Future Opportunities Gwadar Port CPEC
Gwadar Port has been partially operational since 2007. Gwadar forms the crux of the CPEC project, as it is envisaged to be the link between China’s ambitious One Belt, One Road project, and its Maritime Silk Road project. In total, more than $1 billion worth of projects is to be developed around the port of Gwadar by December 2017. Future opportunities in Gwadar port CPEC are vast.
China will grant Pakistan $230 million to construct a new international airport in Gwadar which is to be operational by December 2017.The provincial government of Balochistan has set aside 4000 acres for the construction of the new $230 million Gwadar International Airport which will require an estimated 30 months for construction, the costs of which are to be fully funded by grants from the Chinese government which Pakistan will not be obliged to repay.
The city of Gwadar is further being developed by the construction of a 300MW coal power plant, a desalinization plant, and a new 300-bed hospital.Plans for Gwadar city also include construction of the East Bay Expressway – a 19-kilometer controlled-access road that will connect Gwadar Port to the Makran Coastal Highway.These additional projects are estimated to cost $800 million and are to be financed by 0% interest loans extended by the Exim Bank of China to Pakistan.
In addition to the aforementioned infrastructure works, the Pakistani government announced in September 2015 its intention to establish a training institute namedPak-China Technical and Vocational Institute at Gwadar, which is to be developed by the Gwadar Port Authority. The institute is to be completed by March 2016 at the cost of 943 million rupees and is designed to impart to local residents the skills required to operate and work at the expanded Gwadar Port.
The CPEC project envisages major upgrades and overhauls to Pakistan’s transportation infrastructure. Under the CPEC project, China has announced financing for $10.63 billion worth of transportation infrastructure so far; $6.1 billion has been allocated for construction “Early Harvest” roadway projects at an interest rate of 1.6 percent.The remainder of funds will be allocated when the Pakistani government awards contracts for construction of road segments which are still in the planning phase.
Highlighted in red is the route of National Highway 35, which is to be completely rebuilt and upgraded under the CPEC agreement. Highlighted in blue is the 175-kilometer road between Gilgit and Skardu which is to be upgraded to a 4-lane highway.
The 184 kilometer long M-4 Motorway between Faisalabad and Multan does not fall under the scope of CPEC projects but is nevertheless considered vital to the CPEC transportation project. It will instead be financed by the Asian Development Bank and the Asian Infrastructure Investment Bank and will be the first project jointly financed by those banks.Further funding comes from an additional $90.7 million grant announced in October 2015 by the government of the United Kingdom towards the construction of the portion of the M4 Motorway project.
The Karakoram Highway south of the city of Mansehra will also be upgraded into a controlled-access highway to officially be known as the E-35 expressway. While it is considered to be a crucial part of the route between Gwadar and China, the E35 will not be financed by CPEC funds. The project will instead be financed by the Asian Development Bank with a $121.6 million grant from the United Kingdom towards the project.Once completed, the E35 Expressway, the M4 Motorway, and Karachi-Lahore Motorway will provide continuous high-speed road travel on controlled-access motorways from Mansehra to Karachi – 1,550 kilometers away.
The first phase of the expedited project will focus on upgrading the Multan to Peshawar section, which will then be followed by the Hyderabad to Multan section, and finally by the Hyderabad to Karachi section.
THE FUTURE OF GWADAR
AN ADDITION OF A BRIGHT CHAPTER
The Gwadar Port is one of the two or three Deep-Sea ports of South Asia or the World. Gwadar is a port of deep waters and it is its great virtue. It entails more capacity than that of Karachi as well as Port Qasim and a ship of DWT3500 volume has been anchored here. A Mother vessel that weighs almost five lactones can be anchored here easily. This area will prove to be the busiest center for import & export of Central Asian countries, Gulf States, Afghanistan and China. That is why investors from across the world especially China are offering huge projects of heavy investment. It is being anticipated by the experts that the GDP rate of Pakistan shall rise up by 50% courtesy Gwadar Port shortly.
Besides, the international and domestic airport has been built at Gwadar. Gwadar International Airport will get the status of the biggest airport of the country. A 653Km long modern and spacious Makran Coastal Highway along the coast of Gwadar has been completed. The salient features of this port are as follow:-
- Construction of 3 multipurpose berths
- Construction of a 4.5 km long approach channel
- Construction of a 100-meter long service berth
- Export of minerals and livestock on a vast scale
- Construction of trans-shipment center
- Construction of PC Hotel on the Koh-e-Batil for the tourists is complete whereas the construction of the remaining hotels is underway.
- Oil refineries and petrol chemical complex
- Access to central Asian countries through Highways and railway
- Setting up vast industrial zones and export processing zones
GWADAR—WHATEVER EXISTS IN THE WORLD—EXISTS HERE
China is also setting up an atomic powerhouse of 600MW on the Makran Coast as well as nuclear hydrology complex that could meet all the water and power needs of Gwadar. A 910-Km long railway line shall be laid from Mastung or Nushki and Dilbadin to Gwadar at a cost of Rs.180.2 million. The project has been launched and shall be completed by 2018. Gwadar shall be linked to the national railway network owing to this project. The Government of Pakistan with a huge financial assistance of Oman has completed the project of the 1000-bed centrally air-conditioned hospital.
GWADAR HAS GOT THE STATUS OF A GIFT FOR THE WHOLE OF PAKISTAN AND A GAME CHANGER IN THE REGION
Prime Minister Nawaz Sharif
The prime minister of Pakistan foresees an important role of Gwadar in the growth of foreign exchange reserves and economy of Pakistan in the near future. To him, Gwadar should be declared a duty free port. In this connection, in his address to the National Assembly, he has urged upon all the political leaders to have consensus on this issue and devise a comprehensive policy to achieve this goal.
GWADAR PORT: AN ERA OF NEW DIMENSIONS
Gwadar Port is to be built in two phases and after completion of Phase I, it was formally inaugurated on March 20, 2007. Construction work of Phase II is in full swing and it will see the light of the day within the next few years. As per the agreement inked during the previous government, supervision of all the matters of the Gwadar Port is being done by China.
IRAN AND TRADE OPPORTUNITIES
The work on the agreement by Iran to supply gas to the Makran Coast, in particular Gwadar, has been completed. Iran has also expressed interest in setting up an oil refinery with the capacity of producing 400,000 barrels per day at a cost of $4 Billion dollars in Gwadar. Iran has also completed the gas pipeline to supply gas up to Gwadar whereas the construction work on the pipeline to be completed by Pakistan is also being started.