Gwadar Essay

8/9/2019 Gwadar Essay

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Name: Wafa Tariq Bahria University BBA 6-E [email protected]

Name: Wafa Tariq

Email Address: [email protected]

Business Potentials of Gwadar Port

Gwadar port lies at the south-west coast of Baluchistan province. It is a port which is near to many

wealthy countries such as United Arab Emirates and Oman. It has been a part of our country since 1958

but no significance was given to it as Pakistan is already blessed with two ports- Port Qasim and Karachi

Port but due to the up growing problems of these ports, Gwadar port has showed the capacity to cope

up the growing demand resulting to be a third seaport for Pakistan.

Gwadar has an immense potential for attracting both domestic and international tourist with a unique

landscape. The mud hillock, the God gifted landscape looks as if carved by an artist. The two hammer

heads of Gwadar and OMaraare matchless. The turquoise sea water with golden sand beaches facing

south is unparalleled. The beaches can be used throughout the year.1

Gwadar is Baluchistans chanceto come out of the typical feudalism and a primitive, caveman mindset.

It can turn out to be important step. If it wants to make 6 million residents of that city introduced to

others, it has to be properly fed and raised up. It is like a new baby right now. Proper take care of this

place can bring revolutionary changes to our economy. The development of this port would not only stir

the economy of Pakistan but can also support other development initiatives.

Gwadar port has gained attention of many countries in terms of business and social relations due to its

prime location close to Strait of Hormuz which joins the Persian Gulf and Gulf Of Oman. Strait of Hormuz

1Gwadar- The future of Pakistan

http://www.pakboi.gov.pk/index.php?option=com_content&view=article&id=626:gwadar-the-future-of-

pakistan&catid=44:latest-news&Itemid=310


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is a passage through which Worlds oil transits occurs.If this port is taken care and exploited to its

extent, it can become the most important port for the Middle East and for the Asia region. It would

connect the Great Asian Dragon (China) with the Oil-rich Arabs.

In Pakistani research article Gwadar Deep Sea Ports Emergence as Trade and transportation Hub

Zahid Anwar highlighted the forecasted problems and the potential benefits likely to be come up with

the existence of Gwadar Port. He pointed out that this port will reduce Pakistans dependency on west

and it will provide a new horizon for Middle East and Central Asian resources.

The Government has offered many housing schemes which have been attracting a large number of

foreign and domestic investments toward its development and infrastructure projects. It has given boost

to many profitable and lucrative investments. The view and location of Gwadar Port has brightened the

investment possibilities in Gwadar real estates.

Some big investors have entered the Gwadar real estate market offering housing schemes for small and

medium enterprise. We are expecting minimum four to six time high premium by investing Rs40 million

on Gwadar land, said an owner of housing schemes on the condition of anonymity, adding: The spiral

in real estate value would emerge and the demand and prices of property substantially would shoot up

with passage of time.2

Gwadar port has opened many new horizons for the unemployed people and has built many job

opportunities. The establishment of local industries and attraction to foreign investors has made it easy

to have developments in every field. This development requires new techniques and resources which in

turn makes new job opportunities.

2Defense Pakistan- http://www.defence.pk/forums/economy-development/1232-gwadar-jewel-crown-

9.html#ixzz2KnT1nXSm


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Trade and business are two most essential components that cannot be demolished no matter what the

expenses are or what hazards the economy is going through. Various ways of transportation along with

the linked trade routes, play a vital role in increasing the import export of the country. Gwadar being a

major port city of Pakistan also serves as a strategic regional hub for commercial traffic from Middle East

china, Srilanka etc.

The location of Gwadar Port can run the whole World system. It can converge and diverge the world

businesses. If we compare Dubai with Gwadar, Dubai lacks in this area only because it doesnt have

capacity to embrace all ships. The transit cargo can easily be undertaken from Gwadar and transported

to any part of the world in a short span of time, in comparison to other ports.

These days Economic strength has gained much importance then the military power to judge any

countrys strength and potential and the most important means of trade is carried through Seas.

Countries which have seaports are known as strong countries and hence they influence other countries

to build relations with them.

Gwadar port has all the facilities available in view of transportation. For this type of port, any industry is

feasible because it will have constant flow of goods. Being the main port, it will have raw materials as

well as finished goods to be processed. These industries will flourish the economy of whole Pakistan by

spillover effect.

Gwadar Port can earn a large amount for Pakistan by being a means of transit for other countries.

According to S. Frederick Starr, it is estimated that Pakistan could earn around $600 million only from

India as a transit fees of IPI gas. As far as China is concerned, Gwadar port is just 2500km away from

Sinkiang while its own port is 4500km away. China southern provinces can be developed by finding

shorter access to Indian Ocean for its export.


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Through Gwadar port, the gas and oil deposits of CARS can be built. Countries who are short of energy

can be easily supplied LNG from Gwadar. Hence it can be termed as Energy Port

United Nations review of Maritime Transport (2006) reports, The world merchant fleet expanded by

7.2% to reach 960.0 million deadweight tons (dwt) at the beginning of 2006. World container port traffic

continued to expand at the rate of 12.6% during 2004, reaching 336.1 million Twenty-Foot Equivalent

Units (TEUs). Ports of developing countries handled 137.0 million TEUs, or 40.7% of the total. 3The same

Trade Potential and Industrial Development in Gwadar review of UN for 2004 indicated that the world

container traffic of around 300 million TEUs is likely to be double by the year 2015. 4

The development of Gwadar project would be beneficial for the country in terms of wealth as well as

economically. Unemployment will be reduced along with the increment in investment opportunities,

helps in peak season overflow of incoming and outgoing cargo.

If we focus on the business interest of other countries in Gwadar port, we will note that India, Iran,

China, Afghanistan has been finding their own interest in the existence of Gwadar port. India is in dire

need of energy resources because of the demanding economy. The only access it has is through Wagah

Border of Pakistan. According to Express Tribune, Pakistan granted India to flow its good through its

ports in 2010 but the growing controversies and disputes has made road access to be a far cry5

Since China and Pakistan relations are very good from the beginning and China has helped in every

crucial phase Pakistan has gone through, it is also supporting Pakistan for the development of Gwadar

Port because this port will be a doorway for China to strengthen its weak provinces and to shake hands

3United Nations Conference on Trade and Development (UNCTAD), Review of Maritime Transport 2006,

http://www.unctad.org/Templates/WebFlyer.asp?intItemID=3969&lang=1

4United Nations Conference on Trade and Development (UNCTAD), Review of Maritime Transport2004,

http://www.unctad.org/en/docs/rmt2004_en.pdf (accessed 29 December 2006)5Rana Shahbaz India finds route to Kabul via Pakistani seaports, The Express Tribune, July 20, 2010.


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with other Gulf countries as this port could also be the part of String of Pearlswhich is Chinese Sea

Lines of communication.

This term String of Pearls was first used by the defense contractor Booz Allen Hamilton to describe the

Chinese maritime strategy as:

Chinas growing interest and influence from South China Sea through the Indian Ocean and on to the

Arabian Gulf has been described as a Strings of Pearls. Apart from Gwadar, other pearls in Chinas sea-

lane strategy are port facilities in Maldives, Cambodia, Bangladesh, Thailand, Myanmar and the South

China Sea.6

According to Senior Government Official, Chinese petroleum industry has indicated an interest in

shifting its excess capacity to Gwadar, bringing in estimated investment of $13 billion.7

The growing relation of China with Pakistan has threatened USA and India as they are afraid that

Gwadar Port will become a naval base in near future for it prime location. The construction of

International Airport at Gwadar has built new horizons for the Pakistan economy.

On the other hand, Iran being the target because of its nuclear program sees Gwadar port as a safe

means to export its oil and gas to India, China and other oil deprived countries.

Keeping in view the importance of Gwadar Port, Government of Pakistan has declared it as a free

economic zone in terms of taxes for around 40 years which has attracted more investors and has helped

explore vast potential of natural resources hidden in the area. This port will also lead to the

development of heavy and large-scale industries, petrochemicals and manufacturing sector in near

future. Pakistan is already strategically located and this seaport has not only enhanced commercial

6(Fair C. Christine, Under the Shrinking U.S. Security Umbrella: IndiasEnd Game in Afghanistan, The Washington

Quarterly, 34:2, 179-192, http://www.twq.com/11spring/docs/11spring_Fair.pdf, (accessed on December 6, 2011) 7Gwadar Private Scheme Information Center - http://gwadarprivatescheme.wordpress.com/page/2/


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worth but has helped in development. It has made the access to the Central Asian States more

convenient.

Fishery Industry of Gwadar Port is one of the oldest and most important economic activities in Gwadar

district. The villagers of Gwadar Port have been doing it since centuries. It has the availability of 70,000

tons of fishes. This fish business is building vacancy for many uneducated people of Gwadar; creating

employment.

Gwadar is also rich in fisheries, being an anglers bay for centuries, no less. The 600 km long coastal line

has a potential to fish and crab exports and accompanying food-processing industries (Hashmi 1999).

It is expected that Gwadar port will be able to unlock the potentials of our own country as well as the

neighboring countries. It will not be beneficial to promote trade for Persian Gulf states only but will also

facilitate cargo but still it needs at least 8 to 10 years to be fully developed to enjoy the real benefits of

Gwadar port.

According to The Port Industry8, The definition of successful hub port requires meeting the demands of

shipping lines. These demands comprises of concessions to global operators, lower port tariffs, quality

services, accommodation of super large ships and consolidated port operations. Gawadar port will have

to meet these demands to attract business.

Gwadar port has the potential to enhance all type of business activities irrespective of the cost. Gwadar

port has the capacity to import and export all items because the means of transport is available here

and is linked with almost all countries and trade routes.

The Gwadar project can provide job to thousands of people of the country in a short span of time, as

everything new has to be developed and there will be a large requirement of human resource.

8www.unescap.org/ttdw/Publications/TFS.../pub.../pub_2377_ch3.pdf (accessed December 9, 2011).


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Developing new projects in the country has far reaching benefits in comparison to loans and outside

jobsbegging for each and every penny and job.

Gwadar has the potential to flourish from every angle, whether it is about fishing, transiting,

manufacturing, tourism or any other business activity whether known today or emerging with the help

of ever developing technology. Merely the construction of Beautiful Seaport will not serve the purpose

and cannot flourish trade and other business until we explore all the potential of Gwadar.

If the situation of Gwadar port is considered and the business is considered, the weak road and rail links

within the cities of Pakistan and Baluchistans situation itself are the biggest hindrances for any business

activity to be carried out. The relations of some specific tribes of Baluchistan with the government and

the prevailing circumstances have also affected ports business potential.

In order to have successful business future, it is important to develop infrastructure such as rails, roads

and other communication networks. Local industries should be developed as well as taken care of in

order to boost volumes of export and import and most importantly the law and order situation of

Baluchistan and Afghanistan should be coped with in order to have connection with other countries via

road and rails.

Concluding the essay, for any nation, economy is the most powerful and essential element to strengthen

the stability of country. We look forward to see Gwadar port generating revenues for the country,

attracting foreign investors and opening new horizons for upcoming industries with new job

opportunities. Though Gwadar Port is capable of transiting enormous amount of trade goods but it faces

competition with the developed ports of the area. A strategic plan should be made to make it a

competitive project.

Gwadar Essay

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