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    China-Pakistan: Gwadar Port

    The potential of Gwadar Port


    From the Newspaper | Syed Fazl-e-Haider |


    THE Port of Singapore Authority (PSA), the operator of Balochistan’s Gwadar Port, is likely to quit the project after Islamabad failed to meet obligations under the 40-year port-handling agreement signed in February 2007.

    The PSA’s exit will brighten the prospects for China, which has already shown keen interest in taking operational control of the port.

    What has so far prevented Gwadar, located 70km east of the Pakistan-Iran border, from becoming fully functional as hub port in the region? Both the government and the Singaporean firm are in default of commitments under the 2007 concession agreement. The government had committed to ensure the connectivity of the port through the construction of highways linking it not only to the rest of the country but onwards to Afghanistan, China, Iran and the Central Asian Republics. The government also failed to provide 2,250 acres of land to the PSA for the development of an industrial zone as per its commitment.

    The PSA, meanwhile, had undertaken to spend $525m in five years but during the first three it invested nothing. It is unwilling to make any investment without getting free-of-cost land that would cost the government at least Rs15bn.

    The government’s failure to give land to the Singaporean operator for the construction of a warehousing facility has turned the port into a white elephant, with both the government and the PSA losing millions. In the absence of a warehousing facility, no trans-shipment of containers can take place as there is no backspace for storage. The port lacks road and rail connectivity and its usage has so far been restricted to bulk cargo such as wheat and urea. The cost of doing business at Gwadar is more than double as compared to elsewhere: cargo-handlers charge double for their services because of the distance.

    Last year, the Supreme Court issued a stay order against the Gwadar Port contract barring the PSA from transferring immovable property of the Gwadar Port Authority to any private party and allowed the government of Balochistan to be a party to the case. If the port operation deal with PSA is cancelled by the court, China would likely replace Singapore.

    Beijing has been pushing Islamabad to give it control of Gwadar’s seaport. In December 2010, China offered the Balochistan government that it would construct 20 more berths and make the port fully operational if it took charge. In that case, China would simultaneously become the builder and operator of the port, which could become a key strategic node for Beijing to step up its presence in the region.

    China has learnt at least one lesson from the US-Iran tension over the Strait of Hormuz and the Syria crisis: without significant naval presence in the Indian Ocean or the Arabian Sea, it will not be able to exercise influence in the oil-rich Middle East.

    Gwadar Port could be used for the Afghan Transit Trade and also potentially for direct military supplies to Afghanistan, where China is increasing its stakes. After the drawdown of US forces in 2014, a Chinese naval base in Gwadar would help Beijing to source direct military supplies to Afghanistan. The port could turn from a commercial venture into a strategic asset for China.

    China is ambitious about having a significant naval presence in the Indian Ocean. Could it be dreaming of ultimately having a nuclear submarine or aircraft carrier homeport in Gwadar, which would enable it to monitor naval patrols by the US and to expand its regional influence? That would, at the very least, require massive funds; it may not be out of place to mention that China’s defence budget is up to $106bn this year.

    Gwadar Port is, however, not viable for trans-shipment and transit until Afghanistan is connected by road and rail. The prevailing uncertainty on the political and security fronts in Afghanistan and Balochistan is a significant setback.

    What has so far impeded China from carrying out its ambitious plans is the worsening security in Balochistan. Baloch nationalist parties contend that the proposed uplift programmes in Gwadar reflect Islamabad’s plan to settle outsiders there which, they believe, would change the demography of the province.

    Security is the key issue affecting the implementation of mega-projects in the province. In May 2004, three Chinese engineers were killed and nine others wounded in a terrorist attack in Gwadar. In 2009, China shelved its $12bn oil-refinery and oil-city project in Gwadar due to security concerns. China is presently in ‘wait and see’ mode, closely watching developments.

    All Gwadar needs to emerge as a regional trans-shipment hub is sincere effort on the government’s part. It was the government’s inaction, meanwhile, that left the military more or less in charge of handling the Balochistan situation, which has further complicated the issues in the province.

    Balochistan faces multi-faceted violence, including a separatist insurgency and violence along ethnic and sectarian lines. The SC recently observed its disappointment over the federal and provincial governments’ failure to control the worsening law and order situation.

    Yet Balochistan has massive natural endowments which, if used rationally, could give the country an economic fillip. Gwadar Port could facilitate trade among at least two dozen countries, including those in the Persian Gulf, the Central Asian States, Iran, East Africa and so on. The port has the potential of becoming a very trade-friendly facility, with its 4.7km-long and 206m-wide approach channel, 595m-diameter turning basin, three 600m-long multipurpose berths and other cargo-handling equipment.

    What is needed is the creation of a secure environment that will serve long-term objectives associated with Balochistan’s economic development. Critical to this is giving the local people a stake and the fair distribution of development gains. In a state of real security, one feels economically, socially, politically and culturally secure: security in all aspects.

    The writer is the author of Economic Development of Balochistan


    The potential of Gwadar Port | DAWN.COM

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    Senior Member Wattan's Avatar
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    It has potential to be very good and like dubai if we do the right things

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    Administrator Aryan_B's Avatar
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    China set to run Gwadar port as Singapore quits

    Sep 5, 2012

    China set to run Gwadar port as Singapore quits
    By Syed Fazl-e-Haider

    KARACHI - China will take over the Pakistan's strategically located Gwadar Port in southwestern Balochistan after Singapore decided to pull out of a 40-year port management and development contract signed in 2007.

    Port of Singapore Authority (PSA) and its partners - Aqeel Kareem Dedhi (AKD) Group of Karachi and the National Logistic Cell (NCL) - are ready to sell their share of Gwadar Port to China Harbour Engineering Co Ltd (CHEC), a state-owned company, and have been allowed to quit the Gwadar Port's development


    contract after the government failed to transfer 584 acres (236. 3 hectares) of land under possession of the Pakistan Navy for the free zone at the port.

    "The denial of land at Gwadar Port forced PSA to leave the port, which will be taken over by a Chinese company," Business Recorder reported Ports and Shipping Minister Babar Khan Ghauri as telling the senate's standing committee on ports and shipping last week after the government issued PSA with a notice to quit the contract five years after taking up the challenging project.

    The deal between the government and the Singaporean company was thwarted by the security situation in Balochistan, which hindered PSA from investing the money it had promised for the development of the port and off-shore infrastructure, but PSA decided to give up on the project since problems were compounded by a Supreme Court decision in December 2010 to issue a stay order against the allotment of Gwadar land to a foreign company, following petitions from individuals.

    Gwadar Port was built with Chinese assistance of more than $220 million. After taking control, China will simultaneously become the builder and operator of the Gwadar Port.

    PSA, which owns 60% of shares in the project, and its partners, who own equal 20% stakes, have asked China Harbour for their investment plus interest of approximately $25 million, according to media reports, in a proposed transaction that local experts say is a typical share-purchase deal. Under a concession agreement, withdrawal from by any of the parties - either the Pakistani government or PSA - would mean they had to pay a penalty. While both were reluctant to withdraw, the transfer of shares to the Chinese company resolved the impasse.

    Sardar Fateh Muhammad Hassani, who chaired last week's senate committee meeting, indicated that China would invest US$10 billion to develop the port and manage its operations, without giving details about the proposed agreement. Negotiations between the shareholders and Chinese officials over the sale had been going on since last year, according to The News. While some amendments will be made in the concession agreement for the new operator, it is actually the ongoing land dispute between the government and the navy that has stalled the development of the port for the past five years.

    The committee recommended that the navy should take the available 300 acres of land from the government of Balochistan as an alternative and vacate 584 acres of land at Gwadar Port. Naval authorities, however, informed the committee that the navy was a legal and legitimate owner of 584 acres of land at Shamba Ismail area in Gwadar, which was allocated to it against payment by the Balochistan government for defense purposes.

    Gwadar port was supposed to compete internationally to get a larger share in the world cargo. This required efficiency on the part of port operators and the installation of modern equipment. Unlike in Karachi and at Port Qasim, Gwadar Port was to totally depend on transshipment cargo. Since it was thought that only experienced, competent and neutral operators could turn Gwadar into a regional hub port - with returns to match its strategic advantage - the government of former President Pervez Musharraf in 2007 gave management and operational control of the port to PSA for 40 years.

    PSA International operates 20 port projects in 11 countries including Singapore, Belgium, Brunei, China, India, Italy, Japan, Netherlands, Portugal, South Korea and Thailand. PSA Singapore Terminals is also the world's busiest transshipment hub, handling about one-fifth of the world's total container transshipment throughput, and 6% of global container throughput. The company says it provides shippers with a choice of 200 shipping lines and connections to 600 ports in 123 countries.

    The Chinese-built first phase of Gwadar Port included three multipurpose berths of 602-meter quay length, one 100 meter-long service berth, and 4.35 kilometers of deep-water channel, alongside roads, operational craft and equipment and shore-based port buildings and facilities.

    China sees Gwadar as the gateway for its products to international markets. The port can play a major role in serving as a corridor for energy, cargo and services among Central Asian countries, the Gulf and other surrounding regions. As the port operator, Beijing may restart a $12 billion oil refinery and oil city project that was shelved in 2009.

    Strategically located at just 624 nautical kilometers to the east of Strait of Hormuz, the port is not only China's most favorable choice for oil trade, but it would also help it get commercial refueling and repair facilities. Located at the mouth of the Persian Gulf, the Arabian Sea port is likely to expand China's influence in the Indian Ocean, which is the strategic link between the Atlantic and Pacific Oceans in terms of communication and oil transportation in the region. That makes Gwadar a key node in the new great game, with control of proposed transnational energy pipelines the name of the game.

    Control over Gwadar Port offers China a key card in pipeline politics, as future of all the major transregional pipelines battles may hinge on having a terminus for major pipelines, including Iran-Pakistan (IP) and Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipelines. China is interested both in monitoring the supply routes for its rapidly increasing energy shipments from the Persian Gulf and also in opening an alternative route via Pakistan for import/export trade serving its vast Muslim-majority Xinjiang Autonomous Region.

    Presently, 60% of China's imported oil comes from the Middle East and 80% of that transported to China through the unsafe Straits of Malacca.

    Syed Fazl-e-Haider (Syed Fazl e Haider) is a development analyst in Pakistan. He is the author of many books, including The Economic Development of Balochistan (2004). He can be contacted at [email protected].

    Asia Times Online :: China News, China Business News, Taiwan and Hong Kong News and Business.
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    Retired AgNoStIc MuSliM's Avatar
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    It was a bad decision to go with PSA - not necessarily because PSA was not a competent entity to perform the required work, but because Pakistani planners should have factored in the impact of potential insecurity and the impact of the US led WoT in Afghanistan and the proximity to Iran - aside from Russia and China, I can think of very few countries that would continue investing and completing projects given the dynamic geo-political and security situation in the region.

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    Administrator Aryan_B's Avatar
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    Quote Originally Posted by AgNoStIc MuSliM View Post
    It was a bad decision to go with PSA - not necessarily because PSA was not a competent entity to perform the required work, but because Pakistani planners should have factored in the impact of potential insecurity and the impact of the US led WoT in Afghanistan and the proximity to Iran - aside from Russia and China, I can think of very few countries that would continue investing and completing projects given the dynamic geo-political and security situation in the region.
    I think it was American pressure on Mushy that lead to this deal with PSA.

  6. #6
    Banned RaptorRX's Avatar
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    Basically PSA asked for security of Pakistan Navy to protect Gwadar port and other development, in which Pakistan Navy rejected. Who is wrong?

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    Retired AgNoStIc MuSliM's Avatar
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    Quote Originally Posted by RaptorRX707 View Post
    Basically PSA asked for security of Pakistan Navy to protect Gwadar port and other development, in which Pakistan Navy rejected. Who is wrong?
    Port security should be handled by the provincial government and local law-enforcement, not the Pakistan Navy, unless of course it is a Pakistan Navy port or houses important Pakistan Navy facilities.

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    Senior Member KingKong's Avatar
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    Quote Originally Posted by AgNoStIc MuSliM View Post
    Port security should be handled by the provincial government and local law-enforcement, not the Pakistan Navy, unless of course it is a Pakistan Navy port or houses important Pakistan Navy facilities.
    Dont wish to be disrespectful but are the provincial government and co. competant to handle security of this magnitude? Perhaps a joint operation would be more beneficial for all concerned?

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    Administrator Aryan_B's Avatar
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    I got the impression that this was a contract that both PSA wanted to get out of with each other. Otherwise I think if Pak govt & PSA wanted they could have compromised.

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    China confirms takeover of Pak's Gwadar port
    PTI | Sep 4, 2012, 07.44PM IST

    Chna today tacitly confirmed reports that it was taking over the strategic Gwadar deep water port in Balochistan.

    BEIJING: Ahead of Pakistan Premier Raja Pervez Ashraf's visit here, China today tacitly confirmed reports that it was taking over the strategic Gwadar deep water port in Balochistan, which it may convert into an oil pipeline hub to augment its energy supplies from the Gulf.

    Asked about Pakistan Shipping Minister Babar Khan Ghauri's remarks that China may take over the port operations with USD 10 billion investment following pullout of Singapore Port Authority (SPA), Foreign Ministry spokesman Hong Lei said both countries are engaged in cooperation to build infrastructure projects. "China and Pakistan are neighbours of traditional friendship. Over the years, China and Pakistan have engaged in wide-ranging cooperation in all fields including infrastructure construction with a view to helping Pakistan improve people's well-being and promote social and economic development," Hong said in a written response to a query from . "Such cooperation is also beneficial to regional stability and development," he said, without directly referring to Babar's comments.

    He also did not say whether the issue would be discussed during Ashraf's visit to attend the World Economic Forum 2012, also known as Summer Davos, starting from September 11 at Tianjin city. The forum would be inaugurated by Chinese Premier Wen Jiabao, who is expected to hold talks with Ashraf on its sidelines. Pakistani officials have long been pushing for China's takeover of the port to make it an oil pipeline hub for China connecting with the Karakoram Highway.


    China confirms takeover of Pak's Gwadar port - The Times of India

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    China-Pakistan: Gwadar Port

    China confirms takeover of Gwadar port: Report



    China tacitly confirmed reports of taking operational control of Gwadar deep-water port from Singapore’s PSA International, reported news agency Press Trust of India on Tuesday.

    According to the PTI report, China may convert the port into an oil pipeline hub to augment its energy supplies from the Gulf.


    The report quoted China Foreign Ministry Spokesperson Hong Lei as saying, “China and Pakistan are neighbours of traditional friendship. Over the years, China and Pakistan have engaged in wide-ranging cooperation in all fields including infrastructure construction with a view to helping Pakistan improve people’s well-being and promote social and economic development.”

    Earlier, Minister of Ports and Shipping Babar Ghauri said in an interview that Pakistan had reached an agreement with PSA where they have decided to leave the port and discussions on a possible Chinese investor were underway.

    Pakistan Prime Minister Raja Pervaiz Ashraf is also due to visit China to attend the World Economic Forum 2012 in September. During the visit, Chinese Premier Wen Jiabo is expected to hold talks with Ashraf, the report stated.

    Gwadar, built with a loan from China, is close to the Pakistan-Iran border and the Strait of Hormuz, through which much of the Gulf’s oil exports are carried by ship to international markets.

    China confirms takeover of Gwadar port: Report – The Express Tribune

    -------------------------
    China may take over Gwadar port from Singaporean firm – The Express Tribune

    Pakistan may transfer operational control of the Gwadar deep-water port from Singapore’s PSA International to a Chinese company, The Financial Times has reported.

    “We have reached an agreement with PSA, where they have decided to leave the port at Gwadar. They are in discussions with a possible Chinese investor,” Minister of Ports and Shipping Babar Ghauri told The Financial Times in an interview.

    Gwadar, built with a loan from China, is close to the Pakistan-Iran border and the Strait of Hormuz, through which much of the Gulf’s oil exports are carried by ship to international markets.

    PSA began running the port five years ago under a contract valid for up to 40 years, but is now preparing to leave.

    PSA declined to comment but Mr Ghauri and Singaporean sources confirmed that PSA’s imminent handover of control was triggered in part by Pakistan’s failure to fulfil its commitments, one being the building of a motorway link to service the port. Other differences included the government’s failure to transfer land for the port’s expansion.

    “There is a decision for PSA to leave and we have given our consent,” said Mr Ghauri, who declined to name the potential Chinese replacement.

    However, officials said strategic as well as commercial interests played a part in the change.

    China’s assumption of the port contract “will be a landmark development, both for Pakistan and China”, said a senior government official. “This has great value for China,” he said. “We believe the Chinese may use their presence at Gwadar to lay down a pipeline in future for transporting Middle Eastern oil to western China.”

    Another Pakistani official said the port contract would be “the second most vital Chinese investment in Pakistan after the Karakoram highway”, the road linking Pakistan to western China.

    Gwadar port, which had a total investment of $248 million, received $198 million in funding from China, according to the commerce ministry in Beijing.

    Published in The Express Tribune, September 1st, 2012.


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    Senior Member Express's Avatar
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    China-Pakistan: Gwadar Port

    ISLAMABAD: Pakistan on Wednesday approved a deal transferring from Singapore to China the management of the strategically located deep-sea Gwadar port on the Arabian Sea.

    China provided about 75 per cent of the initial $250 million in funding for the construction of the port in Pakistan’s southwestern province of Balochistan.

    It is currently being operated by Singapore’s PSA International, but needs further development work to become fully operational. According to PSA’s Gwadar website, there has been no ship in the port since November.

    “The cabinet today gave approval to transfer Gwadar port operations from Port of Singapore to Chinese Overseas Port Holdings Limited,” Information Minister Qamar Zaman Kaira told reporters.

    “Both the companies have settled their deal,” he said, without giving a timetable for the transfer.

    Kaira said that Singapore’s PSA International could not develop or operate Gwadar “as desired” and said he hoped that under new management the port would soon contribute to Pakistan’s flagging economy.

    “The Chinese will make more investment to make the project operational,” Kaira said.

    China, one of Pakistan’s closest allies and its main arms supplier, has also funded ports in Sri Lanka and has been approached to help build a port in Bangladesh.

    Pakistan’s former defence minister Ahmad Mukhtar said in May 2011 that China had agreed to take over port operations at Gwadar.

    He also said Islamabad would be “more grateful to the Chinese government if a naval base was being constructed at the site of Gwadar for Pakistan”. At the time, China’s foreign ministry said it was unaware of any such request.

    Pakistan approves Gwadar port transfer to China | Pakistan | DAWN.COM

  13. #13
    Member SamranALI's Avatar
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    ok if its China otherwise Pak should develop it itself, may be through Karachi Port Trust.

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    Senior Member Express's Avatar
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    Gwadar Port control transferred to China

    ISLAMABAD - Besides giving approval to Strategic Trade Policy Framework 2012-15, the federal cabinet gave formal go-ahead to Pak-Iran Gas Pipeline Project and handing over of Gwadar Port management from Port of Singapore to a Chinese company.Giving briefing on the decisions taken by the cabinet, Federal Information Minister Qamar Zaman Kaira said a number of MoUs with various governments were also approved. The minister, highlighting the performance of his government, said it was a singular achievement of the government that it had brought down the inflation and had doubled the revenue generation since assumption of power.Earlier, in his opening remarks at the cabinet meeting, Prime Minister Raja Pervaiz Ashraf made it loud and clear that the demand to dissolve the Election Commission of Pakistan was unconstitutional, adding neither the chief election commissioner nor any member of the ECP could be removed in an unconstitutional manner. “I want to convey a message to the anti-democracy elements that we shall not succumb to their intrigues. We shall not let anyone derail democracy. We gave and are ready to give any kind of sacrifice for the country and democracy,” he added. Ashraf said no one would be allowed to derail the country’s democratic setup, adding Pakistan was going to have elections in a few weeks.Kaira said the cabinet had accorded approval to handing over of Gwadar Port management from Port of Singapore to China Overseas Holding to make the port operational for the collective betterment of the people of Balochistan.To a question, he said it was the decision of Port of Singapore which was earlier tasked to make the port functional and the federal cabinet had just accorded approval to the deal.“Both the companies have settled their deal,” Kaira said, without giving a timetable for the transfer.Kaira said that Singapore’s PSA International could not develop or operate Gwadar ‘as desired’ and said he hoped that under new management the port would soon contribute to country’s flagging economy.“The Chinese will make more investment to make the project operational,” Kaira said.Kaira said the cabinet had also given formal approval to the Pak-Iran Gas Pipeline Project and also allocated funds for the project while a four-member committee, headed by the federal finance minister, had been constituted to monitor progress on the project.Kaira revealed the cabinet had also approved legislation to further strengthen the office of ombudsman. Explaining the point, he said the term of the federal ombudsman would be fixed at four years, besides granting financial and administrative autonomy to him. The ombudsman would be empowered to initiate contempt proceedings for any violation, he revealed. Earlier, such powers only vested in the office of the federal tax ombudsman.He further said that under the proposed legislation, it was made obligatory for all the government departments to comply with the orders of the ombudsman within 15 days while it would also be made mandatory that all the cases filed in the office of the ombudsman should be settled within 45 days.To another question, Kaira admitted that the country was facing a power shortage due to which the people were facing difficulties, but quickly added the PPP-led government had initiated a number of projects to add inexpensive electricity to the system and mentioned Bhasha Dam, Neelum-Jhelum and a few other projects which would help ease the crisis on completion.To another question, he said the government was not averse to dialogue and the five-member committee would hold talks with all the stakeholders, including the leader of opposition in the National Assembly on holding of elections of the national and provincial assemblies the same day. The committee would complete the task assigned to it in next eight to 10 days, he pointed out.The federal information minister was all praise for the political forces and said the incumbent National Assembly would be remembered in the history for the remarkable job it had done, especially, the legislative business it had conducted during the past five years had no parallel.During the cabinet meeting, Law Minister Farooq H Naek and Interior Minister Rehman Malik exchanged hot words when the former objected to the statement of the latter about imminent terrorist attacks in Karachi and said that it had panicked the people of the port city and adversely affected the overall economic activities in the country. Malik, responding to him, said it was his duty to keep the people abreast with threats. He also gave a detailed briefing to the cabinet members on the overall law and order situation with particular reference to the volatile situation in Karachi.

    Gwadar Port control transferred to China | The Nation

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    Pakistan Pakistan

    Zardari urges use of Gwadar port for trade

    ASHGABAT: President Asif Ali Zardari on Thursday called for greater regional cooperation in areas of counter-terrorism and energy and urged the Central Asian Republics to use Gwadar port for trade.

    Speaking at the opening session of the International Conference on Nauroz here at the Rukhyat Palace, the president said the region was of great geostrategic importance and underlined the need for robust road and rail links to enable its countries to fully exploit their natural resources.

    He said Pakistan was ready to play its role in this regard. “We are willing to facilitate transportation of liquefied natural gas (LNG) from Central Asia to South East Asia and other world markets. The latest and modern seaport of Pakistan at Gwadar is the shortest route for Central Asian states to the Arabian Sea,” Mr Zardari said.

    He said that Gwadar port offered excellent facilities for export of LNG and other products. “We are also ready to provide safe transit of piped gas to neighbouring countries.”

    Pakistan was keen to implement the Turkmenistan-Afghanistan-Pakistan-India (Tapi) and the Iran-Pakistan (IP) pipeline projects, Mr Zardari said. He pointed out that work on the IP project was inaugurated recently.

    He also underlined the need for strengthening regional cooperation in the areas of security and counter-terrorism. Pakistan firmly believed that peace and stability was a prerequisite for economic progress and development.

    “We are keen to promote friendly relations with all, especially our neighbours and other regional countries. We are ready to work together with them for peace, progress and prosperity in the region,” he remarked.

    President Zardari said that Pakistan and the Central Asian states were members of the Economic Cooperation Organisation whose main objective was to build infrastructure in the region.

    He said that “connectivity through rail, road and air links was important not only within the region but also beyond”.

    The president said the presence of leaders of regional countries or their representatives at the conference reflected the underlying strength of their common cultural and religious values and traditions.

    “Our common traditions are deep-rooted in history,” he said and termed Nauroz a symbol of the common heritage. “We particularly need closer cooperation in trade, communications, transportation, energy and infrastructure,” President Zardari said.

    He congratulated Turkmen President Gurbanguli Berdimuhammedov for the excellent arrangements made for the festival and thanked the people of Turkmenistan for their warmth and hospitality.

    The conference was also addressed by Iranian President Mahmoud Ahmadinejad, Tajik President Emomali Rehmanov and Afghan President Hamid Karzai.

    On the occasion, President Berdimuhammedov thanked the delegations for visiting his country and celebrating with him Nauroz that he said symbolised a new dawn.

    He said Turkmenistan had always worked for good neighbourly relations and that neutrality was the cornerstone of its foreign policy.

    He said that national, regional and global development could only take place in an atmosphere of peace and tranquillity.—APP
    Zardari urges use of Gwadar port for trade | Pakistan | DAWN.COM

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    Senior Member Felix's Avatar
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    Re: Zardari urges use of Gwadar port for trade

    Just making election noises. Gwadar isnt going to be functional for years. Why is he making big noises here?

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    Senior Member Red Dragon's Avatar
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    Gwadar Port takeover by China blessing for Pakistan economy: Haleem Siddiqui

    Gwadar Port takeover by China blessing for Pakistan economy: Haleem Siddiqui


    03/30/2013

    By Amanullah Khan

    Capt Haleem Siddiqui, Chairman Marine Group of Companies, former minister for water and power has described the presence of China at Gwadar Port as a blessing for Pakistan economy.

    Talking to Pakistan Observer in an exclusive interview Capt. Haleem Siddiqui said that so far Gwadar Port is far away from economic hub of Pakistan due to absence of infrastructure communication facilities which are a prerequisite to for supporting the port operations and a strong link with the rest of the economic centers of the country.

    "When I say the take over of Gwadar Port by China is a blessing for the economy of Pakistan it means that China has assured to develop hinterland infrastructure to link the port with rest of the country. When the hinterland is developed it will have a great spill over the economic activities that would be taken up by China for shipments of goods to and from Western part of China which is comparatively less developed when compared to Western China and China desires to develop its western part as well for which it will be using our Gwadar Port"

    Capt. Haleem Siddiqui who carries international reckoning in port and shipping expertise besides running Pakistan's most prestigious container terminal called Pakistan International Container Terminal (PICT) with the support of the World Bank and currently on the way of developing Pakistan's first dirty cargo terminal at Port Qasim said that actually China needs Gwadar Port more than Pakistan to carry out its development plans in the Western China which is far away from Eastern coast and transportation of goods would be much costlier than what it would cost through Gwadar Port.

    So far Western China is the most deprived part of that country because all the industrial developments have been taken place in the Eastern part of China which has well equipped import and export facilities. Even if the Chinese products transport to its eastern part through Gwadar Port it will be cheaper in terms of money and time consumption.

    So for the forthcoming industrialization in West of China would be in need of Gwadar port for import and export purposes Hence the take over of Gwadar Port by China will generate a great deal of economic activity in this part of the world and that would have a simultaneous spill over for the economic growth of Pakistan.

    China besides development of hinterland infrastructure around Gwadar will also be developing motorways and have already developed a dry port at SUST border. Chinese have also converted Shah rahe Resham by making it a 40 ft wide motor way which can

    two containers side by side for transportation. Apart from other things the western part of China is much closer to the access of oil and gas from Gwadar port, they can also lay a pipeline for conveying gas and oil from Gwadar Port. This will generate employment, and services sector in Pakistan and benefits to the people of Pakistan especially in Balochistan would be enormous and that would be opening of prosperity to Balochistan so far the most deprived province in the country.

    He agreed that to carry out all these projects we need political stability, honest and dedicated leadership having direction in their minds to develop Pakistan rather than working for their own interests.

    There is a flow of economic benefits in Pakistan especially in Balochistan however this require capacity to explore and guide these economic flow for the benefit of the country, therefore we need a leadership having capacity to exploit plenty of economic resources to give a turn around to the economy of Pakistan.

    Economy is flowing like water in Pakistan the only thing required to grab this flow of economic opportunities. It is just like water if you would store the water you will not develop dams, you will be at the losing end.

    Capt. Haleem Siddiqui currently more involved in some projects of national importance like Bulk handing cargo terminal at Port Qasim which will be exclusively hand coal to cater to the need of power generation, cement plants and other industrial units.

    So far the capacity of Bulk Terminal Cargo was 8 million tons of coal but in view of growing demand as most of the power generating units are in line to use this terminal, the marine group has expanded the capacity from 8 million tons to 12 million tons.

    He said that the forthcoming elections can be a turning point for the economy of the country if the people of this country used their common sense and elected a sincere leadership which is the need of the hour.

    He foresees that Pakistan Muslim League (N) has the capacity to steer out the country of the troubled waters under the leadership of Mian Nawaz Sharif who is all in all devoted for Pakistan. H e remarked that some people are talking about avoiding the tested people but they should remember that " A known devil is better than the unknown devil" so instead of embarking for an adventure people should think in term of Pakistan and Pakistan alone which our identity, he remarked.

    Gwadar Port takeover by China blessing for Pakistan economy: Haleem Siddiqui - Power Engineering
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  18. #18
    Senior Member Hafiz's Avatar
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    Re: Gwadar Port takeover by China blessing for Pakistan economy: Haleem Siddiqui

    Pakistani Chini Bhai Bhai
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  19. #19
    Senior Member Hope's Avatar
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    Pakistan and China to sign MOUs on development of strategic Gwadar port

    Pakistan and China to sign MOUs on development of strategic Gwadar port


    The Foreign Ministry in Islamabad said Sunday that Pakistan and China will sign several memorandums of understanding during Chinese Premier Li Keqiang's visit to Pakistan, starting Wednesday.

    Foreign Secretary Jalil Abbas Jilani said as many as 12 MOUs will be signed, including three linked to the development of the strategic Gwadar port on the Arabian Sea, which China has been managing since February.

    According to local newspaper reports, Pakistan wants China to commit to the construction of an international airport at Gwadar as well as improved infrastructure, linking Gwadar port with Pakistan's railway and national motorway at the city of Ratodero in Sindh province.

    Another important MOU to be signed during Li's visit relates to the development of a 1,000-megawatt hydropower project in Pakistan-administered Kashmir, which has been hampered by financial and bureaucratic difficulties.

    The Chinese premier is also expected to discuss promotion of the Chinese language and the opening of Chinese cultural centers across Pakistan.

    Li will arrive in Islamabad on Wednesday for a two-day visit to discuss details with Pakistani President Asif Zardari.



    http://www.globalpost.com/dispatch/n...-strategic-gwa
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  20. #20
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    Re: Pakistan and China to sign MOUs on development of strategic Gwadar port

    Excellent.

    We need to put our relations with China on the maximum.

    WE also need to convince Saudi Arabia to have joint ventures with China.
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