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Wen Visits Pakistan to Revive Road-Rail Network From China to Persian Gulf
By Khurrum Anis and James Rupert - Dec 17, 2010 7:48 AM GMT+0500
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Wen Jiabao, China's prime minister, seen here in New Delhi, India, yesterday, travels to Pakistan today. Photographer: Pankaj Nangia/Bloomberg
Chinese Premier Wen Jiabao travels to Pakistan today for a visit that officials say may revive a planned road-rail network linking China to the Persian Gulf.
Pakistan also hopes to sign business agreements valued at $20 billion with executives from companies traveling with Wen, Defense Minister Chaudhary Mukhtar Ahmed, said yesterday.
Wen and Prime Minister Yousuf Raza Gilani will meet today to discuss how to make the Chinese-built port of Gwadar operational, Gilani told journalists on Dec. 15, according to the state-run Associated Press of Pakistan. The port, which lacks a rail or multi-lane highway link to the rest of Pakistan, is envisioned as the terminus of a transport corridor that would carry Middle Eastern oil and other goods to western China.
Chinese engineers have finished a feasibility study for a railroad and pipeline from Gwadar to the western Chinese city of Kashgar. It would follow the route of the China-built Karakoram Highway, a Chinese specialist on Pakistan, Li Xiguang, wrote on Dec. 14 in the Global Times, an English-language website controlled by the ruling Communist Party’s official newspaper.
A transport corridor to Gwadar “will provide China with the shortest possible route to the oil-rich Middle East, replacing the dangerous maritime route” around Southeast Asia, Li wrote.
Gwadar is currently connected to the business hub of Karachi and the rest of Pakistan by a 450-kilometer (280-mile) road, most of it two lanes, that has suffered repeated flood damage in recent years. “Poor road connectivity” limits its traffic to no more than three ships at a time, said Faisal Jawaid of port operator PSA Gwadar Ltd., a unit of Singapore- based PSA International.
India Leg
Wen will fly to Pakistan from New Delhi, where he and Indian Prime Minister Manmohan Singh agreed yesterday to boost bilateral trade by two-thirds to $100 billion by 2015. The two leaders omitted any mention of tensions between their countries over China’s close ties with Pakistan, with which India has fought three wars, two of them over the disputed territory of Kashmir.
Gilani told reporters that Pakistan faces no threat from the growing China-India relationship, the APP said. Pakistan’s President Asif Ali Zardari has been a regular traveler to China since heading there for his first state visit after being elected in September 2008.
Reactor Concern
The budding bilateral relationship has triggered U.S. concern over China’s plan to add two nuclear reactors to a power-plant complex in Pakistan’s Punjab province. The U.S. has said China should get approval from the 46-country Nuclear Suppliers’ Group, which works to avoid the uncontrolled spread of nuclear technology.
Pakistan may seek Chinese investment in five state-owned enterprises and offer to host an electric-car manufacturing plant, its industries ministry said in an e-mailed statement yesterday. “Some of the areas of investment include steel, automobile, electronics and domestic appliances,” it said
The ministry said it hopes Chinese businesses may put money into Heavy Mechanical Complex Ltd., a builder of armored vehicles for Pakistan’s military based in Taxila, near Islamabad, the Haripur-based Heavy Electrical Complex Ltd., and the Pakistan Machine Tool Factory and Pakistan Engineering Co. Ltd., which are both based in Karachi.
Wen will lay the ground for the opening of a branch of the Industrial and Commercial Bank of China, Li wrote. He is also set to address Pakistan’s National Assembly.
To contact the reporter on this story: James Rupert in New Delhi at jrupert3@bloomberg.net; Khurrum Anis in Karachi, Pakistan kkhan14@bloomberg.net
To contact the editor responsible for this story: Bill Austin at billaustin@bloomberg.net,
Wen Visits Pakistan to Revive Road-Rail Network From China to Persian Gulf - Bloomberg
By Khurrum Anis and James Rupert - Dec 17, 2010 7:48 AM GMT+0500
inShare
More Print Email
Wen Jiabao, China's prime minister, seen here in New Delhi, India, yesterday, travels to Pakistan today. Photographer: Pankaj Nangia/Bloomberg
Chinese Premier Wen Jiabao travels to Pakistan today for a visit that officials say may revive a planned road-rail network linking China to the Persian Gulf.
Pakistan also hopes to sign business agreements valued at $20 billion with executives from companies traveling with Wen, Defense Minister Chaudhary Mukhtar Ahmed, said yesterday.
Wen and Prime Minister Yousuf Raza Gilani will meet today to discuss how to make the Chinese-built port of Gwadar operational, Gilani told journalists on Dec. 15, according to the state-run Associated Press of Pakistan. The port, which lacks a rail or multi-lane highway link to the rest of Pakistan, is envisioned as the terminus of a transport corridor that would carry Middle Eastern oil and other goods to western China.
Chinese engineers have finished a feasibility study for a railroad and pipeline from Gwadar to the western Chinese city of Kashgar. It would follow the route of the China-built Karakoram Highway, a Chinese specialist on Pakistan, Li Xiguang, wrote on Dec. 14 in the Global Times, an English-language website controlled by the ruling Communist Party’s official newspaper.
A transport corridor to Gwadar “will provide China with the shortest possible route to the oil-rich Middle East, replacing the dangerous maritime route” around Southeast Asia, Li wrote.
Gwadar is currently connected to the business hub of Karachi and the rest of Pakistan by a 450-kilometer (280-mile) road, most of it two lanes, that has suffered repeated flood damage in recent years. “Poor road connectivity” limits its traffic to no more than three ships at a time, said Faisal Jawaid of port operator PSA Gwadar Ltd., a unit of Singapore- based PSA International.
India Leg
Wen will fly to Pakistan from New Delhi, where he and Indian Prime Minister Manmohan Singh agreed yesterday to boost bilateral trade by two-thirds to $100 billion by 2015. The two leaders omitted any mention of tensions between their countries over China’s close ties with Pakistan, with which India has fought three wars, two of them over the disputed territory of Kashmir.
Gilani told reporters that Pakistan faces no threat from the growing China-India relationship, the APP said. Pakistan’s President Asif Ali Zardari has been a regular traveler to China since heading there for his first state visit after being elected in September 2008.
Reactor Concern
The budding bilateral relationship has triggered U.S. concern over China’s plan to add two nuclear reactors to a power-plant complex in Pakistan’s Punjab province. The U.S. has said China should get approval from the 46-country Nuclear Suppliers’ Group, which works to avoid the uncontrolled spread of nuclear technology.
Pakistan may seek Chinese investment in five state-owned enterprises and offer to host an electric-car manufacturing plant, its industries ministry said in an e-mailed statement yesterday. “Some of the areas of investment include steel, automobile, electronics and domestic appliances,” it said
The ministry said it hopes Chinese businesses may put money into Heavy Mechanical Complex Ltd., a builder of armored vehicles for Pakistan’s military based in Taxila, near Islamabad, the Haripur-based Heavy Electrical Complex Ltd., and the Pakistan Machine Tool Factory and Pakistan Engineering Co. Ltd., which are both based in Karachi.
Wen will lay the ground for the opening of a branch of the Industrial and Commercial Bank of China, Li wrote. He is also set to address Pakistan’s National Assembly.
To contact the reporter on this story: James Rupert in New Delhi at jrupert3@bloomberg.net; Khurrum Anis in Karachi, Pakistan kkhan14@bloomberg.net
To contact the editor responsible for this story: Bill Austin at billaustin@bloomberg.net,
Wen Visits Pakistan to Revive Road-Rail Network From China to Persian Gulf - Bloomberg