Gwadar - A Jewel in the Crown

[Neo]

ISLAMABAD (September 14 2006): Minister of State for Parliamentary Affairs Kamil Ali Agha on Wednesday told the Upper House that the Gwadar port would become functional by December.

Replying to a question of Senator Muhammad Talha Mahmood, Kamil Ali Agha, on behalf of the Minister for Ports and Shipping, said that 95 percent of the work pertaining to Phase-I Gwadar port and 70 percent of additional dredging work for deepening of channel to 14.5 metres had been completed.

He said in December, the tender would be floated to hand it over to the operators. Kamil Ali Agha assured the House that by December the port would be used for shipment, and added there were some technical problems, including construction of roads, due to which it would not be used for transit.

He said deepening of Karachi port was also under process with its own expenses. He rejected the misconceptions that the money was being taken from Gwadar port funds for deepening of Karachi port, saying it was not true.

 

[Neo]

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ISLAMABAD: Minister for parliamentary affairs Dr Sher Afgan said Gwadar Port project will not be affected due to the death of Nawab Akbar Bugti and it will be completed in due course of time.

He said this while replying to a query in national assembly Wednesday. He told that proposal was given to set up duty free port in Gwadar port so that enormous revenue could be generated. The nation will benefit largely from the duty free port. Bars will open up and Ulema will raise objections over them.

He informed pension amendment scheme 2001 will not be applicable to retired employees of Karachi Port Trust as they fall under the category of federal government employees. The employees of KPT are employees of corporation, therefore, they are governed by different rules. The pension record of these employees is compiled after two years.

Meanwhile, Federal Minister for Communication Shamim Siddique in question hour Wednesday told National Assembly that government had to bear a loss of Rs 6.5 million during the year 2005-2006 because of corruption in distribution of pensions while Rs 5.31 million have been recovered.

He further told that this corruption was made in Post Office Shuja Abad of Multan district,Hari pur GPO Takht Nasrati, Post Office Naragi of Chakwal district, GT road GPO and Post Office Daultana Rawalpindi.

Federal Minister for Defence Rao Sikandar Iqbal told NA that monogram of Pakistani flag on PIA planes has not been changed while colour of six planes for national flights has been changed.

He further said that PIA has increased five dollars for international tickets because of constant increase in fuel prices. "PIA did not change timing of any International flight. However, timings of some of national flights has been changed for the convenience of passengers", he added.

Federal Minister for Environment Faisal Saleh Hayat told the house that four countries including UK, Japan, Canada and India have provided funds for environment improvement during the five years.

Federal Minister for Shipping Babar Khan Ghauri told NA that Gawadar Port would partly be completed till June 2007 and would be opened for trade purposes.

Federal Minister for Petroleum Aman Ullah Khan Jadoon while answering to a question said that the petroleum ministry has recruited twenty three officials from grade one to eighteen during the year 2005-2006. All these recruitments were made after advertisement in national newspapers.

He further told five companies are exporting petrol and diesel from Pakistan while 39923 tons petrol has been exported to Afghanistan during four years.

Answering to a question, he said that plan to construct modern refinery on Khalifa Point and Hub Balochistan till 2010 is under consideration and $ 3.5 billion is estimated for this project. It would help to pump out 200,000 to 300,000 barrels oil per day. "Gas prices for house hold purposes have been increased from fourteen to twenty percent since January 2006", he added

 

[Neo]

Sunday, October 01, 2006javascript:; http://www.dailytimes.com.pk/print.asp?page=2006\10\01\story_1-10-2006_pg5_8
‘Large oil refinery being set up in Gwadar’

QUETTA: Governor Balochistan, Owais Ahmad Ghani, has said the government would establish an oil refinery at Gwadar and complete dredging work of the port by the end of the year.

Talking to a delegation of the area people led by the district Nazim at Gwadar on Saturday, he said, “the port town would soon become a corridor of trade and energy.” Survey for establishment of a large oil refinery has already been launched,” he said.

The governor assured the delegation that after finalizing the airport project and Jinnah Avenue ban on transfer of property would be lifted. Earlier, Director Gwadar Development Authority Ahmad Bakhsh Lehri and Project Director Gwadar Port Authority Commodore Munir Wahid briefed the governor about the development projects in Gwadar.

He said that work on Gwadar-Gabd section of Coastal Highway has been launched which would link Iran border in two years.

 

[Neo]

Gwadar port fully complied with ISPS code

KARACHI (October 10 2006): The Gwadar Port Authority (GPA) has fully complied with the requirements of International Ship and Port Facility Security (ISPS) code. According to a statement issued here on Monday, the Port Facility Security Plan of GPA were scrutinised and approved by the directorate-general, ports and shipping, Karachi.

The director-general, ports and shipping has now issued a "statement of compliance of a port facility" to the GPA, as required under the provisions of ISPS code on October 5.

The ISPS code is mandatory requirement under SOLAS Chapter XI-1 to which Pakistan is signatory. After 9/11, the IMO approved this new measure of security for ports and ships enable protect them from any terrorist activity. IMO has been advised that the Gwadar is also ISPS compliant port as stated by Captain Anwar Shah, director-general, ports and shipping.

 

[Neo]

Saturday, October 14, 2006

Aziz unveils ‘new vision for Balochistan’

* PM announces Rs 19.5b development package, 32,000 jobs for province
* Says govt ready to talk to anybody for consensus on national issues

QUETTA: Prime Minister Shauakt Aziz on Friday unveiled the ‘New vision for Balochistan’, which will provide policy guidelines to develop Balochistan, create new jobs, ensure quick development and promote an investment-friendly atmosphere in the province.

Addressing a press conference at the Governor’s House, Aziz announced a Rs 19.5 billion development package and 32,124 jobs for Balochistan this fiscal year. He said that 7,300 people would be recruited to the Pakistan Army, 11,000 to the Food and Agriculture Ministry and 13,000 to vacant posts in the province. He said the Food and Agriculture Ministry would create another 500 jobs this year.

“Another 5,000 jobs from grades 1 to 16 have been allocated for Balochistan in federal departments, while 6,000 more jobs will be available to Balochistan after a recent increase in the job quota for the province from 3.5 percent to 5 percent,” he said.

Aziz said that 160 jobs had been allocated for Balochistan in the Pakistan Ordnance Factory in Wah and the Aeronautical Complex in Kamra and 365 in Sheikh Zayed Hospital in Quetta. “All jobs will be advertised in local newspapers and recruitments will be made in Balochistan,” he said. “We will also begin an internship scheme in government departments all over the country under which young people will get jobs in various departments on a monthly allowance of Rs 10,000,” he said. Admission quotas and scholarships for Baloch students in various colleges and universities of the country have also been increased, he added.

Giving a break up of the Rs 19.5 billion development package (the Incremental Financial Support 2006-07) for Balochistan, Aziz said that Dera Bugti and Kohlu districts would get Rs 2.5 billion under a special package. He said the development package also included Rs 6.3 billion for the province under the National Finance Commission Award and Rs 2 billion under the gas development surcharge. He said the government would soon provide Balochistan 200 bulldozers.

Replying to a question, he said the government was ready to talk to anybody for broader consensus on national issues. He, however, vowed not to compromise the stability, sovereignty and integrity of Pakistan.

To another question, Aziz said a Senate committee led by Senator Wasim Sajjad was working on provincial autonomy, adding that the government would progress on the issue on the basis of the committee’s recommendations.

The Balochistan chief minister and governor earlier held separate meeting with Aziz and briefed him about multiple issues.

http://www.dailytimes.com.pk/default.asp?page=2006\10\14\story_14-10-2006_pg1_9

 

[Neo]

Hutchison plans to invest in Gwadar port project

ISLAMABAD (October 14 2006): Hutchison Port Holding plans to increase its investment in Pakistan, possibly in the Gwader seaport project which, the group's chief executive, J E Meredith, said has the potential to become regional hub for trade.

He said that Pakistan is in his group's regional focus because of its geo-strategic location and investment-friendly polices. Hutchison Port Holding, which operates in 44 countries around the world and is already working in Pakistan, has plans to invest more in the ports sector, possibly by way of joint venture on public-private partnership basis, he said.

He expressed these views in his meeting with Prime Minister Shaukat Aziz here at the Prime Minister House on Friday. Also present at the meeting was Ports and Shipping Minister Babar Khan Ghouri.

Prime Minister Shaukat Aziz said the investment regime of the government, incentives, and the level playing field provided to investors, reduced the cost of doing business, openness of policies and transparency in transactions was attracting higher investments and Pakistan is geared to become a regional hub for trade and manufacturing.

He said that Pakistan, being a country of 160 million people with a huge market, offers attractive investment opportunities, particularly in the areas of power, energy, railways, IT & telecom, ports and shipping, construction and real estate sectors.

The reform agenda of the government is based on the philosophy of privatisation, deregulation and liberalisation, and transparency is the hallmark of all government transactions, he said, and added that the government was encouraging investments on public-private partnership basis.

The Prime Minister said the size of the economy had doubled during last seven years. Last year, the GDP growth was 6.8 percent. Per capita income grew at an average rate of 13.9 percent per annum during last four years, rising from $582 in 2003 to $847 in 2006. Poverty is declining and 15 million people have been brought out of poverty net in last five years.

The PM said that Pakistan was fast becoming a regional hub of IT, telecom and media business and a large number of companies are shifting their businesses to Islamabad as doing business is more feasible in Pakistan.

The Prime Minister said that as a result of the fast growth and investments being made by the private sector, there is a skills gap and the government has initiated many programmes for capacity building of the technical manpower.

 

[Neo]

Saudi Arabia to be offered Gwadar as energy corridor

ISLAMABAD (October 15 2006): Pakistan, during meetings between the two countries next month, will offer to Saudi Arabia the use of the Gwadar deep-sea port as energy corridor, official sources told Business Recorder here on Saturday.

They said that the first phase of the deep-sea port has almost been completed, at a cost of Rs 15 billion, and it would become operational in about two months' time.

They said that with the functioning of Gwadar port, Pakistan would become a hub of trade in the Gulf region and would serve as an energy corridor for Central Asia, Middle East, South Asia and western parts of China.

Gwadar is located at the entrance of Persian Gulf, from where 40 percent oil containers pass. "Negotiations with various private parties are underway for handing over operational rights of the port," sources said. Besides, the geo-strategic importance, some of the evident economic benefits of the development of Gwadar port are as follows:

To grab trade opportunities with landlocked Central Asian States and Afghanistan. Promote trade and transport with Gulf States. Trans-shipment essentially of containerised cargo. Unlock the development potential of hinterland. Diversion of influx of human resources from upcountry to Gwadar instead of Karachi. Socio-economic uplift of the province of Balochistan. 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 alternative port to handle Pakistan's trade in case of blockade of existing ports. Will become a regional hub of major trade and commercial activities.

 

[Neo]

SC annuls land quota allotment in Gwadar

QUETTA:October 21, 2006: A division bench of Supreme Court has observed that the Balochistan Government is not competent to allocate land quota in Gwadar for allotment, and ordered cancellation of all land quota, whether industrial or residential, allocated to MNAs, MPAs, senators, ministers and other dignitaries, in Gwadar.

The bench also directed for cancellation of the 50 plots allocated for allotment to serving and retired members of judiciary in Sanghar Housing Scheme, Phase-V, in Gwadar.

All allotments, mutations, alienation, transfers made in favour of any private party after the first hearing of the petition, that is October 5, 2006, were also declared as of no legal effect and their copies were directed to be sent to the Registrar, Supreme Court in Islamabad, so that their legality, authenticity and genuineness could be assessed.

The bench also restricted Chief Minister, Revenue Minister and Board of Revenue Balochistan from allotting land in Gwadar in violation of the statutory Land Lease Policy notified through a notification by Balochistan Government on December 1, 2000.

It ordered the Balochistan Government to formulate a comprehensive policy for state land in Gwadar for its allotment and disposal to be based purely on transparency and fairness.

The bench ordered the senior member, Board of Revenue, to point out all illegal allotments made during last five years in Gwadar. "A complete record of all the allotments during the last five years be furnished within four weeks to the Registrar Supreme Court of Pakistan in Islamabad," it directed.

The bench, comprising Justice Javed Iqbal and Justice Raja Fayyaz Ahmed, issued the directives while hearing a petition filed by a woman, Zahra Bibi, who complained that her land had been taken by the provincial government, and prayed for allotment of alternative land to her as promised by Balochistan Chief Minister.

The bench directed Secretary, Law, Balochistan, to furnish explanation as to how contradictory opinions were tendered which culminated into allotments of 4100 acres land in favour of Mir Nazar Kalmati and his family through a notification issued by Capt Fariduddin Ahmedzai, Principal Secretary to Balochistan CM.

The Secretary was also directed to furnish the complete data of the pending cases about the allotment, mutation, alienation and claims with respect to land located in Gwadar against the government to ensure that satisfactory arrangements have been made to defend the government properly.

It also directed the Advocate General Balochistan to procure all judgments passed by Qazi courts, Majilis-e-Shoora and Balochistan High Court during last five years regarding allotment, mutation, alienation and ownership of land in Gwadar and to submit their copies to the Registrar Supreme Court in Islamabad within four weeks.

The bench also ordered for submission of details of all allotments, sale, disposal and exchange of industrial plots in Gwadar indicating how the allotment was made and in whose favour, and by whom. The details of the amount received in this regard will also be placed before the Registrar Supreme Court in Islamabad within four weeks.

It directed the Member, Board of Revenue, to submit to the Registrar Supreme Court the list of names of all EDOs (Revenue), Tehsildars, Naib Tehsildars and Patwaris, who remained posted in Gwadar during last five year.

The bench observed that the Executive District Officer (Revenue) and the Settlement Officer posted in Gwadar were inefficient and that they failed to check the illegal transactions, mutations.

It directed for their immediate transfer and submission of report within a week to the Registrar Supreme Court. It also directed for disciplinary action against them.

The Court ordered for transfer of Tehsildar Gwadar and disciplinary action against him and its finalisation within four weeks for mutating the land and his irresponsible attitude towards public duties. If needed, a criminal case be also registered against him, the Court further ordered.

It clubbed the petition with the others of the same nature pending at the principal seat of Supreme Court in Islamabad and directed for fixing of all such appeals and petitions before a larger bench at some early date after soliciting the approval of the Chief Justice.

 

[niaz]

Just making a deep water port will do nothing. There are other very good deep water modern ports in the area such as Salalah im Oman and Chah Bahar next door in Iran. None of these ports have achieved no where near their potential. Gwadar is too far from Karachi to be favoured by Pakistani Importers and Exporters. Any successful port must have access to either an export centre or a consumption centre. Ports such as Jebel Ali or Rotterdam are an exception.

I am also surprised at phrases such as Energy Corridor. For whom?. Saudi Arabia's main customers are in the Far East or in the West, and oil moves in VLCC's. Iran and all GCC countries have their own export terminals. What advantage has Gwadar to offer to these countries who already have modern and better ports and export facilities? Are we living in a fool's paradise. Gwadar offers no advantage over any of the Arab Gulf ports except that it is outside the Straits of Hormoze but the same can be said of Fujairah and Salalah.

This port's future lies in attracting transit trade for Afgahnistan and Central Asia. It can provide cheaper and more efficient gateway for imports into as well exports out of Central Asian countries.To achieve this end we must have means of transport in place. This means that 'Safe' and good quality roads thru Baluchistan all the way up thru Afghanistan east to Uzbekistan and another one north to Turkmenistan. Until such time that this infrastructure is in place and no law and order problem exists, regret to say that Gwadar would be just another fishing port and an alternate port for Pakistan.

 

[Neo]

Just making a deep water port will do nothing. There are other very good deep water modern ports in the area such as Salalah im Oman and Chah Bahar next door in Iran. None of these ports have achieved no where near their potential. Gwadar is too far from Karachi to be favoured by Pakistani Importers and Exporters. Any successful port must have access to either an export centre or a consumption centre. Ports such as Jebel Ali or Rotterdam are an exception.

Salalah doesn't give you a land link with CAR or China and Iran is politically too isolated and an economic pariah state which will affect future development of Chah Bahar.

I am also surprised at phrases such as Energy Corridor. For whom?. Saudi Arabia's main customers are in the Far East or in the West, and oil moves in VLCC's. Iran and all GCC countries have their own export terminals. What advantage has Gwadar to offer to these countries who already have modern and better ports and export facilities? Are we living in a fool's paradise. Gwadar offers no advantage over any of the Arab Gulf ports except that it is outside the Straits of Hormoze but the same can be said of Fujairah and Salalah.

Energy corridor to and from CAR and China, we're talking about multi directions here. Oil and gas will flow into China via Gwadar and CAR gas will be exported at the same time.
Western China is one of the fastest fevelopping regions in Asia and she's hungry for energy. Till now Gulf oil is shipped all the way through Melacca to Fouzhou and Shanghai where it has to travel another 5000km overland to reach western China.
For strategic region, China is willing to secure this corridor from an ally.

This port's future lies in attracting transit trade for Afgahnistan and Central Asia. It can provide cheaper and more efficient gateway for imports into as well exports out of Central Asian countries.To achieve this end we must have means of transport in place. This means that 'Safe' and good quality roads thru Baluchistan all the way up thru Afghanistan east to Uzbekistan and another one north to Turkmenistan. Until such time that this infrastructure is in place and no law and order problem exists, regret to say that Gwadar would be just another fishing port and an alternate port for Pakistan.

Balochistan needs its own deep sea port for several reasons and Gwadar is the answer. Not only will it compliment Karachi and Port Qasim, it has the potential to become a hub for metal and petrochemical export hub.
From 2010 and on Pak copper export will be 400.000 ton p/a, mines are closer to Gwadar than any other port in Pakistan.

 

[Neo]

China to build 4 more VLCCs

BEIJING, Oct 28: State-owned China Shipping (Group) signed a contract on Saturday to build four very large crude carriers, part of China's plans to transport a bigger ratio of its oil imports in its own ships, state media reported.

China Shipbuilding Industry Co. agreed to deliver the 308,000 deadweight ton ships in 2009 and 2010, the official Xinhua News Agency said. State television said the deal was worth US$450 million.

The new ships will boost China Shipping (Group)'s capacity to import oil to 100 million tons a year, Xinhua said. The company currently has three VLCCs, and another shipbuilder is due to deliver five more starting in the second half of 2007.

China imported 127 million tons of crude oil and over 30 million tons of oil products last year, and crude imports are expected to exceed 200 million tons in 2010, Xinhua said. To ensure its energy security, China aims to raise the proportion of its crude oil and products imports carried by Chinese ships to 50 per cent after 2010, up from less than 20 per cent now, Xinhua quoted an unnamed official as saying.
http://www.dawn.com/2006/10/29/ebr25.htm

China will need many more VLCC's to meet her growing demand for energy.
Pakistan's proposed energy corridor might turn up feasible afterall.

 

[niaz]

China will need many more VLCC's to meet her growing demand for energy.
Pakistan's proposed energy corridor might turn up feasible afterall.

Quite the reverse; once you have enough VLCC's , you dont need the pipeline. Besides, there is plenty of oil and gas in the Central Asian countries such as Kazakhstan and Turkmenistan. Isn't it a lot easier and more viable for China to import from these countries than a pipeline thru Pakistan via Gwadar? If anything, the corridor would facilitate the export from Central Asia to outside world thru Gwadar, not from AG to China.

We are still along way from buliding a gas pipeline from Iran to India, which is both technically and ecomincally viable. Lets not pin on our hopes on export to China. Peope may not be aware but China is also a producer and exports Shengli crude from the north ( Dalian region, north of Beijing). It also exports gasoline. Main imports are for the Central ( Shanghai- Hangzhou) and South (Guangzhu) industral regions. Just looking at the map is enough to validate my point. However, if one still wants to persist in the wishful thinking, it is OK with me.

 

[Bull]

Energy corridor to and from CAR and China, we're talking about multi directions here. Oil and gas will flow into China via Gwadar and CAR gas will be exported at the same time.
Western China is one of the fastest fevelopping regions in Asia and she's hungry for energy. Till now Gulf oil is shipped all the way through Melacca to Fouzhou and Shanghai where it has to travel another 5000km overland to reach western China.
For strategic region, China is willing to secure this corridor from an ally.

Are you sure, i tought the main developements are happening in eastern china.

 

[Neo]

Quite the reverse; once you have enough VLCC's , you dont need the pipeline. Besides, there is plenty of oil and gas in the Central Asian countries such as Kazakhstan and Turkmenistan. Isn't it a lot easier and more viable for China to import from these countries than a pipeline thru Pakistan via Gwadar? If anything, the corridor would facilitate the export from Central Asia to outside world thru Gwadar, not from AG to China.

We are still along way from buliding a gas pipeline from Iran to India, which is both technically and ecomincally viable. Lets not pin on our hopes on export to China. Peope may not be aware but China is also a producer and exports Shengli crude from the north ( Dalian region, north of Beijing). It also exports gasoline. Main imports are for the Central ( Shanghai- Hangzhou) and South (Guangzhu) industral regions. Just looking at the map is enough to validate my point. However, if one still wants to persist in the wishful thinking, it is OK with me.

You have a point there, but China will be the next super power and a super power can't afford to depend on on single source alone.
If Chian and India ever went to war, will Russia still be supplying?
Pakistan will provide a strategic depth and guaranteed supply of oil and gas at all times.

 

[Neo]

Are you sure, i tought the main developements are happening in eastern china.

There's 400% surge in trade and development in this region, but its still way behind Eastern China where the main core is concentrated indeed.