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Importance of Gwadar Port
- 2. History In 1783, the Khan of Kalat granted over Gwadar to Taimur Sultan. On 8 September 1958, Pakistan purchased the Gwadar enclave from Oman for $1 million. Development of a deep- water port along the coast of Baluchistan has been under consideration by the Government since 1965. Hostile activities in 1965 and 1971, when the only port of Karachi, which catered for the entire trade of Pakistan, because vulnerable to aggression and was further supplemented by India’s missile attack on Kemari oil installation area. In 1965, the government of Pakistan constituted a five member's committee headed by Rear admiral (Retd) Akbar H. Khan. Technical and financial feasibilities therefore were under taken resulting in decisions for the development of Gwadar Port by the Govt. of Pakistan. The Project started on 22 March 2002, is on fast track and will Inshaullah complete in schedule time i.e. March 2005. Location Located at the entrance of the Persian Gulf and about 460 kilometers from Karachi. Gwadar is located on the western end of coast of Baluchistan and have 600 K m long coastline along the Mekran coast of the Arabian Sea. Importance of Gwadar Port for Pakistan Selection of Gwadar for construction of Deep Sea Port. While carrying out feasibility study for development of Gwadar port both Karachi and Bin Qasim were also considered for such development but found not attractive to major shipping agencies due to remoteness from main shipping routes, limitations of draft and comparatively long turnaround time. Due to these reasons Gwadar was selected as the site for 3rd commercial port for Pakistan. Geo-Strategic Importance Gwadar port is located about 267 NM West of Karachi. Because of its ideal location at the mouth of gulf and opposite strategic choke points of Strait of Hormuz and Gulf of Oman the port is visualized to become a regional hub serving incoming and outgoing commercial traffic of Middle East and Gulf countries. The new port of Gwadar will supplement Karachi Port and Port Qasim. It will attract transit and trans- shipment trade from over twenty countries including Sri lanka, Bangladesh, Oman, UAE, Saudi Arabia, Qatar, Iraq and Iran. These countries may open their warehouses in Gwadar for export of goods and storing of imported goods for later shipment to their countries. Access toCARs . Gwadar Port located in proximity of ArabianGulf and Central Asian Republics provide it unique opportunity to serve both. Pakistan needs to capitalize on them through better diplomatic ties with Arab states and CARs. It is therefore anticipated that oil
- 3. reserves and other resources of CARs would gradually become the focus of world attention in coming years. However, in case of “exports to and from CARs” a peaceful and stable Afghanistan is must. The port will also help in promoting trade with Gulf States possessing 63% of world’s oil reserves and will prove instrumental in promoting trans-shipment essentially of containerized cargo besides unlocking the development potential for hinterland. The most important factor that makes Gwadar Port strategically unique is the location with respect to other major ports in the region, which are all located on the other side of the sea. Gwadar port being towards north can easily provide services and facilities to CARs, Afghanistan and China. Upcoming Fishing Harbor/Industry Planned fishing harbor/industry linked with this port will facilitate efficient exploitation of our 960 KM of long coast which would give boost to fish and crab exports and would promote food processing industries as well. Gwadar could also be a potential source of gas and oil exploitation. These areas clearly indicate the vast potential which should be exploited and will help contribute towards national economy. Instability in Gulf Gulf region and CARs contain one of the largest oil and gas resources of the world respectively. Gulf countries in particular, have capitalized on it by constructing major commercial centers with bulk port facilities. Pakistan, could not cash on this opportunity earlier due limited resources which Gulf countries did and so have well established ports these days. Gulf presently is badly exposed to world due instability in region and in case of blockade of Gulf due to any reason, the Gwadar port would become more important due to only choice left. Beside this, sour relations of Iran with western countries and her territorial disputes with Iraq are enough reasons for international community to opt for Gwadar rather than any Iranian port in future. Gwadar Port is therefore expected to act as a vital link to China, Afghanistan and Central Asian Republics throughout the year. Due to these factors Gwadar is going to be the necessity of major shipping competitors as it is the most efficient route to Indian Ocean for world markets. Port Related Facilities Construction of under mentioned facilities/industries is directly linked with the construction of Gwadar Port and will provide employment opportunities for its locals and the region. Trade pact with Tashkent Considering importance of trade from CARs vis -a-vis up coming Gwadar port. Govt of Pakistan (GOP) has very rightly concluded a trade pact with Tashkent. In this Pakistan and Uzbekistan have agreed to enter into a trilateral transit trade agreement with Afghanistan to benefit from the Gwadar port facility and land routes. As per the joint communiqué issued after meeting of reps of both sides on 29-30 Dec 2005, a ‘Joint Ministerial Commission’ has been formed to formulate details/trade quantum and the modus operandi.
- 4. Interest of Countries on Gwadar Port CHINA Gwadar is the shortest, cheapest and safe oil transport route for China. Shortestand cheapestroute fortrade with Westerncountries and West Asia. Balance of power in Arabian sea and Indian ocean OMAN Oman, the next door neighbor, is likely to profit most from this project by capitalizing on the trade from China and the CARs. Therefore, Oman’s Government is taking a lot of interest in the project. Western countries & Russia Trade with Asia will get free from Russian & Iranian influence. Russia will not prefer the economic independence of central Asian countries.Russia It self in try to getwarm waters in a diplomatic way Afghanistan Fast and cheap trade favorable for stability of Afghanistan. Central Asian countries want stability in Afghanistan for fast trade Singapore US influence on Malacca. China will get an alternative route. Port economics of Sri lanka, Malacca (Singapore) and India will get strongly effected INDIA Following threats of India due to Gwadar port. Gwadar will be a boostfor chains economy which will make china a strong economic power in front of India. China support for Pakistan navy and establishment of naval air bases and navel installations in Indian ocean. Block aid by china. fuel/oil lines under china control