GWADAR TRADE LINKAGES AND POSSIBILITIES
With the expected completion of Makran Coastal Highway portion from Gwadar to Gabd (N-10) with a distance of only about a hundred and fifty kilometers, which has been substantially constructed according to National Highway Authority (NHA) website, linking Gwadar to the Iranian road network, the huge potential of the Port and the Coastal Highway would be utilized within a few months.
On the other side of the Iranian border is the port of Chahbahar, which is linked on one side to Bander Abbas by road and from there to the Iranian Rail network. The other road from Chahbahar currently used for Indian exports to Afghanistan goes through Iranshahr to Zahedan and onwards to Zabol on the Iranian border and to Zaranj in the Afghan Province of Nimroz. The Iranians are providing huge storage facilities at Chahbahar port. Company formation laws have also been simplified by the Iranian government for Chahbahar.
The Gwadar Port could be made economical by using the Iranian Road network as an alternative route for the Afghan Transit Trade. The Indians are already using this road for exports to Afghanistan.
The twenty year old dream of Central Asian trade would come true by providing Transit Trade facilities to Turkmenistan using the Iranian road and rail network which is already connected through Mashad to Turkmenistan. In addition to that, we can provide the same facilities to the other Central Asian Republics like Uzbekistan through Turkmenistan for their exports to the Far East and Palm Oil exports from Indonesia and Malaysia to Central Asia. We can also import Central Asian Cotton and export Leather garments to them.
With the law and order situation in Afghanistan at its worst point we should switch over to the Iranian route for the time being for Central Asian trade. Last month a goods train was sent to Turkey through Iran from Islamabad for the first time in Pakistans history. In the same manner, Iranian and Turkish goods could be imported by Train to Quetta for onwards shipment to Sindh, Punjab and Frontier; and to Bander Abbas by Train and then by road to Gwadar for onwards shipment to Karachi through the Coastal Highway.
There is a huge demand for Pakistani Irri and Basmati Rice in Iran. On the other hand the Iranians have a developed canned vegetable, dry fruit and plastics industry. At present, in specific seasons, fresh vegetables are being imported to Makran from Iran. In addition to that, we can import oil because the Iranians have very little refining facilities. Dates are also be imported from Iran. Pakistan Horticultural Development & Export Board (PHDEB) has also started construction of date processing plant at Turbat with annual capacity of 2400 metric tons.
Turkey has a developed industrial sector and we can import good quality machinery and parts based on European technology from there. During the 2005 earthquake, the relief aid from Turkey came through the Iranian road network on trailers.
Pakistan would benefit from the cheap imports and it can tap these markets for export. It would also earn revenues from the customs duties at Gabd Border and Gwadar Port.
Recently, when a ship offloaded its cargo at Gwadar port, empty trucks had to be brought in from Karachi because there was nothing to take to Gwadar and only one way cargo of wheat from Gwadar, thus doubling the rent of the trucks. If the Iranian land trade route is opened, a transport hub would naturally be formed at Gwadar, thus decreasing the cost of doing imports at Gwadar port and providing business opportunity to the local transporters and many allied services.
It should be borne in mind that these Baloch areas bordering Iran have very little agriculture and any other forms of economic activities. Cheap electricity can be also provided to these areas from Iran. If the border trade is liberalized for the districts of Balochistan adjoining Iran, by connecting the road networks at various points, in addition to the customs check post at Mand, then the economic hardships of the people of those areas would decrease as they will get cheap food stuffs and other commodities and the resentment against the federal government would decrease.
