GWADAR, Feb 6: The deep-sea Gwadar Port will emerge as a central energy port in the region, said Prime Minister Shaukat Aziz after the signing of a 40-year agreement between the Gwadar Port Authority (GPA) and the Concession Holding Company (CHC) — a subsidiary of the Singapore Port Authority — for operating and managing the port. The agreement was signed by Eddie Teh, CEO of the SPA Group, Commodore Muneer Wahid, acting chairman of the GPA, and Aslam Hayat, chairman, GP Implementation Authority.

Federal Minister for Ports and Shipping Babar Khan Ghouri, Balochistan Governor Owais Ghani and chief ministers of Balochistan and Sindh were present on the occasion.

“Gwadar port will become an important and strategic storage destination because it is located near the world’s largest hydro-carbon resources,” said Mr Aziz, adding: “With the passage of time the port will help improve the living conditions of the people of Balochistan. It will also increase job opportunities in the area.

“Gwadar will become an attractive destination for cargo traffic as it will provide better facilities to larger vessels.”

He further said the cost of doing business in Gwadar would be less than in Dubai while it had all prospects to become a support centre for Dubai.

The port will be formally inaugurated by President Pervez Musharraf in March when a cargo vessel will be docked at the harbour built with the Chinese assistance. Mr Aziz did not give a particular date but according to sources it is around March 22.

The SPA, which operates 22 ports in 11 countries will invest $550 million in next five years, said the prime minister.

Duties will not be imposed on the machinery to be imported for development work in the area, he said, adding that plans were afoot to establish a new airport and an industrial zone at Gwadar.

Delving on the government’s plan to develop network of roads and other infrastructure, he said a rail link encompassing the entire country is also being actively considered.

Discussing the technical and financial support, he said, “China has greatly helped us in translating the dream of Gwadar Port into a reality.”

The areas where the concession agreement is to be implemented are terminal and cargo handling operations, marine services and free zone development.

The GPA will receive a fixed share of revenue. About nine per cent has been set for cargo operations and marine services and 15 per cent for free zone business.