Category

Lorem Ipsum is dummy content for printing sdas asdbthe fu Ipsum is dummy content for printing sdas asdbthe fuIpsum is dummy content for printing sdas asdbthe fu

Posts Tagged cpec

Top Developments in Gwadar in 2017

Gwadar Port in Pakistan and the CPEC are equally attractive and interesting idea for foreign as well as local investors. The government of Pakistan has also set up a tax-free industrial zone for the International standard areas in Gwadar. Expected is that the Government will offer more concession to the foreign investors in the coming times. On the other had investors from different parts of the world are showing their interest in Gwadar. The investors specifically from Afghanistan, Central Asia, South Korea, China, Singapore and Japan are showing their interest in the establishment of Industrial Estate in Gwadar.

The Gwadar is set to transform the small coastal town into a multicultural port city. For all the said reasons the property investment is Gwadar is coming up as a profitable investment. The real estate buying and selling are at its peak and the real-estate investors, the businessmen and companies are showing interest in the area. The Gwadar is focused on the upcoming real estate projects in Gwadar and is looking forward to boosting the sale and purchase of land in coming time.

The rich investors are interested in buying industrial plots as well as residential plots, around the city. Both types of lands are offered with different schemes and packages. The fully operational Port of Gwadar is believed to boost the industrialization process in the region and is said to bring a lot of benefits to the world. With a fully functional zone, Gwadar is believed to be an industrial zone that will have a major influence on the economy of the world by facilitating the trade and industrial activities.

The government of Pakistan has planned to establish and promote the industrial zone and opening the major banks’ franchises to facilitate the loan and other financial services to the interested investors.

Planned Setups in Gwadar:

Gwadar has come up with the planned industries and will offer the following facilities to the investors:

• Small manufacturing zones
• Major electronic fabrication and assembly setups
• Wood and metal fabrication and assembly
• PVC housing & extrusion and Re-packaging
• Fish processing & canning and Life engineering
• Textile & garments and Food & flour mills
• Refrigeration & cold storages.

For the said promotion of the Gwadar Port, there are many other planned activities that are in the pipeline. These include; commercial plots, housing schemes, sports services and many others. The master plan of Gwadar includes setting factories that will be offering services to the future manufacturing and other plants that will settle in the area. While on the other hand a wide range of housing schemes are designed for both low and high-income groups that will be linked with the Gwadar Port City.

The Free Trade Zone:

Another prominent feature is the Free Trade Zone and the Export Processing Zone that is said to have a huge potential for investment as well as the development of small, medium as well as large scale industries. These industries are believed to be generating revenue for themselves and the government with a huge profit margin and employment for people in Pakistan.

The Gwadar Port and CPEC are expected to bring a new era of industrial level development in Balochistan as the province has massive industrial potential including fisheries, livestock, minerals and agriculture. By exploiting these key sources of the providence we can generate a massive amount of industrial benefits for the country and the region.

Top Developments in Gwadar in 2017:

New Gwadar International Airport: An uninterrupted transportation and convenient business communication is the core reason for initiating the idea of CPEC. With such an intention, the Gwadar is also meant to facilitate the residents with easy travelling. For this reason, the bus and train routes and the national and International air travelling routes is something a must for the project. For this reason, the Gwadar project is facilitated with a comprehensive International Airport. The Gwadar International Airport Project was inaugurated in April 2018. It is believed to be the largest Airport in Pakistan that acquires an area of 3700 acres. The project has already acquired financial clearance and the project is obtained by a Chinese company that will be executing the idea. Once completed the airport is believed to become a hub for international trading activities in Pakistan.

gwadar international airport

Oil City in Gwadar: Pakistan is rich with natural resources and is believed to offer more such surprises in future as well. Just like the amazing potential of the Gwadar Port City along with the CPEC idea the area will offer a number of other opportunities to the world. Along with many other developments the Government of Pakistan has decided to construct a mega oil city on the Gwadar. This city is believed to acquire 80,000 acres of land. The mega oil city will be used to transport oil to China. This transported oil will be bought from the gulf. This mega oil city will help you reduce to half; the travelling distance, cost and time from the Gulf to China. The Gwadar port city is purposed to store oil for its further transfer to China, via Pakistan. With this route, the oil will be transported to China in time to 7 working days. This project will also be executed by a Chinese company that has already started working on it since August 14, 2018.

Oil city gwadar

The Fiber Optic Project: This is an under-construction project of 820 Kilometers that is laid from China-Pakistan Border to Khunjerab and Rawalpindi. The project was initiated back in 2016 in the city of Gilgit and is expected to be completed by the end of 2018. This line will connect the Transit Europe-Asia Terrestrial Cable Network with Pakistan. The project is currently transmitting the internet traffic through four undersea fibre optic cables. The project is financed by Exim Bank of China (source: Wikipedia).

fiber optic project gwadar

Railway Network Project: As the CPEC places an emphasis on the up graduating of Pakistan transportation infrastructure including building the main line between Karachi and Peshawar supporting the transportation structure of Pakistan. The railway provides direct access to Chinese and East Asian goods of Pakistan’s seaports at Gwadar and Karachi by 2030.

gwadar railway network

, , , , , ,

No Comments

History of Gwadar: Past, Present and Future

Although a few years back the word Gwadar was not known to many but the past few years have changed the fact. Gwadar is one of the most spoke about cities of the world. Gwadar is a port city in the South-Western Cost of the province of Balochistan in Pakistan. The Gwadar city is located on the shores of Arabian Sea. The city is almost 700 KM away from Karachi (the largest city of Pakistan). Another amazing geographic fact linked with Gwadar is that it is near the border of Iran and is situated to the east of Persian Gulf- which is right opposite to Oman. In the past, from 1783 to 1958, the Gwadar port was in possession of Oman.

For most of the history, Gwadar remained a small size settlement where the economy was majorly based on fishing. The strategic value of the location was accepted in 1954 when it was pointed out as a perfect site to be used as a deepwater port by “US Geological Survey”. The potential of the Gawdar port remained unrecognized during different governments of Pakistan till 2001. In the year 2001, the construction of the initial phase of Gawadar was initiated.

General Pervaiz Musharraf inaugurated the first phase in the year 2007 with a net cost of $248 million.  However, even after the construction, the port remained under-utilized for a number of reasons including security concerns, lack of investment, and the failure of management of the government in transferring the land as per commitment to the operator of the port which was “Port of Singapore Authority

By the time Pakistan reached 2015, the government of Pakistan announced a patch up China to develop a mega project of CPEC (China Pakistan Economic Corridor) which was worth $46 billion. The project is believed to a part of China’s One Belt One Road program. “China’s Xi in Pakistan to cement huge infrastructure projects, submarine sales”. Gwadar is the backbone of the One Belt One Road project and about 1.153 billion dollars are said to be invested in the city as a part of the project CPEC (Wikipedia). The aim of this project is to link the Northern side of Pakistan with the Western side of China through the seaport.

The Origin

Just like other parts of Balochistan, the Gwadar city also had some ancient roots that are not clearly approached yet. However, the city shows inhibition linked with the bronze age of the settlement. According to the studies, for a period the city was under the regime of the Achaemenid Persian Empire. The history claims that this area was conquered by the founder of the Persian Empire known as “Cyrus the Great.”

During his journey back to home, the Alexander the Great stepped their feet in the areas which are now known to us as Balochistan. The then consisted of inhabited and Dry Mountains. After the collapse of Empire of Alexander the area ruled by Seleucus Nicator who was one of the generals of Alexander. Later during 303BCE, the region came under the rule of Mauryan after the Seleucus made peace with Emperor Chandragupta.

The Territory of Gwadar:

After a millennium, the Arab-Muslims invade the region and in next century there were the areas was ruled by different powers. While for the next two centuries, the area was ruled by local tribes of Balochistan.  From 1863 to 1879 the area of Gwadar remained to headquarter of the British Assistant Political agent and remained a Fortnightly port for British Indian Steamship Navigation Company. It also worked as the port for telegraph and post office. Later in the 1950s, the port was headed over to Pakistan.

Gwadar Port of Pakistan

Soon after the independence of Pakistan the Balochistan acceded to Pakistan and was allocated as a separate district. At that time Gwadar was not a part of Balochistan. Later in the year 1958, the Gwadar port and adjacent areas were handed over to Pakistan by Muscat. By then it was given the status of Tehsil of Balochistan. Later in the year 1977, the Makran District was upgraded and divided into two divisions named as district Turbat, Gwadar and Panjgur.

September 8, 1958, was that date when Pakistan purchased the Gwadar enclave from Oman for 5.5 billion PKR. The agreement signed stated two important clauses; the first one stated that Balochistan will offer an army recruitment platform for Oman as a result of which Balochis will establish a major part of Omani forces and secondly the resources of Gwadar will be developed in future.

In the year 1993, the Government of Pakistan conceived the plan to develop Gwadar as a major port city and connect it with a rail and highway network. Officially the construction of Gwadar started on March 2002 phase one of which was completed in March 2007.  The port was inaugurated on 20th of March the same year.

Developments in Gwadar:

From the year 2002 to 2007 Gwadar underwent some major developments. In 2002 the NHA (Pakistan National Highway Authority) started production of the 653 Km- long Makran Coastal Highway, this highway was meant to link Karachi with Gwadar via Ormara and Pansi moving on to linking it with all other highways in Pakistan. The project was completed in 2004. In the year 2003, the Gwadar Development Authority started planning and development of the Gwadar for which an authority with the name  “Industrial Estate Development of Gwadar” was formulated to deal with the industrial activities. The three currently functional multipurpose berths of the deep-sea-port have a capacity to handle carriers of 30,000 deadweight tonnage (DWT) ). The construction started in the year 2004. By the year 2006, the Gwadar Development Authority conceived established and adopted the 50-year plan for the City of Gwadar. Later in 2007, the Civil Aviation Authority of Pakistan acquired a huge area to construct a greenfield airport that was named as the New Gwadar International Airport (Wikipedia).

The Gwadar Port:

Since a long time, China has an interest in Gwadar Port. In 2013 the China Overseas Port Holdings Limited assimilated the Gwadar Port. The Gwadar port is very important for China as about 60% of the oil in China comes from the Persian Gulf. This oil is transported by the Ships that travel for about 16,000 KM in the time duration of 2 to 3 months. This journey is full of risks including; bad weather, pirates, or political rivals, along with many others. It is also risky for the only commercial port of China that is located in the Shanghai. Gwadar will help to reduce the risks and distance limiting it to 50000 Km and can also serve China around the year.

China has remained fully involved in designing the project. It has provided about 80% of the cost of constructing the port. More than 500 Chinese workers are working on the port, around the clock.

China is keenly focused on setting up the Gwadar port because they find at advantageous in terms of saving time and security of import and exports. In this regard, China has paid 360 million USD to Pakistan for the expansion and the up gradation of the import and export processing around the year. The transportation will be done by Karakoram Highway China to Pakistan. The Government of Pakistan is highly committed to providing a secure base to China in shape of Gwadar. This will help Pakistan to secure the Gwadar port and to strengthen the Pak-China relationship.

The Culture of Gwadar:

The location and history of Gwadar have given it a unique yet interesting blend of cultures. The Arabic influence on the city can clearly be seen because of the strong impact of Omani era as well as the closeness with the Arabian Peninsula. The legacy os Omani can also be witnessed in the local population of which you can trace the lineage to Afro-Arab and the Zanj Slaves. These people came and settled in the area in the Omani rules. You can also find some remains of building constructed in Omani era.

The Geographic Position of Gwadar in Relation to Oman

Topography:

Gwadar is located on the sandy and narrow strip, with a natural hammerhead-shaped point linked with a coastline of Makran.  The points of the port make two perfect yet naturally curved bays on each side of the point.

The North side of the city and the Gwadar Promontory is flat and barren.  The Koh-e-Mehndi (the white clay) is a prominent exception that is raised sharply from the plans to the Northern-East of Gwadar. Followed by the mega earthquake in 2013, a small island was formed which is located almost 2 KM off the Coast (Wikipedia).

The Population:

The population of the city has increased for about 85,000 as reported in the year 2014. Majority of the people living in Gwadar have their roots linked with the Balochistan.

The Climate of Gwadar:

Gwadar has extreme hot and deserted climate with very little precipitation and massive variations in winter and summer temperature. The ocean had a great influence on the temperature that is lower in summer and higher in winter. On average the temperature in June remains 31 to 31°C while in winters it fluctuates between 18 to 19°C. The uniformity of the temperature is distinctive of the Coastal Makran region.

Also, the wind moving down by the plateau of Balochistan give a cooling influence, otherwise the winter remains pleasant. Winters are shorter as compare to summer. The Gwadar is located out of the monsoon belt. For this reason, it occasionally receives the monsoon rains in the summer season. While in winters there is heavy rainfall due to Western Disturbance. On average the annual rainfall is about 3 inches.

Administration and Neighborhood of Gwadar

Gwadar serves as headquarter for Gwadar tehsil and Gwadr District. While the Gwadar tehsil is sub divided into 5 different union counsels on the basis of administration named; Gwadar Central, South Gwadar, North Gwadar, Pishukan, Sorbandar.

  •  The Gwadar Central in sub-divided into different parts named as; Gazrawan, Komagri, Mohallah Zahoor Shah, Sohrabi, Saleh Muhammad and Usmania.
  •  The South Gwadar is Divided into; Kamari, Mohallah Karim Bakhsh, Mohallah Shahdu Band, Mullah Band, Murad Bakhsh, Sarabi, Sheikh Umar and Tobagh.
  •  The North Gwadar is sub-divided into; Lal Baksh, Mohalla Baloch, Mohalla Mir Abdul Ghafoor and Mujahid.

The Strategic Value of Gwadar

The Gwadar port can help China to work with around the clock active port with security and time efficiency. It will also offer China an attending post to observe the Indian naval activities around the Gulf of Aden, the Persian Gulf, South Asia and Central Asia. It means that it will cover the following regions; Central Asian republics, Caspian Region, Iran and Afghanistan. Among all these Caspian Sea is the most potential region in terms of monetary approaches. At the same time, it offers vital positioning to the area geographically. Iran is one of those countries that are supporting the development of the Port of Gwadar.

Gwadar- The Free Zone

In the past, the economy of Gwadar has mostly remained dependent on fishing. However, with the passage of time and in recent times, the economy of Gwadar has undergone some major transformation resulting in the transformation is a small fishing village in the major Port city of Pakistan. It has helped in enhancing the communication links between all parts of Pakistan.  The 1400 Km Trans-Afghan Gas Pipeline also known as the TAP will be linked from Turkmenistan to Gwadar port. It is believed to be a comprehensive project that will boost the Natural gas dealers of Turkmen to reach the market of South Asia that will lead to many financial benefits for the region overall.

, , , , ,

No Comments

CPEC – How It Can Benefit Pakistan in Short & Long Term

China has always worked as a loyal partner to Pakistan. The history of friendship between both the countries has set many examples in the past. Despite what the world thinks or speaks about Pakistan, China has always stood by its side. A number of initiatives have been taken in the past to support and boost the friendship of both the countries.

An upcoming brainstormed initiative taken by China and Pakistan is the China-Pakistan Economic Corridor- popularly known as the CPEC. Being a mutually advantageous project for both the nations, this initiative is expected to reduce costs of transportation to the Middle East and Europe, for China. The project of CPEC offers both long and short term benefits for Pakistan and China.

CPEC Route Map

Importance of CPEC

We can evaluate the importance of CPEC to China by the fact that it is included in China’s 13th five-year development plan. The CPEC projects are believed to be offering China with an alternate route for supply of energy and a new route to Western China that will support the trade processing. Pakistan also stands to earn benefits with the upgraded infrastructure and the introduction of a reliable, uninterrupted and long-lasting energy supply.

Forbes has claimed that the CPEC is a part of the vision of China to write down the rules of next era of globalization and to help the exports as well as investment engines of China to run, uninterrupted, for years. It is also believed that the project of CPEC is a project that has strategic and economic consequences that demand methodical evaluation.

Now let us move towards overviewing the short-term and long-term benefits this project has in the bag for the bonding countries!

Read also: An Essential Guide To Real Estate Investment In Gwadar

Short-Term Benefits

As per the short-term benefits of this initiative, one of the most important is the fee that Pakistan can charge for transportation of products and goods, which will commence through this trading corridor.

Such benefits are quite similar to which are being reaped by Panama through the Panama Canal, as well as Egypt in the form of the Suez Canal. On top of that, if Pakistan is able to offer the Chinese workers wwith a comfortable and suitable working environment, in order to relocate their labour-intensive industries, the rewards can be higher for the country’s economic condition.

The Long-Term Benefits

When we speak about the long-term benefits which both parties will gain from this initiative we can say that they are concerned with the health and skills indicators as well as the educational development of Pakistan. At the same time they are focused to initiate more investment and funds to the hi-tech industries which are set-up in Pakistan.

Currently, the goods which are being shipped from Central China to Europe have to travel a total distance of 19,132 miles, out of which 16,507 is through the sea, while 2,625 miles are covered by land; which is basically the distance from the Shanghai port to Central China. After CPEC is completed, the goods will only have to travel a total distance of 9,579 miles, out of which 7,847 will be by sea, while 1,750 miles on land,  which is the distance from Karachi to Central China.

Apart from the drastic reduction in the mileage, the time which is needed to ship products and the goods from the already existing route to the route developed after CPEC will be reduced by 50 percent; that is from 50 days to 25 days.

Read also: Why You Must Visit Gwadar: Reasons That You Would Not Like To Miss Out

The Expenses for Businessmen

At the time, the freight charges for every 40 feet container transported from Hamburg to Shanghai are around $2,500 to $3,000. Once the CPEC initiative is complete, these charges for a 40 feet container would drop down to around $1,000. It means that the businessmen would be able to save around 50 to 65 percent of the freight chargers they have to pay, and they Chinese exporters would be able to get their payments in half the time they had to wait before CPEC.

As for the shipment which is coming from the Middle East would also be able to achieve substantial benefits, in terms of time and the transportation costs. Speaking about the Middle East, currently a 40 feet container transported from Central China to the Middle East takes about 12,537 miles to reach its destination, out of which 9,912 miles are by sea and 2,625 are by road. Once CPEC has been completed, the same 40 feet container would take 2,295 miles to reach the destination, in which 545 miles would be from the seaway, while 1,750 are by road. This means that the distance between the Middle East and Central China would be reduced by around 80 percent.

Similar to Europe, the reduced distance of transportation would also cut down the charges for the shipment. Currently, the freight charges from Shanghai to Abu Dhabi are around $2,000 for specifically a 40 feet container, whereas through this route, it takes around 16 days for this shipment to reach its destination. With the development of CPEC, these prices will come down to $200 to $250 for a 40 feet container, and the time would also be reduced to about 2 to 3 days maximum.

Moreover, the CPEC will also be able to offer the shortest route to landlocked nations, such as Afghanistan to China, the Indian Ocean and India itself. On top of everything else, the distance compared to the nearest port of Chabahar would be around 600 kilometers lesser!

Short or long, the CPEC has potentially laid the foundation of benefits for both the parties and is expected to open doors of opportunities in coming future as well. Both the countries are currently working on a number of developmental projects and investments that are focused on reaping long run fruits as the CPEC will touch its completion.

,

No Comments