghauri is reported to have pointed out, it is a federal subject. That is why the two ports in Sindh are not under the provincial government's administrative authority. Some people, however, argue that this hitch can be removed through a constitutional amendment. In fact, the current political discourse includes strong demands for greater provincial autonomy, and a new social contract.

Baloch leaders are vociferous in saying they want control over their economic resources, including the port. The problem though is not only a constitutional impediment that is removable, but the need to strike a right balance between the federal and provincial powers. While the PPP must be supported in its efforts to give due recognition to Baloch rights, this must be done in a careful manner so as to avoid causing systemic distortions that might create new difficulties.

 

[Omar1984]

^ The ports in Sindh are not under the Sindh government's control but its in the control of the federal governemnet, the same should be the case with Gwadar Port. All Ports are under the control of the federal government regardless of which province the port is in.

However, natural resources that comes out of the province of Balochistan, such as gas and oil, should be in control of the provincial Balochistan government.

 

[Luftwaffe]

Strongly Disagree brotha...
>>>natural resources that comes out of the province of Balochistan, such as gas and oil, should be in control of the provincial Balochistan government.

They should be in control of both fedral and provincial Govts as Federal Govt is the one that will be spending major portion/investment in provinces if such is the state that every province claims its control over its resources than we might see another Serbia where provinces were fighting over this and that and control.

Province should have 40-50 percent control and the rest should be left to Federal and is more feasible.

 

[Omar1984]

Strongly Disagree brotha...
>>>natural resources that comes out of the province of Balochistan, such as gas and oil, should be in control of the provincial Balochistan government.

They should be in control of both fedral and provincial Govts as Federal Govt is the one that will be spending major portion/investment in provinces if such is the state that every province claims its control over its resources than we might see another Serbia where provinces were fighting over this and that and control.

Province should have 40-50 percent control and the rest should be left to Federal and is more feasible.

I dont know how much of the natural resources of Balochistan the Balochistan government controlled in the past but 50% control of those natural resources for the Balochistan government and 50% control of those natural resources for the Federal government sounds fair.

As for ports, all the money and work on building those ports come from the federal government. Even the loan that comes from other countries, like our friend China, the federal government has to pay back that loan. It doesnt make sense for any port in Pakistan to be under control of the provincial government, Sindhis never asked for the Karachi Port and Port Qasim to be under control of the Sindh Government.

 

[Hasnain2009]

I agree with u omar!!

And port should be operated by federal govt, as every know there is a big game planned for Gawadar, by RAW, CIA and Mossad!!

 

[UnitedPak]

Gwadar port can open immense opportunities for import, export of petroleum products: Dr Asim

ISLAMABAD, Apr 24 (APP): Adviser to Prime Minister on Petroleum and Natural Resources Dr Asim Hussain said on Friday that Pakistan offers shortest access to Central Asian countries to the warm waters of Arabian sea and has successfully developed a modern deep sea port at Gwadar,at the mouth of Persian gulf.

During his address to the conference titled “Reliable Transit of Energy and its Role in Stable Economic Development and International Cooperation”, in Ashghabat he said that the Gwadar port can open immense opportunities for the import and export of petroleum and other products which will bring prosperity and the land locked countries,by opening the world markets to them.

He said that “Pakistan is willing to offer opportunities and transit facilities for the import of goods and products,at internationally competitive terms.”

Dr Asim said Pakistan’s historical relations with Turkmenistan are not new as Pakistan was one of the first countries to extend diplomatic recognition to Turkmenistan as an independent state in December 1991.

H said that Pakistan and Turkmenistan share a lot of common history,and have similar culture,traditions and values.

“The bilateral cooperation between the two brotherly countries in various affairs of the state speak of the trust and confidence we repose in each other”,he added.He hoped that this relationship can turn into a fruitful partnership in the future with mutual benefit to each other and thus help to the world mutually.

Dr Asim Hussain said that Pakistan is a country of about 166 million people,and has witnessed rapid economic growth in the recent years with the GDP growth averaging 6.5 per cent per annum in the last five years.

During 2008,Pakistan’s primary energy demand stood at 62.9 million tons of oil equivalent MMTOE which has grown at an annual compound rate of 6 per cent per annum during the past five years.

He said that during 20008 Pakistan produced nearly 41 billion cubic meters of natural gas,which has grown at annual compound rate of 7.7 pc over the past five years.

He said that at present the country’s natural gas consumption is met by indigenous sources only but it caters upto 50 pc of our total requirement.

To meet this shortfall,gas import projects both liquified and piped are planned and in various stages of development,he added.HE said that Pakistan has developed a vast gas transmission network of nearly 10,000 km which is ideally suited to economically transport large volumes of local and imported natural gas to load centers.

He said that Pakistan’s natural gas demand is rising rapidly and it is expected that it will increase to around 129 BCM per year by 2025,thus offering a huge market to potential gas suppliers including LNG.

Dr Asim said that Pakistan was strategically located south east of Turkmenistan,providing the shortest possible route to the high consumption energy markets in Pakistan and India.

He said that Turkmenistan-Afghanistan-Pakistan-India (TAPI),Gas pipeline project provides an excellent commercial link on top of the historical links that already exist among the regional states.The project envisages the construction of a 33 BCM per year pipeline,traversing through Afghanistan to reach Pakistan and onwards to India.The ADB has conducted a feasibility study,and found the project to be commercially and economically viable.

He said that recently there have been some useful discussions on commercial terms,paying the way for conclusion of agreements.With he recent discovery of huge gas reserves in Turkmenistan,it is expected that the issue of availability and dedication of exploitable gas reserves for the project would also be sorted out,and the project will become a reality in the foreseeable future.

He further said that Pakistan has recently issued its petroleum Exploration and Production Policy which is investor-centric and offers opportunities to investors in exploration and production sector.

Associated Press Of Pakistan ( Pakistan's Premier NEWS Agency ) - Gwadar port can open immense opportunities for import, export of petroleum products: Dr Asim