GAWDAR PORT; A project of great economic potential
By Parveen Zaiby
Gwadar is a district of Balochistan, situated at a distance of about 750 KM from Karachi . Geographically it enjoys a significant position with Gulf next to it. Although, it has been neglected in the past, but its 600 km long coastline has put its importance right at the top and people with futuristic approach see it developing into one of the most modern and beautiful ports of the world. The government has declared it a "˜free' port. One of the very important factors about it is that it is a deep seaport. It is worth mentioning here, that not all of the seaports are deep seaports.
Gwadar Port is a major step towards country's economic growth and betterment of Balochistan. It is also important due to its location on world three key points Middle East South Asia and central Asian states. It will surely serve as the most crucial business and economic link between Pakistan and Afghanistan . A modern deep-sea port like Gwadar with adequate communication links and ancillary facilities would be a preferred transit destination for many Asian, African and Pacific countries. Pakistan would also supplement development affairs of the SAARC countries by providing the transit route to the SAARC countries.
Gwadar Port is being considered a future-trading hub in the region, because of its key location in the Gulf. Initially, the port will face competition from Port Salah of Oman and Port Chah Bahar of Iran . Actually, India sees Chahbahar port facilities as her main entry point for energy and commercial trade with Afghanistan , Central Asia , and the Caspian region. Both the ports would emerge as strategic competitors in the region. Moreover, it lies just 624 nautical km to the east of the straits of Hormuz through which 40 percent of the world's oil passes. Although, the Gulf was to be considered one of the best zones for trade and business till now, but the rapidly changing political conditions in Afghanistan , Iraq and specially Middle East has created an air of uncertainty, of its future, in the minds of business community.
The business community in the Gulf has already started exploring new horizons for future trade and investment because technically, Gawadar will affect the economy of more than 30 countries. The imports and exports of China , Middle East, Central Asian States , Europe and Africa could be transported in days rather than months and would be very economical. Gawadar is being developed to replace trade cities like Dubai , Singapore and Hong Kong .
Chinese participation
At present different Chinese firms and the engineers are engaged in developing key sectors. The port will serve as an entry point for oil and gas to be transported by land to the Western regions of China .
China will build a refinery that will have a capacity of 60,000 barrels per day refining capacity. Furthermore, China may dock its naval ships in or around Gwadar with permission from Pakistan . This has caused concern by both USA and India , both do not wish to see the presence because province Xinjiang, is only 25000 km from Gwadar port, which makes it feasible and cost-effective for China to carry out trade through this port. Washington too perceives China 's involvement as a threat to its fleet in the gulf, as Gwadar provides a strategic base for countering US influence in the region. Also is planned a multimillion dollar TAP gas pipeline about 1,700 km up to Gwadar which would serve the world markets
The transitional gas pipeline plan between Pakistan, Iran, India and Turkmenistan and Afghanistan will pass through this route. It will also serve as mother port in the region to import crude oil. GTL/LNG processing and then shifting to Middle East, China and North American markets. India wants Balochistan as a transit point for the $7 billion Iran-Pakistan- India gas pipeline. Due to geo-strategic location, Gwadar provides easy excess to-and-from this port. It offers great opportunities for local and foreign investments.
Construction of the first phase of the deep seaport has been completed in collaboration with China with a cost of $300 million and Pakistan has spent an amount of more than 2 billion dollars to upgrade the port and many other development programmes in the region in last 2 years, and the provincial government is spending 4.5 billion rupees in support of development in the area. It will be an economic hub and trade centre in the region in the coming days.
But after completion of second phase by 2010, which would cost $865 million. It is likely to be one of the busiest ports in the region that will provide warehousing, trans-shipment and industrial facilities for trade to over 20 countries which includes Gulf States , Central Asian Republics , Iran , East Africa, China and India .
In the third phase, a shipyard would be set up, where latest fishing boats would be manufactured and handed over to local fisherman on lease. Local fisherman would be imparted training, latest techniques of fishing. Besides this processing unit will be established so that fish could be exported to Gulf States , and European markets, fresh fish would also be exported directly through planes after processing. This move would prove a milestone in alleviation of prevailing unemployment in the coastal areas and generate revenue for the government.
The development process in Gwadar is rapidly progressing and the government' s approach in this endeavour is highly commendable. The government has initiated various projects with financial and technical assistance to develop Gwadar. This would enable high volume cargo movement to and from the landlocked Central Asian states.
Gwadar in real sense is a major trade link to the world and thus the government is going ahead with interlinked development plans like Makaran Costal Highway , Gwadar, Quetta Zahidan railway track, 132 KV electricity line, an international airport, Ankara and Meerani dams.
Gwadar is also ideally suited for residential and investment purposes. In order to ensure the quality of the city, a competent authority, GDA has been formed. No development project can be carried out without obtaining NOC from GDA. The GDA makes sure that the quality is implemented through out the construction and development of the projects.
Gwadar is being developed on a scale where it could match the international standards. Every possible measure is being implemented to make sure that the commercial and residential facilities are made available. According to the master plan, over the east bay, an area of 1000 acres has been allotted for deep seaport, 1000 acres for tax-free industrial zone and 2500 acres for oil refineries. Over the west bay, an area of 18000 acres has been reserved for residential purpose. On the beach, 164 and 200 ft wide roads have been planned.
The prestigious Gwadar Port will highly facilitate the port and shipping sector of the country. It will also provide a multi-directional network of road communication within and outside the country. The development of railroad and sea communication originating from Gwadar in all direction is expected to generate tremendous economic activities in the areas, are under process. On completion, it would help reducing congestion at Port Qasim.
Investment and business
The basic infrastructure to provide telephone connections to government and businesses in Gwadar has been established and initially an exchange of 500 lines has been set up in the area. The government is also establishing export processing zone (EPZ) on a 10000 acre for better business opportunities to investors. Also, the government has announced special incentives for industrialist, exporters and importers in the EPZ aimed at encouraging them.
The potential business areas identified presently are fish/crabs processing, cold storage systems, ice factories, desalination plants, shrimp farming, training services in fisheries and aquaculture and port management projects.
The oil rich Middle East and heavily populated south Asia, and the economically emerging and recourse-rich Central Asia - will benefit heavily from this port. A chain of warm water ports on the mouth of the Persian Gulf along with modern transport and communication facilities would make Pakistan a huge business hub in the 21st century. This is why the deep-sea port of Gwadar is already attracting global attention. After it is fully developed with all supporting facilities Gwadar will become one of the important gateway to prosperity for Pakistan and its people. The SAARC countries may also reap huge economic benefits. The port is also an emerging link between East and West that will change the fate of Pakistan 's economy.
In a nutshell Gwadar project on its completion would usher a new era of development and economic prosperity in the region.
It is estimated that Pakistan would earn $60 billion per year on transaction of trade after completion of Gwadar Port. However, no date has yet been fixed for its formal inauguration. Before its operation, the government would have to improve law and order situation as soon as possible for the port operation to begin smoothly and businesses by investors at domestic and international level find it easy to make the best of the opportunity offered to them by this port. It is hoped that the port would be operational before the end of this year.
http://jang.com.pk/thenews/nov2006-weekly/
|