Gwadar - A Jewel in the Crown

[Janbaz]

Pak ports provide ideal gateway

By our correspondent

ISLAMABAD: Pakistani ports are on the worldís main oil and LNG shipping routes and provide an ideal gateway for connecting to emerging high demand in India and China. Our ports provide convenient convergence being the hub of proposed/possible oil and gas pipelines from Central African Republics (CARs).

This was stated by Munawar Baseer Ahmad, Managing Director, Sui Southern Gas Company while speaking on the topic of ‘Pakistan’s role as the South Asian Energy Corridor’. He was addressing the first working session of the 3rd Pakistan Oil and Gas Conference 2007 that commenced on February 18, 2007 in Islamabad and was inaugurated by Prime Minister Shaukat Aziz, says a press release.

The three-day event held every two years has been organised by the Petroleum Institute of Pakistan (PIP) established in July 1963 for the purpose of promoting and coordinating the activities of the Oil and Gas Industry in Pakistan.

PIP is headed by its Chairman Syed Munsif Raza who is also the Managing Director of Pakistan Petroleum Ltd.

The session was chaired by Ahmed Waqar, Federal Secretary Ministry of Petroleum and natural resources. Mukhtar Ahmed, Adviser to Prime Minister on Energy also spoke on the topic of ‘Pakistan’s energy strategy and its role in South Asia’ while dilating on adequate and affordable energy supply to meet the needs of Pakistan’s expanding economy.

He said that the present energy supply to China was through Ocean route and in case of any constraint, the supply may get disrupted. In such a scenario, the MD asserted, the proposed Energy Corridor would provide reliable, efficient and strategic mode of transportation for oil and gas ensuring supply integrity to China and India on Long Term Basis.

Earlier, Mukhtar Ahmed, Adviser to the Prime Minister on Energy started the proceedings by speaking on the issue of Pakistan’s energy strategy and its role in South Asia. He said that the security of energy supply required a balanced energy mix and maximum indigenous resource utilisation.

He added that the long-term viability of energy sector required appropriate distribution of responsibilities which included policy formulation, regulation, administration), rational industry structure in the form of Government’s ‘strategic’ presence, public-private partnership & exclusive private ownership) and sustainable pricing regime.

The News.
http://thenews.jang.com.pk/daily_detail.asp?id=43575

 

[Neo]

Gwadar to be modern city of Pakistan: Ghauri
Saturday February 17, 2007

KARACHI: Federal Minister for Ports and Shipping, Senator Babar Khan Ghauri has said that Gwadar would be the future modern city of Pakistan.

Addressing a ground-breaking ceremony of a Civic Centre in Gwadar yesterday, he said the completion of ongoing mega projects like Gwadar Port and Coastal Highway will largely contribute towards socio-economic uplift of the inhabitants of Balochistan in general and Gwadar in particular.

The Senator said banks, restaurants, decent houses, shopping centres are also being setup in the city. He said the Civic Centre, to be completed in 18 months at a cost of Rs 188 million, is a gift from the Government to the people of Gwadar.

While inaugrating a Tennis Court in Gwadar city, the Federal Minister said, " The government besides launching development projects in Balochistan is focusing on providing sports facilities to the youth of Gwadar"

http://www.paktribune.com/news/index.shtml?169283

 

[Neo]

Gwadar port to create massive job opportunities: Prime Minister

ISLAMABAD (February 24 2007): Prime Minister Shaukat Aziz on Friday said the operationalisation of Gwadar Port would generate tremendous opportunities for the people of Balochistan as thousands of jobs and new business would be created. The prime minister was talking to Balochistan Chief Minister, Jam Muhammad Yousuf, who called on him at the PM House.

Shaukat Aziz said the inauguration of Gwadar Deep-sea Port by President General Pervez Musharraf in March would fulfil another commitment of the government to the people of Balochistan and would usher in a new era of development and prosperity.

He said free economic zones to be set up near the port would help harness vast potential in natural resources of the area. He said this would also lead to development of heavy and large-scale industries, petrochemicals and manufacturing sector.

Jam Muhammad Yousuf said the people of Balochistan were highly appreciative of the initiatives undertaken by President Musharraf and Prime Minister Aziz by taking personal interest in the development and prosperity of Balochistan, which remained neglected in the past. He said Gwadar port would change fate of the area by transforming its socio-economic landscape.

The chief minister also briefed the prime minister about the law and order situation in the province and the pace of implementation of ongoing development projects. Jam also updated the prime minister about PML's enrolment drive in the province besides other party matters.

http://brecorder.com/index.php?id=531920&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

March 12, 2007
CAA denied more land for Gwadar airport

By Saleem Shahid

QUETTA, March 11: The coordination and implementation committee for development of Gwadar has decided not to provide more land to the Civil Aviation Authority for new airport in the port city as the government has already allotted required land for the purpose.

The committee at a recent meeting in Gwadar directed the Civil Aviation Authority to ensure implementation of the new airport project as soon as possible.

Balochistan Governor Owais Ahmed Ghani said that Islamabad would be requested to release required funds for the project without any delay.

Chief Minister Jam Yousuf, federal Minister for Shipping and Ports Babar Ghauri, Quetta Corps Commander Lt-Gen Hamid Rub Nawaz, provincial Finance Minister Syed Ehsan Shah, Quarter Master General Lt-Gen Mohammad Afzal, Additional Chief Secretary (planning and development) Captain (retd) Qayyum Nazar Changezi and senior officials of the civil aviation authority attended the meeting.

Officials concerned briefed the committee on implementation on the decisions of pervious meeting, construction of new airport, promotion of trade and economic activities and work on ongoing development projects.

The meeting directed the Gwadar Development Authority to prepare a building code in consultation with experts of federal institutions and private firms for the construction of quake-proof buildings and strictly implement it for the construction of multi-storey buildings.

The Gwadar Development Authority was directed that modern technology should be utilised for stopping entering of industrial and residential schemes wastes in the seawater and recycling of used water. The sanitation system should also be developed in the port city.

The implementation committee also reviewed projects regarding provision of portable water under the Gwadar Master Plan and progress on installation of desalinization plant in the city and directed departments concerned to accelerate work on the projects.The meeting also discussed progress on the construction of international standard sports complex, provision of land for proposed master plan of oil city and free trade zone in Gwadar.

The meeting expressed its satisfaction over the implementation on various ongoing development project launched under the Gwadar Master plan and observed that the city would be proved corridor of trade and economic, energy, transport and industrial activities.

Governor Owais Ahmed Ghani and Chief Minister Jam Mir Mohammad Yousuf said that all steps would be taken to ensue provision of jobs to the local people in all federal and provincial departments in Gwadar.

http://www.dawn.com/2007/03/12/top17.htm

 

[Janbaz]

No industrial plots available in Gwadar

OUR STAFF REPORTER
ISLAMABAD - “Sorry, there are no industrial plots available for the investors at Gwadar Port as the whole piece of (coveted) land has already been sold some two years ago,” officials of Gwadar Port Development Authority (GDA) told Islamabad Chamber of Commerce and Industry (ICCI) delegation.
According to a press statement issued by ICCI on Sunday, a delegation led by President ICCI Nasir Khan has visited the site of Gwadar Port to see investment opportunities there. After his return, he expressed disappointment over the allotment of industrial plots to what he called ‘non-genuine’ investors. “There is no plot left for the genuine investors,” he said.
“At Gwadar Port all industrial plots have been sold 2 years ago,” said Nasir Khan, quoting the officials of GDA.
However, he observed that there were no construction activities seen on the industrial plots as yet, only showing that the ‘non-genuine’ investors had blocked the way of genuine investors.
He said that Gawadar Port is the land of tremendous opportunity and it is very important that genuine investors be encouraged to come forward for early installation of industries.
Nasir Khan demanded that more land should be allocated for industries, so that genuine investors could invest at Gawadar, as development of a well-structured industrial estate would greatly enhance the industrial activity and generate employment for the people of that area.

The Nation.
http://www.nation.com.pk/daily/mar-2007/12/index8.php

 

[Neo]

Expatriates seek government help to set up facility at Gwadar

LAHORE (March 13 2007): The Pakistani expatriates in Japan have sought government's help for establishment of intermediary facility at Gwadar Port for the re-export of Japan-made vehicles to other parts of the world. This was stated by Shahzad Ali, head of an eight-member delegation of Pakistan Association Japan.

While talking to LCCI President Shahid Hassan Sheikh here at Lahore Chamber of Commerce and Industry (LCCI) on Monday. Provincial Secretary Commerce & Investment Saeed Ahmad Alvi was also spoke on the occasion.

Shahzad Ali said that business of used vehicles is on peak in Dubai so that Pakistanis living in Japan very much interested to make Gwadar a hub of such activity. The delegates also showed keen interest in making investment in petrochemicals and plastic raw materials, as Pakistan has no manufacturing facility in this sector so far.

They were of the view that the government should also divert its attention towards law and order situation in the country. "The land mafia in Pakistan is quite active to undo the efforts of the government which is taking steps to convert it into an investment-friendly country, they maintained. There is a dire need that government should take all necessary steps to curb these evils once for all."

The LCCI President Shahid Hassan Sheikh briefed the delegation members on investment scenario in Pakistan. Development of Gwadar Deep-Sea Port and industrial estates all over the country provide best possible infrastructure facilities to foreign investors. Road and rail linkages to neighbouring countries are the added advantages, which cannot be ignored as far as global businesses are concerned', he added. He said with the introduction of new investment policy, the foreign investors are allowed to hold 100-percent equity on industrial projects without any permission of the government. He said that it is high time for the foreign investors to take advantage of business-friendly policies of the present government.

http://brecorder.com/index.php?id=537792&currPageNo=2&query=&search=&term=&supDate=

 

[Neo]

Singapore operator to take over Gwadar Port today

KARACHI (March 14 2007): Port of Singapore Authority (PSA) will formally take over the assets and management of Gwadar Port on Wednesday to formally start its operation in the third week of March. In this regard, an eight-member team of PSA Gwadar Limited, led by Managing Director of Teh Lim Chai would arrived at Gwadar on Wednesday morning to take charge of the port premises, equipments and buildings.

Sources told Business Recorder on Tuesday that PSA Gwadar Limited would start port operations on March 20, after its formal operation commencement by President of Pakistan General Pervez Musharraf.

Sources said that the assets and equipments include two shore cranes of 40-ton capacity, one crane of 25-ton capacity, two cranes of 15-ton capacity, two Rubber Tyre Gantries (RTG), eight bagging plants, one reach stacker, two pilot boats, two tugs of 26 Bollard Pull Towage, one survey boat, one mooring boat and one working boat.

The other assets include desalination plant, control tower, office building, gatehouse, two multi-purpose berths of 602 metres length, 100 RoRo berth and 10 metres service berth and three mega watt generator with another backup generator of 450kv.

The PSA Gwadar has also ordered equipments for the handling of transshipment of containers, which would arrive at the port before August this year from Singapore. The equipment includes two Post Panamax Gantry Cranes of 45 tons capacity, four Rubber Tyre Gantries (RTGs), six tractor-trailers and one reach stacker, sources said, adding that the port equipment refurbishment is going on presently by specialised companies.

The dredging of Gwadar Port's 4.5 km approach channel has been completed in mid-February and the berth draught is 14.5 metres. The China Harbour has also deployed navigational buoys including fairway buoy. The Concession-Holder Company (CHC), PSA Gwadar Limited has been established and three separate operating companies formed which includes, PSA Gwadar Terminals Limited, Gwadar Marine Services Limited and Gwadar Free Zone Company Limited.

Sources said that the Gwadar port is ready to handle fertiliser and rice shipments for export, as proper bagging infrastructure is available at the proximity of the port. The Gwadar Port will contribute $42.2 billion, in terms of investment, revenues and income received from its entire operations to the exchequer, over a period of 40 years.

The concession agreement was inked on February 6 between the Gwadar Port Authority (GPA) representing Government of Pakistan, and the Concession-Holder Company (CHC), which is a subsidiary of PSA (Port of Singapore Authority) International PTE Limited.

The agreement has a duration of 40 years. Besides, it regulates the rights and obligations of both parties. The GPA will receive revenues (not profit) from the PSA over a period of 40 years. The investment, revenues and income received from Gwadar port's entire operations are between $23.6 billion to $42.2 billion.

Firstly, the GPA expects $5 billion to $8 billion foreign investment in the area of multi-purpose (MP) terminal and related equipment's to cost PSA at Gwadar Port which would be $1 billion to $1.5 billion; container terminal and others $2billion to $4 billion; the cost of Free Zone development $1.5 billion to 2.5 billion; while the marine services and others would cost $0.5 billion.

Secondly, the GPA is expected to receive between $17 billion and $31 billion revenues from CHC over next 40 years. The expected revenues, generated from containers and others, would be $10 billion to $18 billion. Free Zone will generate $3 billion to $6 billion; while the MP terminal and others would produce $4 billion to $8 billion revenues during the period.

Thirdly, the GPA would receive income from PSA over the period of four decades between $1.6 billion and $3.2 billion, in which the CHC of containers and others would give $0.9 billion to $1.6 billion (9 percent of CHC revenue); Free Zone $0.45 billion to $0.9 billion (15 percent of CHC revenue); and the MP terminal and others would provide $0.36 billion to $0.72 billion (9 percent of CHC revenues).

http://www.brecorder.com/index.php?id=538029&currPageNo=3&query=&search=&term=&supDate=

 

[Neo]

Gwadar airport plan to be made cost-effective

ISLAMABAD (March 15 2007): The government has decided to review the specifications of new Gwadar International Airport (NGIA) to make it cost-effective, and also to resolve the controversy over the cost of land between the Defence Ministry and Balochistan Government, sources told Business Recorder.

The issue was deliberated threadbare by the Economic Coordination Committee (ECC) of the Cabinet on February 26, which had asked Planning Commission Deputy Chairman Dr Akram Sheikh to discuss the matter with Balochistan Governor for acquisition of 6500 acres project land and submit report to Prime Minister Shaukat Aziz.

According to sources, the ECC approved some changes in the 'Memorandum of Understanding' (MoU), especially the shortening of taxiway and withdrawal of provisions for Airbus (A-380) flights. However, provision of these flights would be included in the future plan.

Sources said that Planning Commission Deputy Chairman had been asked to revise the parameters of the airport, relating to apron area and other facilities, to make the project cost-effective. "No provision was to be made at this stage for Airbus (A 380), and a modular approach will be adopted whereas space will be earmarked for future expansion," they said.

The said that the Defence Ministry had earlier submitted a summary to the ECC, seeking approval for awarding the airport project on turnkey basis to China Harbour Engineering Company (CHEC). However, the ECC in its meeting on October 31 last year gave certain guidelines and directed to re-examine the proposal for submission of updated summary to the ECC.

The matter was brought before the Executive Committee of the National Economic Council (Ecnec) which approved the PC-1 for land acquisition for the Gwadar airport with the direction that no increase in price of land and no re-alignment of coastal road should be undertaken and the issue hindering the implementation of the project should be resolved by the Chief Minister and Chief Secretary of Balochistan.

According to sources, Defence Ministry's representative explained that the MoU had been revised in consultation with the Law Division to incorporate safety/exit clauses.

The revised MoU was signed by the CAA and CHEC on January 20, 2007, sources added. It was also explained to the ECC that performance guarantee from 'A' rated bank would be included in the formal contract to be signed with the company.

Sources further said that the CAA was processing the project on modern lines, and a sum of Rs 1050 million was allocated in PSDP 2005-06 for acquisition of land at Rs 157,000 per acre, which had already been released in favour of Military Estate Officer, Quetta.

However, the acquisition of land was delayed as the Balochistan government unilaterally increased the cost of land from Rs 157,000 to Rs 350,000 per acre, besides reducing the area from 5600 acres to 4137 acres.

Balochistan government's representative said that acreage was not the issue, since sufficient land was available on east and north sides of the airport. He said that the real issue was cost of the land.

The Defence Ministry reported that there was slight re-alignment of the coastal highway and a joint survey was needed to be carried out to determine the exact alignment of the proposed coastal highway and CAA land. The issue is expected to be settled before the Cabinet meeting scheduled to be held in Gwadar on March 19, sources said.

http://brecorder.com/index.php?id=538461&currPageNo=2&query=&search=&term=&supDate=

 

[Janbaz]

Gwadar Port to be operational on March 20

ISLAMABAD (APP) - Gwadar port is expected to be operational by 20th March while Port of Singapore Authority is formally taking over the control of Gwadar Port.
An agreement as signed last month to give Gwadar Port under the control of Singapore Port, Voice of America (VOA) reported.
Gwadar port is ready to operate as the biggest port of the region. Gwadar project is an important part of the government’s development programme. A rapid progress in Balochistan, means of transportation, setting up new industries in Pakistan coastal highway are among the programme to develop Balochistan.
Gwadar Port has been given on a contract for forty years to Singapore Port Authority. Besides, the construction of berths, cargo handling equipment has been installed on the port. The government will be the share holder in the income of the port. Special flights will be started for this purpose. It is expected that Port of Singapore will invest $ 8 billion in Gwadar, VOA added.

The Nation.
http://www.nation.com.pk/daily/mar-2007/16/bnews5.php

 

[Neo]

President opens Gwadar Port, promises another at Sonmiani

GWADARMarch 20, 2007: President Pervez Musharraf officially opened the country's third port on Tuesday, at Gwadar on the Arabian Sea, and promised a fourth was on the way.

President Musharraf said Gwadar, which he opened with Chinese Minister of Communications Li Shenglin, would be a gateway for trade with Central Asia. China provided 80 percent of Gwadar's $248 million initial development costs.

"Gwadar will become an industrial hub, energy corridor and container centre ... The area will become a hub and trade corridor for the whole region in a few years," President Musharraf told a public gathering.

Conceived over a decade ago, Pakistan hopes Gwadar, 70 km (45 miles) east of the Iranian border and on the doorstep of Gulf shipping lanes, will handle trans-shipment traffic for the Gulf and ports on the Arabian Peninsula.

In February, Singapore port operator PSA International took over management control of the port for 40 years.

Pakistan is keen to become a conduit for trade to landlocked Afghanistan and Central Asia and now has three major ports -- Gwadar in Balochistan province and two at Karachi, 450 km (280 miles) to the east.

The country's fourth port will be built at Sonmiani, 160 km (100 miles) to the west of Karachi, also in Balochistan.

"The foundation stone for this port will be laid this year," the president said, giving no further details.

Security was tight around Gwadar for the opening ceremony, with thousands of soldiers and police guarding roads and fishermen ordered to stay well clear.

"THROW DOWN YOUR WEAPONS"

Balochistan has been plagued for decades by a low-level insurgency by tribals seeking autonomy and control of gas and mineral resources.

Balochistan has the country's largest gas reserves and is rich in minerals, including copper and uranium.

Militants often attack pipelines, power transmission cables, railway tracks, buses and military and government installations.

They also opposed construction of the port and claimed responsibility for a bomb attack in 2004 that killed three Chinese technicians and wounded nine.

President Musharraf, who has announced plans for major infrastructure projects to win the support of the province's people, said the feudal ways of Balochistan's tribal chieftains had contributed to its underdevelopment.

"Those are the people who want to suppress you and don't want to see a developed Balochistan," the president said.

He called on the militants to put down their weapons and not stand in the way of development, or they would face tough action.

"I warn these elements that they have no future, they will be eliminated," he said.

http://brecorder.com
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[Neo]

'Gwadar port to change fate of Balochistan'

ISLAMABAD (March 20 2007): Pakistan's first deep seaport, Gwadar would become functional in a next few days, and would change the fate of the area by transforming its socio-economic landscape. Gwadar Port would generate tremendous opportunities for the people of Balochistan as thousands of jobs and new business will be created by it, PTV reported.

It would fulfil another commitment of the government to the people of Balochistan and would usher in a new era of development and prosperity.

Free economic zones would be set up near the port which would help harness vast potential in natural resources of the area.

This port would also lead to the development of heavy and large-scale industries, petrochemicals and manufacturing sector. Pakistan has already strategically located and this seaport has increased this importance and would make the access to the Central Asian States easier.

Singapore Port Authority, which would look after Gwadar, port for 25 years is running ports in almost 9 countries and would invest almost 3 billion dollars for the development of this port.

This port had been declared tax-free for 40 years and it is estimated that almost 50 million-ton cargo would go through this port in next 10-15 years. It is almost 14.5 m deep and was completed with the cooperation of China in record time period of three years and costs almost Rs 16 billion.

As soon as it becomes functional, it would give boost to the economy of the country and Pakistan would become the economical and trade hub of the region. The people of Balochistan are highly appreciative of the initiatives undertaken by government for the development and prosperity of Balochistan, which remained neglected in the past.

http://brecorder.com/index.php?id=540853&currPageNo=2&query=&search=&term=&supDate=

 

[Neo]

Prime Minister opens Rs 1.2 billion desalination plant

GWADAR (March 20 2007): Prime Minister Shaukat Aziz performed the inauguration of 200,000 gallons per day desalination plant costing Rs 1.2 billion in the coastal city of Gwadar on Monday. Speaking on the occasion he termed this as a historic occasion and said it was an excellent example of public-private partnership.

This is one of the first desalination plants going operational in the country. It had been entirely funded by the private sector, he said. The prime minister said the developments in Gwadar, where the deep-sea port would become operational from Tuesday and other projects in line, would change the destiny of this city, province of Balochistan and that of Pakistan.

He declared that the provision of fresh drinking water was a major priority of the government, adding the government was undertaking a massive programme of billions of rupees for providing water to the masses and filter plants were being established across the country.

He pointed out that with the development projects being undertaken Gwadar's significance would enhance even more in the years to come.

Shaukat Aziz also highlighted the significance of the Coastal Highway, which was as important as the Gwadar Port. He said this highway was being further extended to be linked up with the Iranian Border in the town of Gabd from where it would be connected with the Iranian Highway and one would be able to drive to Bandar Abbas or any place in Iran and beyond to Europe.

He said that Gabd would become a big hub for road transport between Iran and Pakistan. The prime minister said the Coastal Highway, the Port and development of the city of Gwadar and linking this highway to Iran would change the dimension and economic potential of this whole area.

He said: "Today is also a historic day because for the first time in the history of this Cabinet we are having a Cabinet meeting outside Islamabad."

The prime minister said when the new airport in Gwadar for which we are acquiring land is built it will further become a hub to provide link with the rest of the world. He said our policy is to make Gwadar airport an open sky where anybody can land and take off with no restrictions.

He said that there would also be an industrial estate in Gwadar, which would be very attractive and have state of the art facility and it would have many incentives because we want many local and foreign investors to come here in a big way.

Shaukat Aziz said we see Gwadar as a hub to trade with Central Asia and with the road network we will also connect Gwadar with up North by connection with the Indus Highway, Quetta and National Highway and work on this is going on step by step.

He said the credit for the development plans goes to President Pervez Musharraf and we all worked with him as this will change the future of this city, the province of Balochistan and of Pakistan.

http://brecorder.com/index.php?id=540747&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

Gwadar port to prove economical jugular vein: Ghauri

ISLAMABAD (March 21 2007): Federal Minister for Ports and Shipping Babar Khan Ghauri has said that Gwadar Port will open the new doors to boost the trade activities in the region. Talking to Voice of Germany (VOG), he said after its inauguration the port will become operational. The port will prove the jugular vein of Pakistan's economy.

It will start doing business from the very first year of its operation, he added. Talking to a TV programme, MD General Shipping Agencies Muhammad A Rajpar has said Gwadar Port is ready to operate as the biggest port of the region and is an important part of the government's development programme.

In the first phase, their target would be transshipment cargo and in the second phase, when there would be facility of road and railway network, then they would be able to deal with transit cargo, he said. Means of transportation, setting up new industries in Gwadar and coastal highway are among the programmes to develop Balochistan, he said and added Gwadar is one of the important milestones of Pakistan.

The depth of Gwadar Port is 14.5 m which is very rare in the entire region, he added. The MD said many development projects are in the pipeline in Gwadar like construction of new airport, industrial zone. Besides this, the builders from across the country are shifting to Gwadar for investing there.

Rajpar said besides sale of commercial plots in Gwadar, there are many applications under consideration and the government is considering expanding the industrial zone. With the establishment of the industrial zone in Gwadar, numerous people would get employment and one can foresee how much the economy of the country would get boost, he added.

He said many housing schemes are operative in Gwadar and all the facilities including cellular network, are available the area. Another guest of the show, Senior Journalist Chisti Mujahid observed that Gwadar Port is attracting the investors and it is manifest from the fact that all the commercial plots were sold and almost 15,000 industrial units would be established there.

He said as soon as the Gwadar Port became operational, Pakistan would become the trade hub in the entire region, which would bring about economic revolution in the country. He said it would generate job opportunities for thousands of people and would not only be used for trade purposes but would also serve for the import and export of oil purposes.

For this purpose, an oil terminal would be constructed in Gwadar in the next phase, he added. Not only Pakistan but also the neighbouring countries would also be facilitated with this seaport, he said and added Gwadar port is included in one of the mega projects of Pakistan which would change the fate of Balochistan as well the entire country. This historic step by President Musharraf would change the destiny of Pakistan, he added.

Mujahid said the importance of this port is manifest from the fact that before the formal inauguration of this deep port, two ships had already anchored there. Besides the construction of berths, cargo-handling equipment has been installed on the port. It is expected that Port of Singapore will invest eight billion dollars in Gwadar, he said.

http://brecorder.com/index.php?id=541206&currPageNo=3&query=&search=&term=&supDate=

 

[Neo]

Gwadar Port set to become key Pak and global strategic hub
South East Asia News.Net
Friday 23rd March, 2007

Karachi, Mar.23 : Gwadar, located on the southwestern coast of Pakistan, was just a small fishing hamlet at one time, but now is set to become not only a hub of shipping and commercial and industrial activities, but also a key geo-strategic location.

Located close to the Strait of Hormuz in the Persian Gulf through which over 13 million barrels of oil pass every day, this coastal town located at the intersection of oil-rich Middle East, South Asia where one-fifth of the world's population lives and Central Asian Republics (CARs) having vast reserves of oil and minerals, is also likely to emerge as the country's most strategically-located deep-sea port.

Gwadar port, the third deep-sea port of Pakistan, may not seem to be of use to Pakistan as there is no need of a feeder port in Balochistan, yet it will have global ramifications.

Countries like Russia and China will find this port of great importance to their futuristic needs as both have so far been unsuccessful in establishing ports in hot waters.

China's decision to finance the construction of the Gwadar port and the coastal highway linking the port to Karachi will help its plans to develop western China. The distance from Kashgar to the Chinese east coast ports is 3,500 km, whereas the distance from Kashgar to Gwadar is only 1,500 km. The cost benefits to China of using Gwadar as the port for western China's imports and exports are evident.

China has no blue water navy and feels defenceless in the Persian Gulf against any hostile action to choke off its energy supplies. To cope with the new challenges, the Chinese leadership envisaged a new plan that was called by the US as "assembling a string of pearls".

Besides Gwadar, this string includes Chittagong of Bangladesh in the Bay of Bengal and Myanmar in the Indian Ocean. China has helped build the Chittagong port in Bangladesh where it is seeking an extensive naval and commercial access. In the case of Myanwar, Beijing has showered billions of dollars in military aid.

It has provided support for building several ports, road and rail links from the Chinese province of Yunnan to the Bay of Bengal, and a monitoring post on Myanmar's Coco Islands for sea traffic.

The new Chinese plans have rung alarm bells in India and the US too. India feels that it is encircled by China from three sides - Myanmar, Tibet and Pakistan. To counter Sino-Pak collaboration, India has brought Afghanistan and Iran into an economic and strategic alliance.

Following the Chinese ambitions in the region, India has pursued closer military ties with the US and issued a new naval doctrine stressing the need of protecting energy routes and responding to Beijing's inroads into the Arabian Sea.

To counter the Gwadar port that is also called the Chinese Gibraltar by Washington, India has built Chabahar port in Sistan-Balochistan province of Iran - just adjacent to Gwadar. India is also helping Iran in building a 200km road that will connect Chabahar with Afghanistan. It will provide access via land to the port for their imports and exports to and from Central Asia. Presently, India is in urgent need of a shorter transit route to quickly ship its trade goods to Afghanistan and Central Asia.

Despite the fact that the Gwadar port is meeting Chinese purposes, the US has not objected to building the sea port. President Bush sees Gwadar as an advantage rather than a threat. He is confident that Pakistan will not allow the Chinese Navy to block US trade goods on the route and inside sources believe Musharraf has made some promises in that regard.

http://www.southeastasianews.net/story/236452

 

[Neo]

March 26, 2007
Gwadar port and the local participation

By Syed Fazl-e-Haider

AFTER the inauguration of the Gwadar seaport by President General Pervez Musharraf, the Port of Singapore Authority (PSA) has begun its operations. Addressing a gathering of local people, the president also announced Rs10 million for education, health and sewerage schemes and a 'Marine College' to be built in the port city.

As a ‘mega magnet’, Gawadar will attract businessmen, skilled and unskilledworkers from other three provinces and abroad. This will result in an influx of outsiders into the sparsely populated province. The grandiose schemes and projects that have been announced will need at least one million people. Gwadar has now a population of nearly 60,000.

But there are no two opinions that the port would contribute to the provincial economy and living standards of the local people would also improve. Yet the concerns of the local population needs to addressed expeditiously to remove all kinds of apprehensions.

The locals fear a change in demography of the province through a large-scale influx of outsiders. They are concerned that they would become a minority in their own province. The nationalist parties also fear that the natural resources of the province would go under the control of outsiders.

Many point out the “disconnect” between a modern city port of Karachi and Sindh’s rural hinterland- the striking contrast between the relative affluence and stark poverty. Similarly, with the development of Gwadar as regional trade hub, there would develop a disparity in incomes between Gwadar and the rest of the districts in the province. In order to cope with such a future scenario of economic inequities, there is an urgent need to establish small and medium industrial enterprises in other parts of the province also. And more important, there is need to impart trade skills to the localpeople to help them join the mainstream economic activities.

Gwadar port will open up the hinterland. The770 km long coastal belt extends from the mouth of Hub River near Karachi right up to Gwadar Bay near Chahbahar in Iran. The port would help bring Balochistan's coastal areas into the socio-economic mainstream and will serve as a catalyst for fast track development of the province. The establishment of special economic zone, free trade zone, and export processing zone (EPZ) would attract foeignl investment.

Development of an integrated transport system-road and rail links to CARs and rest of the country- will enhance the local peoples’ access to new avenues for their development and prosperity. For landlocked Central Asian economies, Balochistan offers access to new resources and markets and the prospect of more rapid growth.

Gwadar port would provide Afghanistan and the CARs the shortest and fastest access to the warm waters of the Arabian Sea. Any movement of goods to and from the province will benefit Afghan transit trade. It will also increase the export of minerals, dry fruit and other goods from the province. But much would depend on how fast the situation in Afghanistan is normalised..

The people of Mekran who are associated with fishing and agriculture, especially growing of dates will have access to easier transportation for date export to foreign markets.

The local people are concerned over land ownership in Gwadar as stories circulate about the poor being deprived of their land for a song. Many believe that the government should allow leasing rather than outright sale of the land, with rentals flowing to the local people.

UAE is an example where the local population can be seen enjoying the real estate boom due to the business receiving a boost after arrival of investors and corporates from different parts of the world.

Not to ignore the sentiments of the local population, the government needs to develop low cost housing scheme with all civic facilities . This uplift in their living standard would help in winning their confidence and making them partners in the development of the province.

According to officials, Mekran coastal highway is being extended up to Iranian border. The highway, linking Karachi on the east with Jiwani to the west, close to the Iranian border, has been completed at a cost of Rs10 billion. The coastal highway will ultimately link Karachi with Iran and thus open a new and shorter trade route between the two countries. The coastal highway leading to the Iranian border would also help increase Pakistan's trade with Iran and the region.

There is a dire need for qualified and professional port staff for successful marketing of the port management to potential customers, building of export processing zone, trans shipment and warehousing facilities, fixing of port tariffs for shipping companies.. Can Balochistan provide the required human resources? Locals fear that government could use the pretext of technological backwardness of the people justifying the recruitment and appointment of outsiders in different capacities in the port-related projects.

The technological backwardness in Balochistan is likely to go against the interest of local people .The ground realities call for a rational and long-term planning for development of human resources. Creating technical hands and building capacities among local people would be a great service to the people of this backward province.

In June 2005, the Parliamentary Committee on Balochistan had approved the recommendations of its sub-committee on ‘Balochistan Current Issues’ headed by Senator Mushahid Hussain Syed. The committee’s development and incentive package for Gwadar included the following recommendations:

* fishermen disturbed because of the construction of the Gwadar port would be relocated and given compensation;.

* 5.4 per cent of Balochistan’s quota in the federal government jobs, agreed to after 1998 census, would be implemented. In the job quota, people of Gwadar would be at the top of priority followed by Mekran and then the rest of Balochistan;

* the chief justice of the Balochistan High Court would be asked to investigate the alleged irregularities in the sale of land in Gwadar;

* settlers in Gwadar would have the right to vote in local polls only and

not in elections to the provincial and national assemblies;

* only Baloch citizens would be appointed heads of the Gwadar Port Authority and the Gwadar Development Authority;

* sixty per cent of the members of the Board of Governors of the Gwadar Authority would be residents of Balochistan.

http://www.dawn.com/2007/03/26/ebr8.htm