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Gwadar: Gwadar Port

Gwadar Port Sea Port GDA

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    Dictator Sahib

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China helped realise dream of Gwadar Port: president

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GWADAR ( 2007-03-20 23:23:11 ) : President General Pervez Musharraf on Tuesday said the dream of the Gwadar Port was realised with China's assistance and said its continued involvement will help in further improvement of the facilities and infrastructure at the country's first deep-sea port.

Talking to Chinese Minister for Communication Li Shen, the president said the two countries enjoy an all weather and strategic partnership that will continue to grow for the mutual benefit of the two people.

He said there was a need for greater long term involvement between the two countries to make the Port an important Container and Energy hub for the region.

The Chinese minister said that with the completion of the second phase, the Gwadar Port will be able to handle the world's biggest ships and more infrastructure can be added to enable it to serve as an energy hub for the region.

He said the Chinese government and people feel very connected to the project and will continue their long term involvement.

The president paid rich tributes to those Chinese workers and engineers who were killed during the construction of the port and said his dream would not have materialised without the help of Chinese people and government.

He said it was the deep friendship between Pakistan and China that has turned his vision into reality and helped the country enter a new era of economic prosperity.

Copyright APP (Associated Press of Pakistan), 2007



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President opens Gwadar Port, promises another at Sonmiani

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GWADAR ( 2007-03-20 21:58:21 ) : President Pervez Musharraf officially opened the country\'s third port on Tuesday, at Gwadar on the Arabian Sea, and promised a fourth was on the way.

President Musharraf said Gwadar, which he opened with Chinese Minister of Communications Li Shenglin, would be a gateway for trade with Central Asia. China provided 80 percent of Gwadar\'s $248 million initial development costs.

\"Gwadar will become an industrial hub, energy corridor and container centre ... The area will become a hub and trade corridor for the whole region in a few years,\" President Musharraf told a public gathering.

Conceived over a decade ago, Pakistan hopes Gwadar, 70 km (45 miles) east of the Iranian border and on the doorstep of Gulf shipping lanes, will handle trans-shipment traffic for the Gulf and ports on the Arabian Peninsula.

In February, Singapore port operator PSA International took over management control of the port for 40 years.

Pakistan is keen to become a conduit for trade to landlocked Afghanistan and Central Asia and now has three major ports -- Gwadar in Balochistan province and two at Karachi, 450 km (280 miles) to the east.

The country\'s fourth port will be built at Sonmiani, 160 km (100 miles) to the west of Karachi, also in Balochistan.

\"The foundation stone for this port will be laid this year,\" the president said, giving no further details.

Security was tight around Gwadar for the opening ceremony, with thousands of soldiers and police guarding roads and fishermen ordered to stay well clear.


Balochistan has been plagued for decades by a low-level insurgency by tribals seeking autonomy and control of gas and mineral resources.

Balochistan has the country\'s largest gas reserves and is rich in minerals, including copper and uranium.

Militants often attack pipelines, power transmission cables, railway tracks, buses and military and government installations.

They also opposed construction of the port and claimed responsibility for a bomb attack in 2004 that killed three Chinese technicians and wounded nine.

President Musharraf, who has announced plans for major infrastructure projects to win the support of the province\'s people, said the feudal ways of Balochistan\'s tribal chieftains had contributed to its underdevelopment.

\"Those are the people who want to suppress you and don\'t want to see a developed Balochistan,\" the president said.

He called on the militants to put down their weapons and not stand in the way of development, or they would face tough action.

\"I warn these elements that they have no future, they will be eliminated,\" he said.

Copyright Reuters, 2007



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Real significance of Gwadar port

By Masood Anwar

KARACHI: Yesterdays’ small fishing village of Gwadar, located on the southwestern coast of Pakistan, is now all set to become a hub of shipping and commercial and industrial activities. But more than a shipping hub for transshipment in the region, it has emerged as the most strategic port. Present and future powers are analysing the advantages and disadvantages of the newly-built deep-sea port.

Gwadar, which is close to the Strait of Hormuz in the Persian Gulf through which more than 13 million barrels of oil passes every day, is now emerging on the world map as the most important coastal town located at the intersection of three most strategically and economically important regions of the world, which are oil-rich Middle East, South Asia where one-fifth of the world’s population lives and Central Asian Republics (CARs) having vast reserves of oil and minerals.

Gwadar port, the third deep-sea port of Pakistan, seems to be of no major use to Pakistan as there is no need of a feeder port in Balochistan deserts. Moreover, the two existing ports in Karachi (Karachi port and Bin Qasim port) are also expanding their operations. However, it was the requirement of world powers.

Basically, it was the brainchild of the former USSR who sought a port in hot waters and to meet that target, it invaded Afghanistan. But Russia was forced to withdraw from the country.

The new emerging economic superpower of China is also facing the same problem. It doesn’t have any port of hot waters, which can be used the whole year. The Shanghai port is approximately 16,000 km away from Chinese industrial areas and sea travel takes an additional two to three months. This costs them a lot in the form of taxes and duties as well. Compared to this, Gwadar port is only at a distance of 2,500 km from China and the port will be working the whole year because of its hot waters.

China’s decision to finance the construction of Gwadar port and coastal highway linking the port to Karachi will help its plans to develop western China. The distance from Kashgar to Chinese east coast ports is 3,500 km, whereas the distance from Kashgar to Gwadar is only 1,500 km. The cost benefits to China of using Gwadar as the port for western China’s imports and exports are as evident as the long-term economic benefits to Pakistan of Gwadar becoming a port for Chinese goods.

But this is only one side of the picture. China has no blue water navy and feels defenceless in the Persian Gulf against any hostile action to choke off its energy supplies. To cope with the new challenges, the Chinese leadership envisaged a new plan that was called by the US as “assembling a string of pearls”.

Besides Gwadar, this string includes Chittagong of Bangladesh in the Bay of Bengal and Myanmar in the Indian Ocean. China has helped build the Chittagong port in Bangladesh where it is seeking an extensive naval and commercial access. In the case of Myanwar, Beijing has showered billions of dollars in military aid.

It has provided support for building several ports, road and rail links from the Chinese province of Yunnan to the Bay of Bengal, and a monitoring post on Myanmar’s Coco Islands for sea traffic.

The new Chinese plans have rung alarm bells in India and the US too. India feels that it is encircled by China from three sides - Myanmar, Tibet and Pakistan. To counter Sino-Pak collaboration, India has brought Afghanistan and Iran into an economic and strategic alliance.

Following the Chinese ambitions in the region, India has pursued closer military ties with the US and issued a new naval doctrine stressing the need of protecting energy routes and responding to Beijing’s inroads into the Arabian Sea.

To counter the Gwadar port that is also called the Chinese Gibraltar by Washington, India has built Chabahar port in Sistan-Balochistan province of Iran - just adjacent to Gwadar. India is also helping Iran in building a 200km road that will connect Chabahar with Afghanistan. It will provide access via land to the port for their imports and exports to and from Central Asia. Presently, India is in urgent need of a shorter transit route to quickly ship its trade goods to Afghanistan and Central Asia.

However, Gwadar has an edge over Chabahar, which is a seasonal port and cannot work in the monsoon season while Gwadar can be used in all seasons. Moreover, it was not in the interest of central Asian states to ship oil to Iran as the US will not like its friendly nations to trade with Iran.

China has multiple interests in Gwadar including protection of the oil supply route from the Middle East, keeping an eye on US navy, deployment of its navy near western India and threatening the oil trade route of its enemies.

Despite the fact that the Gwadar port is meeting Chinese purposes, the US has not objected to building the sea port. The US does not want to let Iranians get importance in the region, especially in transit trade with central Asian states. Once Gwadar becomes operative, they may put pressure on European nations not to get oil from there but from Gwadar.

Now President Bush sees Gwadar as an advantage rather than a threat. He is confident that Pakistan will not allow the Chinese Navy to block US trade goods on the route and inside sources believe Musharraf has made some promises in that regard.

Now, China is making future plans. It is spending huge funds on its navy - long a neglected arm of the military services. China is building its fleet of amphibious assault ships and submarines and in December 2006 launched a new class of nuclear submarines.

To enter the blue waters, China needs a base at Gwadar, which is denied by Pakistan’s government. However, the US believes Pakistani authorities have given a green signal to China to use it as a port of call for its navy that would give Beijing the ability to monitor the Middle East oil routes.

Gwadar may not be a full-fledged Chinese naval base but it can facilitate them, experts say. In case of war, China believes the US Navy is capable of stopping their oil supply from the Middle East, hence by deploying its navy on the route Beijing can prevent such a move as well as stop supply to Taiwan and Japan.




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China's footprint in Pakistan
A new port is a boon locally, a potential military asset for Beijing and a worry to the U.S.

By Henry Chu
Times Staff Writer

April 1, 2007

GWADAR, PAKISTAN — Along a scenic beach where fishermen mend their nets by hand, an endless row of storefronts stretches into the distance, all selling the same thing. Not sunscreen, umbrellas or cold drinks. Land.

Never mind that the area is home to a violent separatist movement, or that foreigners are regarded with suspicion by police. A property boom has hit this formerly sleepy town in southwest Pakistan because of the latest addition to Gwadar's modest charms: a strategic new port on the Arabian Sea, almost all of it paid for by China.

The deepwater port has the potential to become a major shipping hub for Central Asia and China, particularly for the oil that China is sucking up to fuel its explosive growth. Gwadar, near the Iranian border, sits close to the entrance to the Persian Gulf and the Middle East, China's biggest source of crude.

But officials in countries such as India and the United States are eyeing the port warily, seeing more there than mere commercial value.

They fear its possible future use as a base for Chinese ships and submarines, given the close ties the governments of China and Pakistan have enjoyed for decades. From Gwadar, analysts note, China could project its growing economic and military might westward, toward the Middle East, western India and eastern Africa, and down into the Indian Ocean.

An internal Pentagon report leaked two years ago concluded that China was trying to establish a "string of pearls" along the rim of the Indian Ocean, ports that it eventually could use for military purposes. Besides Gwadar, Beijing has invested in ports in Myanmar, Bangladesh and Sri Lanka.

"At the moment, these are [just] fears," Ashley Tellis, an Asia expert at the Carnegie Endowment for International Peace, said of potential Chinese military use of Gwadar's new port. "But there is no logical reason why the Chinese would not contemplate the military benefits of such a facility for the long term."

That Beijing considers the port in its national interest is amply demonstrated by the fact that it put up 80% of the $250 million in construction costs, is funding a new airport here and dispatched its communication minister to witness Pakistani President Pervez Musharraf inaugurate the port last month, with great fanfare.

"It is the friendship between China and Pakistan that has made my dream of Gwadar come true," Musharraf said. "We thank you. We thank China."

The idea of building a port at Gwadar has floated around in Pakistan for decades. It took on added urgency after the Indian navy blockaded Karachi, Pakistan's largest port, during a war between the two rival countries in 1971. But it was Musharraf, more than a quarter of a century later, who made a major push to get it done.

Backers of the project entertain visions of Gwadar as a new, more convenient gateway for trade from Chinese and Central Asian markets to points west. For China, closer access to the sea from its landlocked western territories, where a massive development campaign is underway, can save thousands of miles and days of travel for goods that would otherwise have to exit the country from the east on a much more circuitous route.

Optimists also hope that bringing prosperity might drain away some support for a militant secessionist movement here in Baluchistan province that has given the Pakistani government headaches for years. This rugged region is rich in resources, including large natural gas reserves, that the government in Islamabad would like to tap. But many Baluchis — ethnically different from the Punjabis who people the corridors of power — fear being unfairly exploited.

Construction of the port has been plagued by problems that do not augur well.

Delays in completing infrastructure works pushed back the port's planned opening by more than a year and reportedly triggered complaints from the Chinese side. Security became a big issue when, in May 2004, three Chinese engineers were killed in a car bombing.

Even now, rifle-toting soldiers and police officers are common sights, their dark uniforms stark against Gwadar's dramatic backdrop of jagged chalk-colored cliffs, deep blue sea and a colossal rock formation that thrusts into the ocean like a giant's arm.

Despite the image of welcome that officials are trying to cultivate to attract investors and visitors, the security forces sometimes operate with a heavy hand. When an American reporter tried to visit Gwadar a few days after the port opened, police officers and intelligence agents stopped him at the airport and confined him to a hotel for several hours until U.S. diplomats and apologetic Pakistani officials in Islamabad intervened.

In a recent editorial, the respected Dawn newspaper said the government had to ensure that local residents benefited from the port if it hoped to dilute resentment of its rule.

Any significant recruitment of skilled or semiskilled labor from other parts of the country "will be seen by the local people as an attempt to deprive them of employment opportunities now that they have at long last come to their area," the paper warned.

Because there is currently little industry in Baluchistan to take advantage of the port, some analysts predict that it could take years before the economic benefits become widespread.

For China, the advantages of the new port are obvious.

Gwadar would provide a more secure corridor for China's fuel and energy supplies in the face of instability in the Persian Gulf and also down in the pirate-infested Strait of Malacca, by Indonesia, through which 80% of China's oil imports now pass. From Gwadar, imports could travel overland up through Pakistan and into China.

Trade out of China's own restive western region of Xinjiang would also be easier and faster. The distance from Kashgar, on the edge of Xinjiang, to Gwadar is 1,250 miles, versus twice that distance to reach Shanghai.

Some analysts see a more strategic interest in Gwadar. They say it could play host to Chinese vessels, listening stations or an outpost from which Beijing could monitor the Persian Gulf and the Indian Ocean, including the U.S. Navy base on the remote island of Diego Garcia, a key launching pad for operations in the Persian Gulf.

But a beefed-up Chinese military presence in Gwadar probably is years away, if it happens at all.

"I'm extremely doubtful the Pakistanis will allow the port itself to become a Chinese base," said Pervaiz Iqbal Cheema, president of the Islamabad Policy Research Institute. "Pakistan and China are extremely close, and they would probably look after each other as much as their national interest permits. If our national interest permits that we go all the way, we may, but I'm skeptical about it."

At the moment, the mad dash in Gwadar is not about geopolitics but about capitalizing on exploding land values. Eager speculators and investors from Islamabad, Lahore and Karachi have flocked here; billboards tout shiny new housing projects yet to be built.

The brochure for Gwadar Florida City entices buyers with an imaginary future skyline that looks suspiciously like Miami's. When the company's first housing development went on sale in 2003, buyers snapped up 500 plots in three days, said local representative Abdul Hameed. Those parcels, each measuring 4,500 square feet and costing about $8,300 then, can go for four times that amount now.

Even some fishermen have noticed a rise in their fortunes.

"When we used to catch fish, there were no takers — we used to throw away half our catch," 55-year-old Mohammed Ibrahim said as he rolled up his nets, the sharp tang of brine in the air.

Recently arrived wholesalers now buy up Ibrahim's haul and send it off to Karachi. He has made enough money to buy a second boat. And he's not worried about migrants moving to Gwadar and horning in on his business.

"People are coming from outside," he said, "but the sea is so big we don't have a problem with that."




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Neighbours out to fail Gwadar Port, reports revealed in 2003

By Khalid Mustafa

ISLAMABAD: The Pakistan's embassy in Dushanbe, in a report to the Foreign Office in 2003, claimed that Iran, India and Afghanistan had joined hands to make the Gwadar Port a failure.

The Chabahar port would inflict a huge financial setback to Pakistan, which is pinning high hopes on the Gwadar project as the transit point for goods from Russia and the CARs bound for the Gulf and the East, the report said.

Iran, India and Afghanistan want to make the Iranian port in Chabahar a success story at any cost and have come out to this effect to make Gwadar Port, which is a potential threat to Chahabar port, a failure, say the documents available with The News about the correspondence of Pakistan's embassy in Dushanbe with Islamabad. The Dushanbe embassy unveiled this alarming news in its correspondence made with Islamabad in September 2003.

The documents say that Iran, with the connivance of India, has come out to make Pakistan's plan to allure maximum business form Central Asian Republics through Gwadar Port, unsuccessful, with India playing a vital role in building Iran's Chabahar Port to monopolise trade from Tajikistan, Kyrgyzstan and Kazakhstan, intended for the Gulf and the East.

According to the embassy dispatch, which was later sent to the Ministry of Communication, almost the entire trade activity from Kazakhstan, Kyrgyzstan and Tajikistan intended for the Gulf and the East would be routed through Chabahar instead of Gwadar.

They documents said the construction of the third phase of Iran-Afghanistan Transit Highway had also begun near Zabul border post on July 14, 2003, which has now been completed and made operational. The official said that the 15km of highway has been connected with Zabul's Zahak district to the border post and onwards to the Silk Bridge constructed over Parian river. The river serves as the border between Iran and Afghanistan. The third phase of Iran-Afghanistan Transit Highway got completed in March 2004 at the cost of 43 billion Iranian riyals. The highway's earlier phases, joining Chabahar to Zabul and Zahak, were completed earlier.

Iran, Afghanistan and Tajikistan had inked a trilateral agreement for the Anzob Tunnel project. Tehran provided $10 million grant for Tajikistan to complete the project. The tunnel, which is now operational, is providing safe and uninterrupted road access to Chabahar port from Tajikistan. Iran also extended $21 million credit to Tajikistan for developing its transportation and road sector.



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Gawadar Port advanced gears setup to be completed by Dec.
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GAWADAR: The underway installations of the high-tech equipments at the Port here would be completed by December, paving the way thereby for regular operations kicking off from January.

PSA Gawadar Chairman, Khurram Abbas told Geo News that the port would initially be used for the trans-shipments of cargo by providing facility to the ships heading to the region’s other ports, while planning was also underway for using the port for coal imports due to increasing demand of coals in the country besides the problems faced in its handling at the Karachi Port and for this special attractive tariff would be offered. He said that this port would also be employed for fertilizer imports.

Khurram Abbas said that the internationally reputed two shipping companies have assured bringing ships to the port for trans-shipments.

On the other hand, Gawadar Port sources told that the process of handing over the port gears and overall port control to the Port of Singapore has started.



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Gwadar port may be fully operational next month

By Ihtashamul Haque
ISLAMABAD, Aug 15: The Singapore Port Authority (SPA) which is to run the Gwadar Port has overcome its teething problems and the port is likely to be made fully operational from next month with three berths handling the arriving ships.

However, according to authorities, the port requires more berths to handle big ships.

Director-General of the Gwadar Development Authority (GDA) Ahmad Bakhash Lehri told Dawn that businessmen need more warehouses and other equipment to enhance the country’s foreign trade. He said that due to destruction of the coastal highway and floods, it had become difficult to make the port fully operational. “But this job is expected to be done by next month,” he said, adding that ships had started to arrive at the Gwadar port.

An Iranian ship carrying relief goods for flood victims in Balochistan had reached the port recently, he said. He expressed the hope that the SPA would be in a position to run Gwadar port by next month. Sources said the Singapore-based operators were told to expedite their work, especially after having received a 40-year tax holiday, despite concerns expressed by other investors and the World Bank and the Asian Development Bank (ADB).

“The government is already extending tax exemptions and tax holidays at various industrial zones and duty-free economic zones and that is why such a facility had been offered to Singapore port which is investing $550 million there,” a senior government official said. He said that export processing zones were also enjoying certain tax holidays and exemptions and there was nothing exceptional in the case of the SPA.

Gwadar port located at Balochistan is being considered as a future trading hub in the region due to its proximity with the Gulf region.

Initially, the port is expected to face competition from Port Salalah of Iran. But after completion of the Phase-II by 2010 at a cost of $840 million, it is likely to become one of the busiest ports in the region, providing warehousing, trans-shipment and industrial facilities for trade with over 20 countries, including Gulf countries, Iran, Central Asian States, India, China and East Africa. Phase-I of Gwadar port has cost $298 million.

The government also planned some other concessions at the proposed Export Processing Zone (EPZ) near Gwadar port for local and foreign investors. There will be tax exemption on customs, sales tax and excise duty in the EPZ with a view to promote substantial investment in Gwadar.

A number of foreign investors have shown interest to establish mega refineries, building storage capacity and undertaking other businesses in Gwadar to help expedite the process of industrialisation in Balochistan. With the completion of both phases of the Gwadar port, a Special Industrial Development Zone (SIDZ) with an area of 4,000 hectares will also be set up for various industries.

The SIDZ is located on the north of Gwadar town at a distance of about 30kms from the port. The federal government is also providing special Rs700 million funding to Balochistan to help meet 15 years water demand of the Gwadar Industrial Estate (GIE) through installation of a foreign assembled desalination plant.

The future demand of water supply will be met partly by recycling of waste water (irrigation and industrial cooling) and partly by addition to the desalination plant. At present, there is no water resource available in the area.

The Balochistan government has provided 3,000 acres through two separate allotment letters, out of which 20 acres will be made available free of cost through the GIE to set up water desalination plant, intake work, storage tanks and other facilities.

The total cost of water supply from the plant (including depreciation) will be Rs0.25 per gallon against the cost of water supplied by tankers at Rs0.76 per gallon.

There will be approximately 2,000 industrial units in the GIE providing employment to 30,000 workers. Most of the production will be export-oriented and will bring foreign exchange to the country.

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Gwader – A trade corridor of Asia
by Ali Osama

Pakistan is geographically located at a place in the Asia so called trade corridor of Asia. The trading of goods through ports and shipment give a tremendous boost to a country’s economy. As majority of exports of our country are carried out through this way, it adds sufficiently to country’s exports. So for a port’s development, trans-shipment and ware houses facilities should be enriched and reconnoitred with the latest technologies and developing tools, so that it may enable us to nullify the acrimonious charms of trade hindrance.

The construction of mega project like Gwader is also an emanating step of up gradation of ports, which will give tremendous boost to Pakistan’s importance in the whole region, extending from the Persian Gulf starting through the Indian Ocean to Southeast Asia up to Far East.

In 1958, Gwader was enclaved and transferred to Pakistan by the Agha Khan 3 who purchased this area with a generous amount of 3 million pounds, and handed it over to Pakistan. Gwadar is a district along the sea in south of the Makran. The total area of this district is 12,637 square kilometers with a population of almost 30000 people and this district comprises Gwadar and Pasni Sub-divisions.

Gwader port is situated at 470-km westward from Karachi on the coast of Arabian Sea, which makes it difficult for the Indian navy to riddle in the socio economic benefits of the people of the region. The 98% of the cargo traffic is currently operated by Karachi port, and by construction of Gwader port, not only the entire burden will be transferred to Gwader port, also it will provide warehousing, trans-shipment, and industrial facilities for trade to more than 20 countries.

Initially, this project was going to start in 1992, when Holland first came with its investment and project plans, to engage in the operations of Gwader, but due to unreasonable circumstances that project was not swayed by the government and remained unvalued. This project is divided into two phases relating to the mega construction of deep-sea port, which is being operated by China Harbour Engineering Company Group. The first phase that was started in March 2002 costed an amount of 250 million dollars in which Exim bank of China supplied an amount of $118 million along which China has promised to provide $50 million soft loan and $31 million interest free credit, and this project was completed in 2005. The 2nd phase, which is under construction costing an amount of 600 million dollars, was to be completed in 8 to 10 years. And in order to add stupendous benefit to this project and industrial zone of about 4,000 hectares along with the construction of an oil refinery comprising a daily oil output of 60,000 barrels which is spread on an area of 1000 hectors is being operated for construction by Chinese and local engineers, corroborating fervoursly to this project. Recently this refinery is on bidding by governments of Kuwait and Saudi Arab for 2 Billion dollars.

The construction of Gwader port also prevailed its burgeoning benefits by the completion of three other mega projects that are situated near the port like Meerani dam which is capable of irrigating the 34000 acres of land, a Sandik project that will provide 12500 tons ‘raw copper and sufficient reservoirs of gold operated by Chinese company MRDL who invested 25 million $ on it by means of creating a link between Taftan to Saindak that will provide a efficient way of transporting these precious metals for further processing in the cities. The third one is the mega construction of 653-Km long Makran Coastal Highway that links Karachi to Gwader and it costed an amount of $ 200 million.

The construction of transport facility to Gwader by means of planes, in which an airport with a 9,000-foot jet runway capable of handling Airbus and Boeing aircrafts costing Rs 450 million $ is under its way to completition. And by means of road, another 515-km long highway connecting Gwadar via Panjgpur, Khaan, Chaghi and Rabat up to Herat in eastern Afghanistan will be constructed, that will link Pakistan directly with the roads with the central Asian countries. And for this purpose, Islamic Development Bank (IDB) has offered $100 million for construction of roads linking Gwadar Port with Central Asian Republics. Also the construction of a railway track that will link Gwader with the other cities of Pakistan costing 1.25 billion $ is also a belligerent step towards its significant development.

At present, the contribution of china’s trade with rest of the world is counts more than 35%, by which china comprises world’s largest textile production, contributing to one-fifth of the world’s garment industry and nearly 60 percent of Pakistan’s military systems and equipment is of Chinese origin. By the construction of master plan of Gwader, which is located near the straits of hurmoz through which more than 13 million bbd of oil passes, and by which 80% of the world’s energy exports are in process, will enable China to monitor its energy shipments from the Persian Gulf. As Chinese are already alarmed of the strong US military presence in the Persian gulf through which 60% of their energy needs are carried out, this port provides China a strategic foothold in the Arabian Sea and the Indian Ocean by means of their naval presence as both India and USA do not want to see a the brewing hold of china, sitting opposite the Strait of Hurmoz. This port also imparts a strategic superiority of defense to Pakistan against India by means of its strategic importance in the region.

The construction of residential plan in Gwader commonly known as Gwader City that constitutes a residential area of 400 hectares stretching north of the existing town along West Bay is under its way to completion. To further aid this project, a Dam is being built 30 kms from Turbat (in the neighbouring Kech District) for the future water requirements of Gwadar City. Most of the plots in this area, after initial allotment to public, have been sold at a very high price, i.e., Rs3 million for a 1,000 sq yards residential plot and Rs5 million for a 1,000 sq yards commercial plots which enlights the importance of this land Recently, Pakistan has handed over this port’s operations to a company, PSA of Singapore for 25 years giving it the status of Tax Free Port for the next upcoming 40 years. This company will install its heavy industrial machinery and other sophisticated equipment tools that panopticaly enhances the development of industrial zone, ensuring the exuberance glimpse of aid for the trading activities in Pakistan.

Now with the construction of this, port a hope that Pakistan’s exports will raise dramatically will boosts up the economy as its construction and other mega projects started in Balochistan by the government can earn up to $60 billion every year over the span of time, and hopefully will provide a firm basis for the socio-economic uplift. This marvellous completion will lead Pakistan devoid of its major hindrances towards economic development. May Allah bless us with further hope towards development plans so that we can extricate Pakistan from the impecunious group of developing countries.

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More tax exemptions needed to save Gwadar port deal

By Sajid Chaudhry

ISLAMABAD: The fulfillment of additional three tax exemptions would help save the agreement signed with the Port of Singapore Authority International (PSAI) for operations of the Gwadar Port, a senior government official told Daily Times on Wednesday.

PSAI has demanded from the government of Pakistan to also allow tax holiday for concession holder and operating companies from corporate income taxes for a period of 25 years, exemption of the lenders from income tax on interest and stamp duties in the respect of financing agreement and exemption of the operating companies from sales tax.

The ministry of ports and shipping has informed the finance ministry that in pursuance of approval by the cabinet’s economic coordination committee (ECC) accorded in its meeting held on February 1, 2007, certain tax exemptions were notified under SRO 327 (i) 2007 and SRO 755 (i) 2007 issued by the revenue division.

The ECC had accorded approval to concession agreement for 40 years for operation of Gwadar Port Authority (GPA) with PSAI/AKD. Subsequent to the ECC approval, the concession holder had demanded additional exemptions, which were included in the concession agreement signed by GPA with the port operator.

The GPA has now initiated a case for allowing the additional exemptions for the approval of the ECC. Tax holiday for the concession holder and operating companies from corporate income taxes for a period of 25 years, exemption of the lenders from income tax on interest and stamp duties in respect of financing agreement, and exemption of the operating companies from sales tax.

The ministry of ports and shipping reviewed the matter in consultation with the GPA and found that subsequent to the draft concession agreement submitted by the PSAI in December, 2006, the new draft agreement was tabled by them demanding additional exemptions and was contested by the negotiating team to the extent that PSAI walked out of the negotiations, the official added.

With the agreement signing date approaching near and with a view to salvaging the agreement, there was no alternative for GPA but to accept the demands of PSAI regarding additional exemptions from sales tax.

In view of the position explained, the ministry of ports and shipping has said that there is no alternative but to accept to fulfill the contractual obligations. In the event of default, PSAI may invoke articles and 7.5.2 of the concession agreement, which may adversely affect the operation of the port.

The article of the concession agreement signed with PSAI states that parties acknowledge and confirm that the conditions precedent are fundamental to the fulfillment of the obligations under and exercise of rights vested by this agreement. Consequently, the party who is to fulfil the condition undertakes that it shall make best effort to fulfil or cause to be fulfilled these conditions precedent (except for the conditions precedent that relates to the free zone business and which shall be fulfilled as and when GPA acquire the required land for this purpose in terms of this agreement) no later than the long-stop-date.

Article 7.5.2 of the concession agreement signed with PSAI relates to the termination of the agreement by concession holder. This article states that concession holder may give notice of the intent to terminate this agreement in accordance with article 7.6 upon the occurrence on any of the events (each a “GPA event of default”) unless an event has occurred as consequence of a concession holder event of default or a force majeure event: (a) GPA’s failure to perform or discharge any of its obligations in accordance with the provisions of this agreement which failure shall have material adverse effect on the rights of the concession holder under this agreement and which failure is not remedied within 180 days of the concession holder’s written request to do; or (b) any representation or warranty made or given by GPA under this agreement found to be false, misleading or incorrect, provided that this causes a material adverse effect on the rights of the concession holder under this agreement and that the reasons rendering the representation or warranty false, misleading or incorrect are not rectified or caused to rectified by GPA within a reasonable time.




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Construction of fishing jetty at Gwadar to enhance seafood export

By Ijaz Kakakhel

ISLAMABAD: The federal government has decided that the existing fish harbour at Gwadar would be used as mini port for cargo handling purpose annexed with the Gwadar deep sea port and to replace the existing fish harbour, the government plans to construct a fish landing jetty and allied harbour facilities at Pishukan, Gwadar.

Official sources told Daily Times here on Tuesday that the project will cost Rs 628.575 million and the provincial government of Balochistan and the federal government will share the cost on a 20:80 basis.

Pishukan village consists of fishing community, which requires basic facilities to enhance the fish catch handing, preservation and trading. At present there is no fish landing jetty or allied structures in these villages for necessary all-weather fish catching. A feasibility study for the new landing jetty and allied harbour facilities has been carried out by the GDA consultants on which the project’s PC-I was based the sources added.

The project was to be implemented in two phases. Phase-I that comprises fish jetty, road works, auction hall, break water and groyne wall was proposed to be completed within two years through the federal PSDP, where as second phase will be completed in 36 months through private sector under BOT (build operate transfer)/BOO (build-operate-own) basis consisting of construction of additional jetty, break water, reclamation works, for fighting facility, repair yard, cold storage, ice plant and packing and processing plant.

Sources further said that the proposed project would give boost to various industrial activities such as boat building, repairs workshops, packing processing and canning of fish, etc. and generate job opportunities. With the construction of landing jetty, there will be an appreciable increase in registration of motorised boat traffic.

After construction of the fish-landing jetty, the fish catch at Pishukan will increases from 9,310 metric tonnes in 2007 to 12,040 metric tonnes per year by the year 2015.

The Pishukan share in fish catch will further increase to 15,560 metric tonnes per year by 2,020 and it will touch the figure of 20,310 metric tonnes per year by 2025.

The sources further said that with increase fish catch activities; road traffic was expected to grow. It has been proposed to provide access roads from the proposed jetties to the coastal highway.

The officials further said that work on the provision of facilities like cold storage and ice plant through private sector should be started simultaneously to optimise the benefits of the project. The GDA should ensure supply of clean water at the two jetties as per their annual requirement.




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Gwadar highlighted as global investors' future port

KARACHI ( 2007-10-17 05:08:41 ) :
Gwadar was highlighted as the future port of global investors at an international conference on 'Free zones, science and technology parks, enterprise zones', jointly organised by World Free Zone Convention (WFZC) and World Customs Organisation (WCO).

The conference was held at the WCO headquarters in Brussels, Belgium, on June 5 and 6. According to a report prepared by Sheikh Javaid, Chairman, Federation of Pakistan Chambers of Commerce and Industry (FPCCI) standing committee on export processing and free zones, who attended the conference, Gwadar was also introduced as commercial hub of the region.

The report, available here on Tuesday, said that the conference was told that Gwadar, when fully operational, would be capable of catering the requirements of international trade between CAS countries, Middle East & Near East and Far East. As a result of the wide coverage by media, considerable interest by investors of the world had been recorded for investment in projects in Gwadar.

WFZC is UK-based international organisation engaged in providing knowledge and information to free zone stakeholders, ie, managers, operators, customs and port authorities, transporters, investors, financial institutions, etc. It thus provides a fora for guiding concerned institutions and personnel not only for establishment of new free zones but also to suggest ways and means to improve the working of existing zones for achieving the targets set for each unit.

The report says that Mike Schmitz, Director, World Customs Organisation, Brussels, mentioned about a policy of understanding and cooperation and said that certain countries were executing examination of goods and documents on behalf of each other to avoid duplication of work at the points of origin and destination.

A similar system has been introduced at Port Qasim for Pakistan's exports to the United States whereby scrutiny of goods is carried out through scanning the containers by a joint team of Pakistan and US customs to avoid re-examining of goods at destination in US. It was also emphasised that simplification of documents and customs procedures should be ensured to achieve faster movement of goods in the supply chain.

Adel Abdel Maged Masoud, First Under-secretary and head of Free Zones sector, GAFI, from Cairo, spoke on setting up and monitoring zone customs bases in public and private zones and compliance issues. His main points for discussions included role of Free Zones relationship between Free Zones and customs bases. Egypt has developed Free Zones with dedication and has provided a distinguished investment regime to the investors.

There are two types of Free Zones in Egypt, namely, the Public Free Zones, and Private Free Zones. There are 1000 units working in Free Zones regime in Egypt. Simplification of procedures and freedom to export and import was also ensured in Free Zones in Egypt.

The report said that this issue is hitting the investors hard in Pakistan these days and it is reported that survival of EPZ units is becoming difficult day by day. Investors are agitating over the regulation of 80-20 and it is said that a considerable number of units in KEPZ have closed down.

Mao Xintang, Vice-Chairman and Secretary General of China Free Trade Zone and Export Processing Zone, said that ShenZhen Special Economic Zone (SZSEZ), established in 1980, was launched as the first Special Economic Zone in People's Republic of China. It is said that ShenZhen's economic growth is among the world's most robust and fastest growing Free Zones and, by 2010, the annual GDP of ShenZhen City would rise to $12000 per capita.

The report mentions that Pakistan's importers have been in contact with ShenZhen Free Zone and have been importing merchandise of a sizeable volume from the zone.

China claims to have following free zones in the country: Export processing zones 59; free trade zones 15; bonded ports 4; bonded logistics parks 8; and cross-border industrial park 1. Special zones of China are seen as roadmap and many countries of the world have followed the special economic zone strategy to give a boost to their economy. These countries include India, Iran, Jordan, Poland, Kazakhstan, the Philippines, Russia, Ukraine and Pakistan.

China is helping Pakistan develop the 'Haier-Ruba' economic zone near Lahore, and another zone is likely to be set up in Gwadar. The conference noted with great interest the Chinese efforts in the area of establishing free zones to support its economy. The Chinese government also encourages outward foreign direct investment (FDI). The outflows amount to $16.1 billion, placing China at 13th position in the world, with stocks rising to $73 billion mark.

The report summarises that free zone concept is claimed to be an ideal situation for the betterment of economy of a country. The world is attracted by free zone ideology, and most of the countries of the world, including China, Pakistan, Bangladesh, UAE and others, introduced and amended their policies so as to induct and follow the ideology.

The world has recognised free zone as an ideal solution. These zones are established under different titles eg export processing zones, special economic zones, and science and technology free zones, etc.

There are about 3000 free zones in the world, and thousands of industries, service units and offshore trading and warehouses are operating under the free zones flag. Special economic zones of China, Panama, UAE and Shannon free zone, Ireland are considered successful zones of the world.

The report concludes by pointing out that departure from public sector control to private sector was suggested by leading advisers, especially in cases where zones are not giving desired results for betterment of country's economy in the form of increased exports and investment.

source: http://www.aaj.tv/ne...s...l&nid=82334



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Work on second phase of Gwadar port to begin by year-end
ISLAMABAD, Oct 25: The second phase of Gwadar deep seaport construction is expected to be started before the year-end by the Singapore Port Authority (SPA) for which it is lining up new investment in the country.

“The government has taken a decision to allow the SPA to undertake the mighty second phase of the Gwadar Port preferably within this year,” Director General of Gwadar Development Authority (GDA) Ahmad Buksh Lehri told Dawn on Thursday.

He said that Phase-1 had cost $298 million and the SPA, the operator of the port which had been given a lease for a long period of time to run it efficiently, was currently working out its investment plan for the second phase.

The government, Mr Lehri said, had given to the SPA 16 acres of land which included a tax-free zone.

Answering a question, the GDA chief said that the SPA had successfully overcome initial problems and that the port was likely to be fully operational in December with three berths handling the ships. However, to handle big ships more berths would be required, he added.

He said that the SPA was being provided all the necessary equipment including cranes and buildings.

“New equipment, provided by the government, is also being installed by the SPA,” Mr Lehri said.

In reply to a question, he said that there was no law and order problem in Gwadar. However, he said that the Coastal Highway, which was damaged by the recent floods, should be re paired on a priority basis.

More warehouses and other equipment were also needed to enhance country’s foreign trade, he added.

Earlier, the Singapore-based operators were told to expedite the work especially after having received a 40year tax holiday despite the concern expressed by other investors and the World Bank and Asian Development Bank (ADB).

The GDA director general said since the government had already been extending tax exemptions and tax holidays in various industrial and dutyfree economic zones, the SPA was also offered a tax holiday.

He said export processing zones were also enjoying certain tax holidays and exemptions and there was nothing exceptional in the case of SPA, which was investing $550 million.

The Gwadar port located in Balochistan is being considered a future trading hub in the region because of being so close to the Gulf region.

Initially, it is expected to face competition from the Iranian port of Salalah, but after the completion of Phase-2 by 2010 at a cost of $840 million, it is likely to become one of the busiest ports in the region. It will provide warehousing, transhipment and industrial facilities for trade with over 20 countries including the Gulf countries, Iran, Central Asian states, India, China and East Africa.

The government has also planned some other concessions for the proposed Export Processing Zone (EPZ) to be located near the Gwadar port for local and foreign investors. There will be customs, sales tax and excise duty exemptions in the EPZ to promote substantial investment in Gwadar.

A number of foreign investors have shown interest in establishing mega refineries, building storage capacity and undertaking other businesses in Gwadar to help expedite the process of industrialisation in Balochistan.

Land for the new international airport has been acquired after giving due payments to the landowners. The government is said to have released about Rs4 billion for acquiring land for the proposed oil city. Prices of land in Gwadar have gone up.

With the completion of Gwadar port, a special industrial development zone, about 30km off the port, will also be set up on 4,000 hectares.

The federal government has also provided Rs700 million to Balochistan to meet water demand of the Gwadar Industrial Estate (GIE) for 15 years by installing a foreign-assembled desalination plant.

The water demand will be met partly by recycling the waste water (irrigation and industrial cooling) and partly by the desalination plant as there is no water resource available in the area.

The Balochistan government has provided 3,000 acres of land, of which 20 acres will be made available for free through the GIE to set up water desalination plant, intake work, storage tanks and other facilities.

There will be approximately 2,000 industrial units in the GIE creating 30,000 jobs. Most of the production will be export-oriented.




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Gwadar Port to get operational with wheat arrival

By By Aftab Maken
ISLAMABAD: The government’s decision to receive imported wheat at the Gwadar Port is aimed at making the port operational and introducing it on international shipping and trade forums.

This will reduce dependency on existing two major ports, Port Qasim and Karachi Port, where larger vessels cannot be handled, and will also provide an alternative source for docking, an official requesting not to be named told The News on Thursday.

Tremendous economic activities will be generated when the vessel carrying 50,000-60,000 tonnes of cargo dock at the port and then about more than 2,000 trucks will be used to transport the imported commodity to upcountry,” said the same official, adding that it would also reduce cost and freight charges of handling the imported commodity.

Offloading of ships carrying imported grain on Gwadar Port would spur the local business and trade including that of hotels and restaurants. Moreover, the local labour would get employment and if the trend continues, the shipping activities at Gwadar Port would help in defeating poverty and other miseries of the Baloch people, they hoped.

To this effect, the government will allow one third of the imported wheat to be offloaded at Gwadar Port for curtailing the cost of importing the commodity, sources in the MINFAL confirmed to The News about berthing of ships at Gwadar port.

The Economic Coordination Committee (ECC) of the cabinet in its meeting on next Tuesday (August 26) will deliberate on the issue as Balochistan Chief Minister, Nawab Aslam Raisani in a meeting with MINFAL requested it to offload some of ships carrying the imported grain at Gwadar Port for the betterment of the people of the province.

The chief minister further asked the MINFAL that it should issue separate wheat import tenders particularly mentioning Gwadar Port as the port of destination, this would generate revenue for alleviating the miseries and economic woes of the people of the province.

The ECC of the cabinet in its last meeting directed MINFAL to have reasonable quantity of the imported wheat shipped to Gwadar Port but the Trading Corporation of Pakistan (TCP) has so far accepted bids destined either for Port Qasim or Karachi Port.

In last year’s wheat imports of 1.73 million tonnes, only one ship with 75,000 tonnes of commodity docked at Gwadar Port, but it was not properly handled and the cost of imported wheat increased manifold.

“We are recommending the ECC to allow one third of the total imported wheat to be offloaded at Gwadar port as it would help the importing agencies to cut cost and freight,” said an official of the MINFAL.

The TCP has so far booked 1.601 million tonnes of red wheat and four ships carrying 160,000 tonnes of wheat have unloaded the imported quantity either at Port Qasim or Karachi Port and the rest of the shipments too are booked for both ports but not for Gwadar Port.

The TCP last year booked imported grain in haste and all the ships carrying imported wheat reached the ports one after the other resulting in non availability of berths at ports to unload the commodity. This caused ships to wait beyond their scheduled time resulting in demurrage claims that TCP paid from the national exchequer, sources in the shipping ministry told this correspondent.

To avoid last year’s crowding at the port, the MINFAL is also recommending the ECC to divert one third of the ships carrying imported grain to be docked at Gwadar port, MINFAL official said.

As the port located in wheat deficit area, so the imported grain could also be awarded to the province to meet its domestic requirement while the remaining would be transported through rail to the rest of the country, he added.



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does anyone know when is the ship comin.


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Gwadar, the gateway to the bright future of Pakistan

Up gradation and improvement of Karakoram Highway (KKH) linking Pakistan with China has already begun. A dry port at Havalian (at the start of KKH) has been completed, this is a significant step for the development and improvement of trade routes with China.

Gwadar has a very significant role not only for Pakistan but also for the whole region. Pakistan’s unique geography and geo political factors in the region have made it one of kind opportunity for Pakistan. Solid commitments by Chinese and Pakistani government with concrete steps on ground, growing interest by Gulf countries and Investors around the globe are indicators of the bright future of Gwadar.
Silent Features• Phase 1 of the Gwadar Port, which is worth of US$ 298 Million has been completed with the assistance of Chinese Government.

• Construction of the second phase of Gwadar port worth of US$ 865 millions shall be completed by 2010.

• The Government of Pakistan further released Rs: 16.3 billions for the development of Gwadar port.

• Export Processing Zone (EPZ) has been planned for assembling plants and other industries.

• Gwadar has been declared a Duty free and tax free port city for 40 years.

• A world class golf resort is also being developed for international golf tournaments.

• Gwadar will provide port, warehousing, transshipment and logistic facilities to over 50 countries.

• An area of 4000 hectors has been reserved for special industrial development zone (SIDZ)

• Gwadar-Quetta railway line is being laid; the main purpose is to link Gwadar with Iran and landlocked central Asian states.

• China is going to setup "China Industrial Zone" of its own in Gwadar.

• Site reserved for establishment of largest Amusement Park in Asia.
• Completion of 600 plus kms coastal highway that runs along unexplored blue water coastline

• Gwadar's new international Airport has been aimed that will be providing excellent facilities for passengers as well as cargo handling facilitates.



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We need More Ports like Gwadar. More the Better..for Pakistan
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Ibrahim Munir


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i dont have a source but i was readin on some blog that KPT has proposed gov to import urea from saudi arabia through gwadar as gwadar is closer to saudia compared to other ports. also gov is considerin in transferrin some of the burden from other ports to gwadar. will be a gud move.



    Zila Nazim

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surly it will be Great move.
Best Regards

Ibrahim Munir


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Gawadar Export Processing Zone not approved
Wednesday, September 24, 2008
By our correspondent

ISLAMABAD: The government has refused to accord approval to Gawadar Export Processing Zone (GEPZ) seeking huge incentives including 20 years tax holiday, saying that the government wants to end the tax exemption culture from the country.

“The decision to refuse the Gawadar Export Processing Zone (GEPZ) with huge incentives came in a meeting of the Economic Coordination Committee (ECC) held here on Tuesday with Prime Minister Syed Yousaf Raza Gillani,” a senior official who attended the meeting told The News.

He said, “The Ministry of Industries and Production had submitted a summary to the ECC for approval of a lucrative package of incentives to attract investment for the GEPZ. In the meeting, Governor State Bank of Pakistan Dr Shamshad Akhtar and Chairman FBR Waqar Ahmad strongly opposed the proposal seeking huge tax exemptions, arguing that if it goes on with the same exemptions, then who will pay the tax. They said that there is a dire need to expand the taxation base in the country.”

In the summary, Ministry of Industries also sought the permission for export of production from the zone to tariff area of the country up to 80 per cent on the payment of normal duties. The package also included zero-rated sales tax on supply of construction materials to the GEPZ investors or development of zone infrastructure. It also included exemption from stamp duty and exemption from import policy orders issued from time to time.

The official said that the ECC also did not subscribe the view of the Ministry of Industries, rather the meeting constituted a committee comprising Advisor to Industry, Deputy Chairman Planning Commission and top officials of the Ministry of Finance and FBR. The committee would look into the demand and furnish its own recommendations in this regard, which would be taken up in the next meeting of the ECC.

In addition to this, ECC also gave a green signal to Fatima fertilisers for 75 mmcf per day gas for its plant that is to be operational on November 2009. The official said that Fatima Fertilisers also sought 35 mmcf per day gas to run its plant on full capacity to produce 1.58 million tonnes of fertiliser, as under the existing allocation it can only produce 1.068 million tonnes of fertiliser.

However, the officials from Ministry of Water and Power sought the allocation of the same amount of gas for 100MW of power plant installed by the same Fatima fertiliser company near Okara. On this, the ECC meeting again constituted a committee consisting of Advisor to Industries, Deputy Chairman Planning Commission, and Ministry of Water and Power to look into the matter and come up with a feasible solution.


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