Understanding Economic Benefits of Trade-Corridor Between

Gwadar-Kashgar INTERMODAL Network

presentedby

Mr. Aasim Siddiqui

Ex-Chairman, All Pakistan Shipping Association (APSA) & Managing Director Marine Group of Companies

PAKISTAN AT A GLANCE
Population

184Million

GDP

US$310.42Billion

PerCapitaIncome

US$1684

GDPGrowthRate

3.6%

Imports

US$40.19Billion

Exports

US$24.46Billion

ForeignDirectInvestment

US$1.45Billion

MajorCrops

Cotton,Wheat,Rice,Sugarcane.

MajorIndustries

Textile,Cement,Fertilizer,Steel,AgroFood
ElectricalGoods,Transport&Logistics

Seaports

Karachi,BinQasim,Gwadar
Source:EconomicSurvey201213

Government Bodies In Intermodal Network

SEA

ROAD

Karachi
Port
Trust

National
Highway
Authority

AIR

Port
Qasim
Authority

RAIL

Civil
Aviation
Authority

Gwadar
Port
Authority

Pakistan
Railway

The Global Trade Of China - Imports

The Global Trade Of China - Exports

The Global Trade Of China Container Traffic

The Global Trade Of China Shipping Route

EXISTING Europe Western China (19132 miles)
DISTANCE Middle East Western China (12537 miles)

EUROPE

Gwadar
Port

Kashgar

MIDDLE
EAST

WESTERNCHINA

ASIA

2625MILES

ShanghaiPort

PAKISTAN
4645MILES
2662MILES

MIDDLEEAST

5250MILES

AFRICA

EUROPE
11845MILES
2000MILES

LONGDISTANCE&HIGHCOST

The Global Trade Of China Shipping Route

DISTANCE Europe Western China (9535 miles)
Middle East Western China (10242 miles)
SAVED

EUROPE
MIDDLE
EAST

1750
MILES

ECONOMIC CORRIDOR

CENTRALCHINA

Kashgar

ASIA

PAKISTAN - CHINA

1331MILES
Gwadar Port

MIDDLEEAST

545MILES

AFRICA

EUROPE
7847MILES

SHORTDISTANCE&LOWCOST

The Global Trade Of China Energy Transport

OILIMPORTS

US$314
BILLION
Source: International Trade Centre (2013)

Pakistan China | Economic Corridor

US$

20

BILLION

Worth Development Projects

Highway
Gwadar Kunjrab

Motorway
Karachi Lahore

Expressway
Muzaffarabad Mirpur

Freight Trains
Gwadar - Kunjrab

KHUNJERAB

Pak ChinaEconomicCorridor
Pakistan China | Economic Corridor

Highway
Gwadar Khujerab

KHYBER
ATTABAD
GILGIT JAGLOT
PARI
CHILAS

BESHAMQILA

MANSEHRA

PESHAWAR
Length(Approx)
Terrain
Lanes
Lanewidth
Shoulderwidth
DesignSpeed
Bridges,Tunnelsand
AvalancheGalleries
EstimatedCost
N40

2,395Km
AFGHANISTAN
Mountainous,
Rolling,Flat
26
3.65m
2 3m(outer)
1 2m(Inner)
70 120Kph
QUETTA
2 4lanes

HARIPUR

ISLAMABAD
ISAKHEL
KUNDIAN

FAISALABAD

N70

LAYYAH
TAUNSA

MULTAN

DGKHAN
RAJANPUR

INDIA

SUI

JACOBABAD
KHUZDAR

LAHORE

JAMPUR

DERAALLAHYAR

NAG

RATODERO
LARKANA

SUKKUR
Gwadar Kunjerab

M8

Highway

TURBAT HOSHAB

ani

GWADAR

N10

DISPUTED
TERRITORY

MUSAKHEL
MIANWALI

DARYAKHAN

DERABUGTI

PANJGUR

MUZAFFARABAD
ABBOTTABAD

SKARDU

FATEHJHANG
PINDIGHEB

Rs.1,200Billion

IRAN

GOR

KARACHI

Pakistan China | Economic Corridor

Motorway
Karachi Lahore
DGKHAN

NANKANASAHIB
JARANWALA
PIRMEHAL
TANDLIANWALA
ABDULHAKEEM
MAMUNKAJAN

LAHORE

KHANEWAL

MULTAN

SAHIWAL

SHUJABAD
JALALPURPIRWALA
UCHSHARIF
TARINDAMUHAMMADPANAH

JACOBABAD

ZAHIRPIR
RAHIMYARKHAN
GHOTKI
PANU AQIL

SUKKUR
PIRJOGOTH
KANDIARO
DADU

JOHI

DUREJI

KARACHI

HYDERABAD

Karachi Lahore
Motorway

Length(Appox) 1,186Km
Terrain
Flat,Mountainous,
Rolling
Lanes
6
Lanewidth
3.65m
Shoulder
3m(outer)1m
width
(Inner)
DesignSpeed 120Kph
Tunnel
Tobedetermined
afterfeasibility
study
6LanesoverIndus,
Bridges
(Tentative)
RaviandSutlej
Estimated
Rs.677Billion
Cost

Pakistan China | Economic Corridor

Expressway
Muzaffarabad Mirpur

MUZAFFARABAD
DOLAI
CHATTARKALAS

Length(Approx)
Terrain

196Km
Mountainous,
Rolling
Lanes
4
Lanewidth
3.65m
ISLAMABAD
Shoulderwidth 3m(outer)
1m(Inner)
DesignSpeed
120Kph
FATEHJHANG
Bridges,
4Lanes
Tunnelsand
Avalanche
PINDIGHEB
Galleries
EstimatedCost Rs.75Billion

DINA
BURHAJUNGLE

KOHALABRIDGE

AZADPATTAN
PONA

THAR
Muzaffarabad Mirpur
BALATHI
Expressway
RAMKOT
MANGLA/MIRPUR

Pakistan China | Economic Corridor

ASIAN HIGH WAY ROUTE MAP (ASIA)

CHINA

INDIA
Gwadar

Karachi

Pakistan China | Economic Corridor

Freight Trains
Gwadar - Kunjrab

Kashgar

Peshawar

China

Dera IsmailKhan

Khunjrab
Pakistan

Quetta

Lahore

Ministry of railways in
cooperation
with
Chinese
Consortium
will establish GwadarKhunjrab Rail Link at
an estimated cost of
over

US$ 2.3 Billion

TrackAccessProject
(railrouteforprivatesector)
RegionalConnectivity
(withChina)
RegionalConnectivity
(withAfghanistan)
RegionalConnectivity
(withIndia)
RegionalConnectivity
(withIran)
Gwadar
Pakistan

Karachi

BinQasim

Pakistan China | Economic Corridor

Kashgar
Peshawar
Torkham

A Marine Group Project

I n t e r m o d a l I n i t i a t i v e

Kunjrab

Chaman
Daud Khel

KhoiTaftan

Lala Musa

InlandContainerDepot

Lahore

Wagah

Khokarapar

Pakistan
Intermodal
Ltd. (PIL) will be
Pakistans First Private
Train
Operator,
to
facilitate efficient and
cost effective freight
movement
between
Pak-China
Economic
Corridor through its
well
established
intermodal
network
across Pakistan.
PILFreightRoute
(railtrackforprivatesector)

ContainerTerminal

BulkTerminal

Gwadar Port

KarachiPort

PortQasim

RegionalConnectivity
(withChina)

RegionalConnectivity
(withAfghanistan)

RegionalConnectivity
(withIndia)

RegionalConnectivity
(withIran)

Pakistan China | Economic Corridor

INTERMODAL SERVICE INFRASTRUCTURE

Port

FreightForwarding

SERVICES

Hinterland

TRANSPORT

Container
Terminal

RoadTransport
InlandContainerDepot
Ship
CalledAtPorts

Stevedoring

FreightTrain

BulkTerminal

Shipping
SERVICES

Clients

THE FUTURE OF ECONOMIC CORRIDOR

A WIN-WIN SYNERGY FOR PAKISTAN & CHINA
PakChinaTradewillcross

US$15Billionby

5.00

ExportsUS$Billion
ImportsUS$Billion

4.50
4.00

4.73
PakChina
FreeTrade
Agreement
Signed

4.14

3.03

3.00

2.71

2.70

2.32

2.50

2.09

2.01

2.00

1.65

1.53
1.21

1.14

1.00
0.50

4.28

3.28

3.50

1.50

2015

0.26

0.28

2004

2005

0.41

0.55

0.67

0.66

0.00
2006

2007

2008
2009
2010
PakChinaTradeOverYears

2011

2012

2013

Source:StateBankofPakistan TradeStatistics

THE FUTURE OF ECONOMIC CORRIDOR

A WIN-WIN SYNERGY FOR PAKISTAN & CHINA

>

A Congenial Legal Framework

>

Transport Service Opportunities

>

Establishing Inland Container Depots (ICDs)

The crossborder trade between Pakistan and China would require a congenial custom policies and regulations so
as to encourage the business community in the both the countries to actively take part in the growth and
development of this economic corridor.

Transport companies can explore more avenues of business and seek opportunities in the new markets through
joint ventures and investments in this economic corridor

The PakChina economic corridor will bring huge volume of cargo to and from China & Pakistan and will require
freight stations at various locations to bring port services closer to shippers in the hinterland through specialized
railroad services and decongesting the cargo traffic.

EfficientFreightVillages

>

IdeallythefacilitywillbelocatedclosetoamajormetropolitanareasbothinChinaandPakistanwhichwillalso
serveasamarketorsupplierofmuchofthegoodsthatpassthrough.Afreightvillagecanraisethelikelihood
thatsmallerfirmsutilizeintermodaltransportandopportunityforsharedservicesispotentiallyverylargeand
canrangefromthoseassociatedstrictlywiththemovementofgoodstothoseassociatedwithservingthe
nearbyresidentialpopulation.

THE FUTURE OF ECONOMIC CORRIDOR

A WIN-WIN SYNERGY FOR PAKISTAN & CHINA

>
>
>
>

Competitiveness in Export Markets

As soon as PakChina Economic corridor become operational; it will
substantially effect the cost of market access for China, giving its products a
more competitive edge in export markets. Similarly, Pakistan will have a
convenient access to Chinese markets for increasing trade between both the
countries.

Pak-China
Economic
Corridor

Infrastructure
Development

Strong Buyers/Suppliers Base

Business
Opportunities

China is the second largest trading partner of Pakistan in Asia; which will be
strengthen through this corridor as both the countries may find strong
buyers/suppliers in various sectors of mutual interest

Efficient
Transport Routes

Energy Projects
PakChina Economic Corridor will also initiate 19 energy projects of worth
US$ to generate over 22,000 MW electricity both in public and private
sector which will support the industrialization in the Special Economic Zones
(SEZs) being developed across this corridor

Environment Friendly Countries

Reducing the transport distances will substantially conserve fuel resources and
reduce carbon emission for creating a cleanair environment in the region

Expanding
Regional Trade
Job
Creation
Raising
PerCapitaIncome

Economic
Prosperity
Of Nations

THE NEXT STEP

LETS MEET & DISCUSS OPPORTUNITIES

THANK YOU