Posted by: pakistanthinktank | November 28, 2009


What is Chinese Interest in Gwadar? : Posted by Akhtar Rao Gwadar observer

Gwadar City is the Dream Project of Pakistan

Key Note on Gwadar Progress and Development:

Gwadar project 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.

Investment in any Project in E.P.Zone  Gwadar is an investment with a 20 years Tax Holiday facilities and  trustworthy, reputed company committed to excellence and confidence and in a location which is already focus of the world.

Which are the countries directly benefited by Gwadar?

Because of unique geography, Gwadar virtually benefits all countries in the region. In today’s increasingly interdependent world it would not be wrong that indirectly it benefits the whole world. However, some of the important countries directly benefited by Gwadar beside Pakistan and China are as following:

a.      Tajikistan. A land locked country that will get access to international waters for its Oil and Gas exports and other imports.

b.      Uzbekistan. Again a land locked country, greatly benefited by Gwadar.

c.      Turkmenistan. Same as above.

d.      Afghanistan. Afghanistan has been historically dependent upon Pakistan for its sea routes. Present reconstruction efforts need more and more materials, but the existing port facilities already under pressures from Pakistan’s needs find it difficult to manage. Besides, through Gwadar the access to international waters would be further reduced to great advantage of Afghan reconstruction.

What is Chinese Interest in Gwadar?

China has a great strategic interest in Gwadar. Following are the important ones:-

a.      China is heavily dependent upon the oil from the gulf, at present this oil passes via a very long route, through the straight of Malacca under US influence. After this oil has reached the Shanghai or the Chinese East Cost, it has to be transported thousands of miles in land to West of China. By using Gwadar port and than Karakoram Highway (KKH) its much safer, cheaper and shorter route to west of china.

b.      Middle East is very important region in the world because of its Oil Reserves and large markets. China has a natural dependence on this but does not have means to influence it. Government of Pakistan has already committed to providing a Navel Base to China in Gwadar. This will not only help secure the Gwadar but also take the Pakistan China Friendship to new heights.

c.      Chinese Goods will find an easier, shorter and secure route to Middle East increasing profitability and increasing trade.

d.      China will greatly benefit from the industrial zone by setting up industries close to the markets.

Chinese Commitments:

It is important to understand the Chinese commitments which are indicative of importance that china attaches to Gwadar. China has very strongly committed to Gwadar project, because of her interests. Following are the major inputs from the China:-

a.      China has been instrumental in design of the project.

b.      China is providing approximately 80% of the cost of Port in shape of grants and soft loans.

c.      Over 500 Chinese workers have worked on the project on 24 hour basis to complete the port setup. There are still a large number of Chinese workers and engineers working on the project.

d.      China has further committed to provide money and resources as and when needed.

e.      China is setting up a Dry Port at the Pak China border to take advantage of shorter route to sea through Gwadar.

f.       China has paid US$ 360 million to Pakistan for expansion and up gradation to all weather traficability of Karakoram Highway linking Pakistan with China. The contract has been awarded to Frontier Works Organization, who has also started the project.

g.      Feasibility and engineering studies to connect China with Gwadar through pipeline and railway track has already begun. This railway track also has the significance of being an engineering marvel of the world.

What is International Significance of Gwadar?

Another angle to look at Gwadar is its significance and effect to rest of the world. Following are the major developments in this regard.

a.     India is threatened by Gwadar as this new port and associated developments will help increase the influence and significance of Pakistan. This development also brings Pakistan and China more close. A stronger Pakistan with higher stature in the international world is not welcome to India. India is also weary of increased dependence of CAR’s, Afghanistan and China on Pakistan, with obvious benefits to Pakistan. Pakistan will become an important player in the region through Gwadar and India is troubled by the very thought.

b.    This is the best and most advanced port in the whole region, it is therefore getting heat from many corners. In reality this is going to be to the benefit of every one. Shorter and more economical route to CAR’s and Afghanistan is especially going to be beneficial to India who eagerly looks to increasing trade with them.

c.     Turkmenistan is a country blessed with natural gas and oil. But being land locked, it can’t benefit from them. Trans Afghan Gas Pipeline (TAP) from Turkmenistan to Gwadar, the long dormant project that hopes to pump Turkmen natural gas to markets in south Asia is finally ready to step off the drawing board. This project is being developed by CENTGAS.

d. Kazakhstan is also a country with lot of Oil but no means to access the international market. A pipeline is also planned to transport this oil to Gwadar and than rest of the world.

e.      Many more companies in the world from various countries would be setting up their businesses to take the advantage of State of the art world class port the best in the region, with cheap labor and close proximity to the huge Middle East market.

f.       Due to good geography and unscathed sand beaches, tourism and recreation resorts have good potential and large multinational companies are taking up locations for the purpose.

oil prices also expose their plans in the area.