Gwadar Port

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Introduction: Geo-strategic importance of Gwadar Port. China's immense investment. Port of Singapore Authority. India's and Iran's concern over Gwadar Port. United States and Gwadar Port. Some old but still looming problems. Conclusion.

1- Introduction: Gwadar Port which is third deep sea port of Pakistan--- Karachi port and Qasim port being the other two, is located in Balochistan province of Pakistan. It is situated at the entrance of Persian Gulf, at the apex of Arabian Sea, about 460 Kilometer away from karachi, from China it is only at the distance of 2,500 kilometer and approximately 75 kilometer away from Iran. In 1964 it was identified as a port site in Pakistan. Technical and financial feasibility studies of Gwadar Port were commenced by Government of Pakistan in 1993 but construction work did not commenced untill 2002. Gwadar Port was officially inaugurated on 21 December and so it become operational with the first ship to dock bringing 52,000 tonnes of wheat from Canada. 2- Geo-strategic importance of Gwadar Port: Being only 180 miles away from the exit of Straits of Hormuz (through which 40% of world oil passes) would enable Pakistan to take control over world energy-jugular and interdiction of Indian tankers. Gwadar Port can serve as the key shipping hub in the area by providing mass trade to Central Asian countries as well as across Pakistan and China. Gwadar's strategic value has been acknowledged by China. China is also interested in turning it into an energy hub by building an oil pipeline from Gwadar into China. The pipeline will carry crude oil sourced from Arab and African states. Such transport by pipeline will cut freight costs and commercially it is hoped that Gwadar Port would generated million jobs. Shanghai Port is about 16,000 kilometer away from Chinese industrial areas whereas Gwadar port is only at a distance of 2,500 kilometer from China. The distance from Kashgar to Chinese east coast port is 3,500 kilometer, whereas the distance from Kashgar to Gwadar is only 1,500 kilometer. Due to Gwadar's strategic geographical position, in case of any mojor war Pakistan Navy doesn't get blockade. With all the navy ships concentrated at Karachi port, a blockade of Pakistan had been quite easy in the past. Gwadar port is approximately 450 kilometr further away from Indian Border than the Karachi Port. 3- China's immense investment: Gwadar port is being constructed in two phases with heavy investment from China. The total cost of the project was 248 million dollars, of which China has contributed 198 million dollar for the first phase. China has another heavy investment, 200 million dollar toward building a highway connecting Gwadar port with Karachi, which is a also a port on the Arabian Sea. The second phase, which will cost 932 million dollars and consisted on nine more berths, an approuch channel and storage terminals will also be financed by China. Besides its financial contribution, China has sent about 450 engineers and provided technical expertise for the

project.

4- Port of Singapore Authority: Upon completion of first phase, in 2007 government of Pakistan handed over the port operation to the Port of Singapore Authority (PSA) and gave it status of Tax Free Port for the following 40 years. The concession agreement for handling over operating rights to the seaport to the Port of Singapore Authority was signed between Gwadar Port Authority (GPA) and the Concession-holder Company (CHC), a subsidiary of Port of Singapore Authority International. But Port of Singapore Authority did not invest much money so Pakistan decided to transfer port management to China. Chinese government had agreed to take operational control of Gwadar port once a contract with Singapore's PSA International Ltd expired in around 35 years' time.

5- India' and Iran's concern over Gwadar Port: Gwadar port has been called part of string of pearls strategy of China where she has got hold of strategic ports in Gwadar, Bangladesh, Srilanka, Burma, Thailand, Combodia and South Chin etc. Thus Gwadar port is making regional nervous. Iran envisages Gwadar Port as an economical threat taking business away from Iranian Ports. So in order to neutralize the importance of Gwadar Port, Iran has developed its own port called Chabahar which is located 72 kilometer west of Gwadar , with the help of India. India is building 213 kilometer long road to connect this Iranian port with Afghanistan. India is looking this Iranian port as shortest route to Central Asian markets and a counter balance to Chinese influence in Gwadar. Not only that but India also started construction of Naval base at Karwan, south of Goa on India's Arabian coast, the first phase of which was opened in 2005. India is considering China's immense influence in Gwadar as a move by China to encircle India.

6- United States and Gwadar Port: Regarding Gwadar Port United States have two great concerns, first China's immense involvement and heavy investment in Gwadar Port as well as the extensive highway infrastructure that China has build connecting the port with rest of Pakistan. Being China's primarily economic rival United States thinks that China will monopolize the Iranian oil entering Pakistan via the port. And second India's cooperation with Iran in building Chabahar, as Iran has been facing international isolation due to its nuclear programme. Though United States have often expressed its concern on China's involvment and India's cooperation with Iran but avoid to take those actions which can destablised the area.

7- Some old but still looming problems: Gwadar is Pakistan's largest infrastructure project where billions of dollars have already been invested and much more is in development. But a few problems have been constrained Gwadar's timely development. Firstly, there have been serious delays in the development of the port (the first was completed in seventy-two months as against the initial plan of one-half that time). Every effort must be done to ensure timely completion of

projects as every delay costs the country billions of dollars. Secondly the government of Pakistan must have cognizant of Indian and American games, which include playing on the sentiments of Baloch people. Some Baloch people may have been alienate that they have been left out from the benefits of their assets. So the government of Pakistan should take such initiatives to make Baloch people sure that they are equal partners in this mega project. 8- Conclusion: Gwadar is truly a gift to Pakistan and world. The project is strategically dominating other regional ports and will probably be compromising the economic interests of neighbouring anti-Pakistan countries. The operation of port on full scale will definitely boost the economy of Pakistan and particular Baloch people. But Pakistan should not forget that there have been geo-political threats as well in Gwadar. Our leadership must recognize Gwadar's geo-economic importance and it must be cognizant of serious opposition from some quarters who were never real friends of Pakistan. Thus it is absolutely necessary for the government to continue to develop this critical national asset and implement all development schemes for the country with full commitment so that Gwadar Port may fulfill the dream of economic glory for Pakistan.