Name: Wafa Tariq Bahria University BBA 6-E ms.wafa.tariq@gmail.

com
Name: Wafa Tariq
Email Address: ms.wafa.tariq@gmail.com

Business Potentials of Gwadar Port
Gwadar port lies at the south-west coast of Baluchistan province. It is a port which is near to many
wealthy countries such as United Arab Emirates and Oman. It has been a part of our country since 1958
but no significance was given to it as Pakistan is already blessed with two ports- Port Qasim and Karachi
Port but due to the up growing problems of these ports, Gwadar port has showed the capacity to cope
up the growing demand resulting to be a third seaport for Pakistan.
Gwadar has an immense potential for attracting both domestic and international tourist with a unique
landscape. The mud hillock, the God gifted landscape looks as if carved by an artist. The two hammer
heads of Gwadar and CMara are matchless. The turquoise sea water with golden sand beaches facing
south is unparalleled. The beaches can be used throughout the year.
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Cwadar ls 8aluchlsLans chance to come out of the typical feudalism and a primitive, caveman mindset.
It can turn out to be important step. If it wants to make 6 million residents of that city introduced to
others, it has to be properly fed and raised up. It is like a new baby right now. Proper take care of this
place can bring revolutionary changes to our economy. The development of this port would not only stir
the economy of Pakistan but can also support other development initiatives.
Gwadar port has gained attention of many countries in terms of business and social relations due to its
prime location close to Strait of Hormuz which joins the Persian Gulf and Gulf Of Oman. Strait of Hormuz

1
Gwadar- The future of Pakistan
http://www.pakboi.gov.pk/index.php?option=com_content&view=article&id=626:gwadar-the-future-of-
pakistan&catid=44:latest-news&Itemid=310
Name: Wafa Tariq Bahria University BBA 6-E ms.wafa.tariq@gmail.com
is a passage through which Worlds oll LranslLs occurs. If this port is taken care and exploited to its
extent, it can become the most important port for the Middle East and for the Asia region. It would
connect the Great Asian Dragon (China) with the Oil-rich Arabs.
ln aklsLanl research arLlcle Cwadar ueep ea orLs Lmergence as 1rade and LransporLaLlon Pub"
Zahid Anwar highlighted the forecasted problems and the potential benefits likely to be come up with
Lhe exlsLence of Cwadar orL. Pe polnLed ouL LhaL Lhls porL wlll reduce aklsLans dependency on wesL
and it will provide a new horizon for Middle East and Central Asian resources.
The Government has offered many housing schemes which have been attracting a large number of
foreign and domestic investments toward its development and infrastructure projects. It has given boost
to many profitable and lucrative investments. The view and location of Gwadar Port has brightened the
investment possibilities in Gwadar real estates.
Some big investors have entered the Gwadar real estate market offering housing schemes for small and
medium enterprise. We are expecLlng mlnlmum four Lo slx Llme hlgh premlum by lnvesLlng 8s40 mllllon
on Cwadar land," sald an owner of houslng schemes on Lhe condlLlon of anonymlLy, addlng: 1he splral
in real estate value would emerge and the demand and prices of property substantially would shoot up
wlLh passage of Llme."
2

Gwadar port has opened many new horizons for the unemployed people and has built many job
opportunities. The establishment of local industries and attraction to foreign investors has made it easy
to have developments in every field. This development requires new techniques and resources which in
turn makes new job opportunities.

2
Defense Pakistan- http://www.defence.pk/forums/economy-development/1232-gwadar-jewel-crown-
9.html#ixzz2KnT1nXSm
Name: Wafa Tariq Bahria University BBA 6-E ms.wafa.tariq@gmail.com
Trade and business are two most essential components that cannot be demolished no matter what the
expenses are or what hazards the economy is going through. Various ways of transportation along with
the linked trade routes, play a vital role in increasing the import export of the country. Gwadar being a
major port city of Pakistan also serves as a strategic regional hub for commercial traffic from Middle East
china, Srilanka etc.
The location of Gwadar Port can run the whole World system. It can converge and diverge the world
businesses. If we compare Dubai with Gwadar, Dubai lacks in this area only because it doesnL have
capacity to embrace all ships. The transit cargo can easily be undertaken from Gwadar and transported
to any part of the world in a short span of time, in comparison to other ports.
These days Economic strength has gained much importance then the military power to judge any
counLrys sLrengLh and poLenLlal and Lhe mosL lmporLanL means of Lrade ls carrled Lhrough eas.
Countries which have seaports are known as strong countries and hence they influence other countries
to build relations with them.
Gwadar port has all the facilities available in view of transportation. For this type of port, any industry is
feasible because it will have constant flow of goods. Being the main port, it will have raw materials as
well as finished goods to be processed. These industries will flourish the economy of whole Pakistan by
spillover effect.
Gwadar Port can earn a large amount for Pakistan by being a means of transit for other countries.
According to S. Frederick Starr, it is estimated that Pakistan could earn around $600 million only from
India as a transit fees of IPI gas. As far as China is concerned, Gwadar port is just 2500km away from
Sinkiang while its own port is 4500km away. China southern provinces can be developed by finding
shorter access to Indian Ocean for its export.
Name: Wafa Tariq Bahria University BBA 6-E ms.wafa.tariq@gmail.com
Through Gwadar port, the gas and oil deposits of CARS can be built. Countries who are short of energy
can be easlly supplled LnC from Cwadar. Pence lL can be Lermed as Lnergy orL"
unlLed naLlons revlew of MarlLlme 1ransporL (2006) reporLs, 1he world merchanL fleeL expanded by
7.2% to reach 960.0 million deadweight tons (dwt) at the beginning of 2006. World container port traffic
continued to expand at the rate of 12.6% during 2004, reaching 336.1 million Twenty-Foot Equivalent
Units (TEUs). Ports of developing countries handled 137.0 million TEUs, or 40.7% of the total.
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The same
Trade Potential and Industrial Development in Gwadar review of UN for 2004 indicated that the world
container traffic of around 300 million TEUs is likely to be double by the year 2015.
4

The development of Gwadar project would be beneficial for the country in terms of wealth as well as
economically. Unemployment will be reduced along with the increment in investment opportunities,
helps in peak season overflow of incoming and outgoing cargo.
If we focus on the business interest of other countries in Gwadar port, we will note that India, Iran,
China, Afghanistan has been finding their own interest in the existence of Gwadar port. India is in dire
need of energy resources because of the demanding economy. The only access it has is through Wagah
8order of aklsLan. Accordlng Lo Lxpress 1rlbune, aklsLan granLed lndla Lo flow lLs good Lhrough lLs
ports in 2010 buL Lhe growlng conLroversles and dlspuLes has made road access Lo be a far cry"
5

Since China and Pakistan relations are very good from the beginning and China has helped in every
crucial phase Pakistan has gone through, it is also supporting Pakistan for the development of Gwadar
Port because this port will be a doorway for China to strengthen its weak provinces and to shake hands

3
unlLed naLlons Conference on 1rade and uevelopmenL (unC1Au), 8evlew of MarlLlme 1ransporL 2006",
http://www.unctad.org/Templates/WebFlyer.asp?intItemID=3969&lang=1

4
unlLed naLlons Conference on 1rade and uevelopmenL (unC1Au), 8evlew of MarlLlme 1ransport 2004",
http://www.unctad.org/en/docs/rmt2004_en.pdf (accessed 29 December 2006)
5
kooo bobboz loJlo floJs toote to kobol vlo loklstool seopotts, 1be xptess 1tlbooe, Ioly 20, 2010.
Name: Wafa Tariq Bahria University BBA 6-E ms.wafa.tariq@gmail.com
with other Gulf countries as this port could also be the part of String of Pearls" which is Chinese Sea
Lines of communication.
This term Lrlng of earls" was first used by the defense contractor Booz Allen Hamilton to describe the
Chinese maritime strategy as:
Chlnas growing interest and influence from South China Sea through the Indian Ocean and on to the
Arabian Gulf has been descrlbed as a Lrlngs of earls". AparL from Cwadar, oLher pearls ln Chlnas sea-
lane strategy are port facilities in Maldives, Cambodia, Bangladesh, Thailand, Myanmar and the South
China Sea."
6

According to Senior Government Official, Chinese petroleum industry has indicated an interest in
shifting its excess capacity to Gwadar, bringing in estimated investment of $13 billion.
7

The growing relation of China with Pakistan has threatened USA and India as they are afraid that
Gwadar Port will become a naval base in near future for it prime location. The construction of
International Airport at Gwadar has built new horizons for the Pakistan economy.
On the other hand, Iran being the target because of its nuclear program sees Gwadar port as a safe
means to export its oil and gas to India, China and other oil deprived countries.
Keeping in view the importance of Gwadar Port, Government of Pakistan has declared it as a free
economic zone in terms of taxes for around 40 years which has attracted more investors and has helped
explore vast potential of natural resources hidden in the area. This port will also lead to the
development of heavy and large-scale industries, petrochemicals and manufacturing sector in near
future. Pakistan is already strategically located and this seaport has not only enhanced commercial

6
(lolt c. cbtlstloe, uoJet tbe btlokloq u.. ecotlty umbtella: loJlos oJ Come lo Afqboolstoo, 1be wosbloqtoo
Quarterly, 34:2, 179-192, http://www.twq.com/11spring/docs/11spring_Fair.pdf, (accessed on December 6, 2011)
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Gwadar Private Scheme Information Center - http://gwadarprivatescheme.wordpress.com/page/2/
Name: Wafa Tariq Bahria University BBA 6-E ms.wafa.tariq@gmail.com
worth but has helped in development. It has made the access to the Central Asian States more
convenient.
Fishery Industry of Gwadar Port is one of the oldest and most important economic activities in Gwadar
district. The villagers of Gwadar Port have been doing it since centuries. It has the availability of 70,000
tons of fishes. This fish business is building vacancy for many uneducated people of Gwadar; creating
employment.
Cwadar ls also rlch ln flsherles, belng an anglers bay for cenLurles, no less. 1he 600 km long coasLal llne
has a potential to fish and crab exports and accompanying food-processing industrles" (Pashml 1999).
It is expected that Gwadar port will be able to unlock the potentials of our own country as well as the
neighboring countries. It will not be beneficial to promote trade for Persian Gulf states only but will also
facilitate cargo but still it needs at least 8 to 10 years to be fully developed to enjoy the real benefits of
Gwadar port.
According to The Port Industry
8
, The definition of successful hub port requires meeting the demands of
shipping lines. These demands comprises of concessions to global operators, lower port tariffs, quality
services, accommodation of super large ships and consolidated port operations. Gawadar port will have
to meet these demands to attract business.
Gwadar port has the potential to enhance all type of business activities irrespective of the cost. Gwadar
port has the capacity to import and export all items because the means of transport is available here
and is linked with almost all countries and trade routes.
The Gwadar project can provide job to thousands of people of the country in a short span of time, as
everything new has to be developed and there will be a large requirement of human resource.

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www.unescap.org/ttdw/Publications/TFS.../pub.../pub_2377_ch3.pdf (accessed December 9, 2011).
Name: Wafa Tariq Bahria University BBA 6-E ms.wafa.tariq@gmail.com
Developing new projects in the country has far reaching benefits in comparison to loans and outside
jobs begging for each and every penny and job.
Gwadar has the potential to flourish from every angle, whether it is about fishing, transiting,
manufacturing, tourism or any other business activity whether known today or emerging with the help
of ever developing technology. Merely the construction of Beautiful Seaport will not serve the purpose
and cannot flourish trade and other business until we explore all the potential of Gwadar.
If the situation of Gwadar port is considered and the business is considered, the weak road and rail links
wlLhln Lhe clLles of aklsLan and 8aluchlsLans slLuaLlon lLself are Lhe blggesL hlndrances for any buslness
activity to be carried out. The relations of some specific tribes of Baluchistan with the government and
the prevalllng clrcumsLances have also affecLed porLs buslness poLenLlal.
In order to have successful business future, it is important to develop infrastructure such as rails, roads
and other communication networks. Local industries should be developed as well as taken care of in
order to boost volumes of export and import and most importantly the law and order situation of
Baluchistan and Afghanistan should be coped with in order to have connection with other countries via
road and rails.
Concluding the essay, for any nation, economy is the most powerful and essential element to strengthen
the stability of country. We look forward to see Gwadar port generating revenues for the country,
attracting foreign investors and opening new horizons for upcoming industries with new job
opportunities. Though Gwadar Port is capable of transiting enormous amount of trade goods but it faces
competition with the developed ports of the area. A strategic plan should be made to make it a
competitive project.