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Handover of Gwadar port
After years of languishing, Gwadar port is finally set to be handed over to a credible operator who has signalled a willingness to also invest in the associated infrastructure to bring the facility into operation. This is a good development and deserves to be received with optimism.
Thus far the port is handling less than 3pc of the cargo that Karachi does between its two harbours.
Also read: Gwadar Port to become operational in May, senate committee told
The main reason for this has been its relative isolation from the country’s transport infrastructure such as roads and railways as well as its inability to serve as a home for a large number of skilled workers, which are required to operate a port.
The city of Gwadar lacks the water resources, as well as housing and other services such as educational and health facilities to provide for a large workforce.
It is connected to the rest of the country via a single road that leads to Karachi, which makes shipping goods there more expensive than Karachi since the cost of overland transport is far greater. Without these investments, as well as warehousing and other storage infrastructure, the port would be destined to languish.
Also read: Call to resolve issues hindering Gwadar Port’s completion as full-fledged facility
But all that is about to change, we are told. In February, the port was handed over to the China Overseas Port Holding company as part of a larger transition towards making it operational. Issues surrounding the acquisition of land from the navy and coastguard were also resolved, and over 2,000 acres are set to be transferred to the port authorities for building an industrial park. Additionally, the Chinese have agreed to build the road infrastructure connecting the harbour with Sukkur and an international airport, along with a Gwadar Economic Free Zone, although details of these commitments are not yet known. The agreements required to initiate this work are reportedly going to be signed during the visit of China’s President Xi Jinping soon.
There is little doubt that the move to make Gwadar port fully operational will have a transformative impact on Pakistan. Still, there are good reasons to keep the optimism controlled, and to be mindful of the challenges ahead. For one, much of the engagement with China is being seen in Pakistan through an emotional lens, as friendly assistance by a brotherly neighbour. In fact, much of this assistance is coming on commercial terms, and the Chinese have been known to walk away from large projects in Pakistan when they believe that the authorities here have failed to live up to their end of the bargain. There is much that needs to be done by Pakistan to make the Chinese opportunity a reality, and there are question marks hanging over the government’s ability to do so. Instead of undue optimism, it would be better if more energy were invested in doing the homework that is necessary to successfully see this project through.
Published in Dawn, April 14th, 2015
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Comments (33) Closed
"For one, much of the engagement with China is being seen in Pakistan through an emotional lens, as friendly assistance by a brotherly neighbour." A reality check but please this term "brotherly". China is a communist country & we are an Islamic Republic. We could be friend with benefits but no brothers.
for augmenting the speed in economic sector the operation of port is necessary.
There is an Iranian port of Chabahar, which India is building to get access to Afghanistan and Central Asia. Thus, Gwadar port will be readily bypassed by regional countries sans China.
"If you build it they will come" is not a good strategy, and does not guarantee success. Failure is written all over it.
Keep fingers crossed. Chinese are known to be averse to taking any undue financial risks. And Pakistanis are known for not fulfilling their financial commitments.
Yes we can , trust the chinese as they are best in the world in infrastructure development soon gwadar will be envy of the world, handling more commercial traffic than singapore.
It will have same fate as sports complexes made by China due to Olympic games.
@shamain - The port has barely started operations and you think it will handle more traffic than Singapore? Sir, have you ever been to Singapore?
Gawadar is a dream project for Pakistan future!
Gawadar Port once made operational will boost the economy and enhance security of both Pakistan and China.
On reflection, China will realise that it is foolish to get involved in an insurgency ridden area. I fear that Gwadar has missed the boat. That boat is now trying to dock at Chahbahar where India is spending $million.
Why is the media not discussing the commercial terms involved in appointing an operator. Were global tenders floated to attract the best offers ?
@Muhammad Imran Yousafzai Gawadar is a dream project for Pakistan future
and from decades every pakistani is dreaming to come it true
@Gaurav Arya Chinese want to get rid of Indian ocean and also avoid Singapore port and want to switch to Gawadar. Its in their best interest and when there is an interest Chinese do it and do it remarkably. However, this will be one of the biggest and most difficult infrastrcuture development that will involve drilling into K2 and sailing on blue waters of Gawadar. Secondly, China will be benifiting these inroads @ Pakistan debts.
So this is the gwader port that everyone in pakistan is getting so excited about?? 4 cranes in front of the sea and with the desert on the other side. Good luck!
Exciting!
Good job Nawaz Sharif
Gwadar's only usefulness is its conversion into a huge warehouse complex. Chinese can bring in their goods, store it there ,wait for orders and ship it out to the middle east, Africa or Europe. Gwadar cannot have any other useful purpose except being a transhipment port, and its doomed to failure as it will go down well with the Govt. of Dubai, Iran or India
@Ghazanfar Sanpal Agreed and no doubt China has vested interests in this project which would ultimately benefit us... This is the other surface of the coin which is missing here.
@Ghazanfar Sanpal - Sir, do you know that Road Freight is 3.7 times as expensive as Sea Freight? By the way, can you share the source where you read "Chinese want to get rid of Indian ocean and also avoid Singapore port and want to switch to Gawadar".
@Feroz - In 2007, Port of Singapore Authority (PSA) won the tender as the ther bidder walked away. In 2011, PSA ran out of patience and prefer to walk away because of: 1. Pakistan's failure to build infrastructure. 2. Governor of Balochistan challenged the deal in the Supreme Court. 3. The Chinese, who had spent 75% of the cost to build the port, were unhappy for not getting to operate the port. In 2013, Gwadar port was handed over to the Chinese without any bidding process and any public contract.
@Mohammad Saleem. Chinese interest in the Gawadar is primarily for access from Western China to sea waters. It's not for the Central Asia. India may continue building port in Iran.
It is good that China which is a nonmuslim industrialized and our neighbour country has been handed the gwadar port. It does not actually matters who develops the port but the thing that really matters is the amount of developement and progress it will create and subsequently the growth in the employement oppurtunities in the future. It is true that we are not able to undertake such huge project locally, because they require international partnerships specifically the developing countries like us.....
Pakistan is surrounded by brotherly countries except India. How bless?
@Amir Bangash China's security based on insecure Gwadar that is in Baluchistan, Pakistan?
"There are question marks hanging over the government’s ability to do so. Instead of undue optimism, it would be better if more energy were invested in doing the homework."
Certainly Dawn has not been remiss in providing a timely caveat to this project. It IS a commercial enterprise in which both parties are expected to benefit. The fact that one might benefit more than the other is of little consequence now.
As long as Pakistan is not a net loser and even if it emerges with a commensalistic relationship it is still a worthwhile project. This is my humble opinion as a Pakistani.
UAE will not be happy to see Gwadar developing.
@Gaurav Arya Never been there, where is it .
@BRR Infact I agree. This is was one of the reason for slump in Dubai in 2008 to 2010
@shamain If you think that Benchmark of Quality is Chinese things, Ma'am Good Luck.
China. China. China. What role does Pakistan play? The East India Company built ports in the coastal villages around what are today Calcutta and Madras as a favour to the local rulers. We as a nation have a skewed sense of history and that will be our undoing.
@shamain Trust the Chinese! Is there any self-esteem left in this nation?
@khattak - brothers? like our Islamic brothers in UAE who threatened us because we would not do their bidding in Yemen?
China is a reliable friend -one of the few that Pakistan has left.