Gwadar the Golden Gateway
22
Transcript of Gwadar the Golden Gateway
GWADAR
Gwadar THE GOLDEN GATEWAY is situated on the borders of Arabian Sea and lies in the
Balochistan Province of Pakistan Persian. Its 600 KM long coastline is one of the most
gorgeous coastlines of the world with shining blue water and marble white sand. Gwadar is a
new heart line, a new commercial hub for the world and has gain tremendous importance
due to it’s strategically importance in the world. Gwadar Port is the third port of Pakistan -
Karachi and Port Qasim being the other two. It's the First Free Trade Port of Pakistan, and,
also the First Deep Sea port of the entire region. Gwadar port emerges as a place of great
strategic value, giving tremendous boost to Pakistan's importance in the whole region,
extending from the Persian Gulf through the Indian Ocean to Southeast Asia and the Far
East.
Introduction
Gwadar is well known for it strategically position in the world. It’s gaining more importance
because of The Great Oil Game which is centre of attraction for developed countries. Gwadar
is situated in the province of Blochistan which 40 percent of Pakistan's land mass possesses
important reserves of oil and natural gas as well as extensive mineral resources. Pakistan
has an estimated 25.1 trillion cubic feet (Tcf) of proven gas reserves of which 19 trillion are
located in Balochistan. According to the Oil and Gas Journal (OGJ), Pakistan had proven oil
reserves of 300 million barrels, most of which are located in Balochistan. Other estimates
place Balochistan oil reserves at an estimated six trillion barrels of oil reserves both on-
shore and off-shore (Environment News Service, 27 October 2006)1.
The new oil mega city on the shoreline of Balochistan has two main working areas,
petrochemical city and biggest refinery with storage complexes and warehouses in the
region. After the completion of project Gwadar port will become the economic and trade
transit point for Pakistan, Afghanistan, China and central Asian states.
1 http://www.globalresearch.ca/index.php?context=va&aid=7705
History
Region of Gwadar is surrounding by Makran which was ruled by Persian Empire for many
year. During the march of Alexander the Great, his admiral, Nearchus, led a fleet along the
modern-day Makran coast. After the collapse of Alexander's empire the area was ruled by
Seleucus Nicator, one of Alexander’s generals. The region then came under "local rule"
around about 303 BC2.
After being in sideline form the pages of history city was once again become active after the
Arab-Muslim army of Muhammad bin Qasim captured the town of Gwadar in AD 711. Mugal
rulers rule over for many year before the Portuguese explorers captured and sacked Gwadar
in the late 16th Century and this was then followed by almost two centuries of local rule by
the various Balochi tribes. In 1783, the Khan of Kalat granted suzeranity over Gwadar to
Taimur Sultan, the defeated ruler of Muscat3. When the Sultan subsequently retook Muscat,
he was to continue his rule in Gwadar by appointing a wali (or "governor"). In 1958, the
Gwadar enclave was transferred to Pakistan. It was then made part of the Balochistan
province In 2002, the Gwadar Port project (of building a large, deep-sea port) was begun in
the town. The government of Pakistan intends to develop the entire area in order to reduce
its reliance in shipping on the port of Karachi. In addition to expanding port facilities, the
Project aims to build industrial complexes in the area and to connect the town via a modern
highway to the rest of Pakistan. By the end of 2004 the first phase had been completed4.
Location
It is located about 533 km from Karachi and 120 km from the Iranian border. Gwadar Port is
situated at the mouth of the Persian Gulf and outside the Straits of Hormuz5, where majority
of the world's oil passes daily. It is estimated that through that route 30% of the world's
daily oil supply passes6. Gwadar is closet to the key shipping routes used by the mainline
vessels in the region with connections to Africa, Asia and Europe and enjoys high
commercial and strategic significance. Various professional studies manifest that Gwadar
Port location is the most advantageous one
as an alternative port, which could handle
mother ships and large oil tankers.
Picture Showing GWADAR in
centre of the world7.
2 http://en.wikipedia.org/wiki/Gwadar 3 http://en.wikipedia.org/wiki/Gwadar 4 http://en.wikipedia.org/wiki/Gwadar 5 Gwadar Cornor http://www.Gwadarcorner.com/index.php?action=port
6 News.bbc.co.uk/2/hi/south_asia/6469725.stm 7 Image:Orthographic projection centred over Gwadar
http://en.wikipedia.org/wiki/Image:Orthographic_projection_centred_over_Gwadar%2C_Pakistan.png#filelinks
Infrastructure
Gwadar is located on the Gulf of Oman close to the entrance of the Persian Gulf, about 460
kilometers west of Karachi. It has road with Iran which is only 72Km away from Gwadar.
Government is constructing the road link from Gwadar to Afghanistan and rail network
between Gwadar and Iran and Afghanistan. Government is focusing on laying the Havelian-
Kashghar (China) and Quetta-Kandahar (Afghanistan) railway tracks”. In 2006, Ministry of
Railways announced that Gwadar will be connected to Pakistan Railways network at an
expected cost of $ 1.25 billion. The construction of the port has spurred other major
infrastructure projects in the area. This includes the 700 km Makran Coastal Highway which
is now complete. The road links Karachi with several ports along the coast including Ormara,
Pasni, Gwadar and will be extended to the Iranian border in the future.
Road map 8 Road Map.jpg
8 www.lib.utexas.edu
Distance from Gwadar9
S No.
CITY/REGION
DISTANCE FROM
GWADAR
LINKIS
1 KARACHI 470 KM ROAD/AIR/SEA
2 ISLAMABAD 900 KM ROAD/AIR
3 IRAN 72 KM ROAD/AIR/SEA
4 AFGHANISTAN 1300 KM ROAD/AIR
5 CHINA 2000 KM ROAD/AIR
6 CENTRAL ASIAN STATES 2000 KM ROAD/AIR
7 STRAIT OF HORMUZ 400km SEA
To connect western China with Central Asia by land routes, Pakistan is working on building
road links to Afghanistan from its border town of Chaman in Baluchistan to Qandahar in
Afghanistan. In the northwest, it is building similar road links between Torkham(Pak Afgan
Boarder) and Jalalabad in Afghanistan. Eventually, the Gwadar port will be accessible for
Chinese imports and exports through overland links that will stretch to and from Karakoram
Highway in Pakistan's Northern Areas that border China's.10
Port Infrastructure11
“Current port infrastructure
3 multipurpose berths, each 200 meters long.
1 Ro–Ro berth
1 service berth, 100 meter
4.5 km long approach channel dredged to 11.5 m inner harbour and 12.5 m outer
harbour
Width of channel 165 m
Port basin with turning areas with diameter of 400 m
Related port infrastructure and port handling equipment, pilot boats, tugs, survey
vessels, etc.
9 http://www.revuemilitairesuisse.ch/node/149
10 Gwadar: China's Naval Outpost on the Indian Ocean Tarique Niazi, the Jamestown Foundation, China Brief 2/28/2005.
http://www.asianresearch.org/articles/2528.html
11 http://Gwadarnews.com/Gwadar-port.asp
The port, currently, has the capacity to handle 50,000 DWT bulk carriers and 25,000
DWT container vessels.
Engineering Consultants International (Pvt.) Ltd (ECIL), a leading Pakistan
consultancy firm has been engaged in supervising all the shore civil works under
construction at Gwadar and design the East Bay Express way and supervision of its
entire construction works”.
Investment
The total cost of the project is estimated at $1.16 billion USD, China pitched in $198 million
and Pakistan $50 million to finance the first phase. China also has invested another $200
million into building a coastal highway that will connect the Gwadar port with Karachi. The
second phase, which will cost $526 million, will feature the construction of 9 more berths
and terminals and will also be financed by China.12 Pakistan has invested more than $2 billion to
upgrade Gwadar and in the completion of related development programmes in the last two years. The
provincial Government of Balochistan itself is spending Rs 4.5 billion in Gwadar.
GEOPOLITICAL IMPORTANCE13
Gwadar geopolitical importance can be judge with the fact that it is stated as strategically
best location both for global economy and military objectives. World economical powers
have shows there comments about this location. Different states have different views and
concerns.
America presence in the Gulf region has created worries for China. Moreover US entry in
Afghanistan enhances these worries for China. Having set up its bases in Central, South, and
West Asian countries, the U.S. virtually brought its military forces at the doorstep of China.
Saudi Arabia is biggest of producer with 261 billion barrels of proven oil reserves (more than
one-fourth of the world total) and up to 1 trillion barrels of ultimately recoverable oil.14117
Shortly after the Arab oil embargo in 1973-74, the United States (and other Western
countries) created the Strategic Petroleum Reserves (SPR) as the nation’s first line of
defense in case of an oil crisis. In November 2001, President Bush made an unprecedented
decision to fill the SPR to its full capacity of 700 million barrels.15 And in 2001, the United
States imported 54 percent of its oil requirements, out of which 30 percent came from the
12 Gwadar: China's Naval Outpost on the Indian Ocean Tarique Niazi, the Jamestown Foundation, China Brief 2/28/2005.
http://www.asianresearch.org/articles/2528.html
13 http://en.wikipedia.org/wiki/Gwadar
14 Bahgat Gawadat, “Oil and Militant Islam: Strains on US-Saudi Relations,” World Affairs, (Winter 2003) 15 Bahgat Gawadat, 2003.
Persian Gulf region.16 US economy depends upon oil supply chain. After 9/11 US relation
with Saudi Arabia are not as firm as they were before and it is looking for alternate for oil
supply. CAR’s natural resources are alternate for that and nearest supply line and access
point to persion gulf is Gwadar.
Only a few days before the September 11 attack, the U.S. Energy Information
Administration documented Afghanistan’s strategic “geographical position as a potential
transit route for oil and natural gas exports from Central Asia to the Arabian Sea.17
Desire for a strategic alternate of oil aside, the indications of wearing American commitment
in the Middle East does not necessarily indicate lowering of its resolve in the area as the
Pentagon is becoming increasingly interested in the concept of mobile offshore bases for
deployment in the Persian Gulf, to ensure the U.S. military access to critical regions in the
future.18 Persian Gulf and Indian Ocean areas are, therefore, priority of United States policy
makers for the predictable future. President Carter’s statement in his 1980 State of the
Union address, subsequently labeled as the “Carter Doctrine,” that “Any attempt by any
outside force to gain control of the Persian Gulf Region will be regarded as an assault on the
vital interests of the United States of America and such assault will be repelled by any
means necessary including military force.19 US interest in the Indian ocean is part of there
policy but China growing terms with Islamabad specially near to Persian Gulf region has now
alarmed U.S. America is preparing India as competitor of China and believes that if China
got access to blue water than it will have control on the oil supply chain of the world.
Pakistan is under immense pressure by Washington to involve US in the project instead of
China.
China is emerging as a super economic power of the world in the recent years. Despite
occupying a huge area of world's land, it doesn't have any port of hot waters, which can be
used the whole year. The distance of Chinese industrial approach to the Shinghai port is
approximately 16000 km and the sea travel of 2-3 months is additional. This costs them a
lot in the form of taxes and duties as well. As compared to this, Gawadar port is only on a
distance of 2000 km from China and the port is working for the whole year because of the
hot waters here. Therefore, the interest of China in the development of Gawadar port is
infact in the interest of Chinese economy.
16 Energy Information Administration, Energy Situation Analysis report: May 3, 2002, www.cis.state.mi.us/mpsc/reports/energy/02summer/oilimports.htm 17 Energy Information Administration, Oil, war, Geo-Politics and Hegemony, www.eia.doe.gov 18 Jason Sherman, “Pentagon Group Details Sea Base Concept,” DefenceNews.com, http://www.defensenews.com/sgmlparse2.php?F=archive2/20031027/atpc7674087.sgmlH (accessed March 23, 2005) 19
Robert H. Johnson, “The Persian Gulf in U.S. Strategy: A Skeptical View,” International Security, Vol. 14, No. 1 (Summer, 1989): 123.
As discussed earlier that 60 % of oil supplies to China are from the Persian Gulf where US
presence has alarmed China. Having no blue water navy to speak of, China feels defenseless
in the Persian Gulf against any hostile action to choke off its energy supplies. This
helplessness set Beijing rush for alternative safe supply routes for its energy shipments. The
planned Gwadar Deep Sea Port was one such alternative for which China had flown its Vice
Premier, Wu Bangguo, to Gwadar to lay its foundation on March 22, 2002.
Iran
The Persian Gulf is an important trade route in the strategic northern reaches of the Indian
Ocean. Some 80 percent of the world’s oil tankers leave the shores of the Persian Gulf
destined to other parts of the world.20 Geopolitical location of Iran within the Persian Gulf
region is such that the northern shores of this Gulf belong entirely to Iran, which enables her
to control the Straight of Hormuz. Passage through Hormuz is an issue of concern several
times a year when Iran holds its war games at the mouth of Gulf.21
Iran want to supply Gas to India which routes is through Bolachistan and secondly Iran is
alos well candidate for CAR,s oil and gas resources supplies to rest of world.
India
Another fast growing economy and rival of Pakistan, India which depends to a large extent
on the import of crude oil and petroleum products for meeting its energy requirements from
the Persian Gulf region. India’s production from existing oil fields has been declining over the
time, increasing its dependence on the import of oil.22 India seeks to develop economic
relation with CARs in collaboration with Iran and desires to have access in this market.
Japan
The importance of the Indian Ocean to the Japanese cannot be exaggerated; it would not be
wrong to state that the Indian Ocean is a lifeline of Japan. Japan averaged 3.9 million bbl/d
of net oil imports from the Persian Gulf during 2002.23 Japan’s energy concerns dictate its
policies in favor of oil from a Caspian export pipeline terminating at the Indian Ocean.163
Therefore; it is safe to assume that Japan will support the operationalization of the Gwadar
port project.24
Dubai
Dubai is the hub of business not only for Gulf but also for rest of the world including Europe,
United States, Africa, China and Central Asian States, simultaneously. The gulf region is
20 Danesh Pajooh, “Iran and the Strategic Significance of the Persian Gulf”, Indian Ocean Security and Stability in the Post-Cold war Era (1995): 223. 21 Donna J. Nincic, “Sea Lane Security and US Maritime Trade: Chokepoints as Scarce Resources,” in Sam J. Tangredi, 157. 22 Mohan Malhotra, “India’s oil supply deficit spurs reforms to lure foreign capital,” Oil & Gas Journal, (June 2, 1997). 23
Energy Information Administration, Persian Gulf Oil and Gas Exports Fact Sheet 2004 (September 2004), http://www.eia.doe.gov/cabs/pgulf.html. 24
The Geo-Politics of Caspian Oil,” The Janes Intelligence Review, (July 01, 2000).
facing many political conflicts specially after Iraq war there are many ups and down in the
gulf region which has disturbed the whole region and due to unstable condition more
disturbance is expected in the next few years.
In such a scenario, a substitute of Dubai is essential to be located before the crisis hits the
finances of millions. That substitute shall be a nearest point and access-able by the whole all
to ensure regular supply of oil from Gulf to the outer world. Gawadar proves to be the
nearest and infact more cost-effective substitute of Dubai, from many aspects.
Dubai has concern about Gwadar that if it starts working then importance of Dubai reduces
automatically and world finance will transfer to Gwadar instead of Dubai. Gwadar offer more
attractive facilities like property rights, more easy route as compare to dubai, easy handling
Circles in the Maps showing Duabi and Gwadar. It can be seen Gwadar is more
assessable than Dubai and offer ideal location. Ships and Vesselss have to cover more
distance to reach Dubai after passing through Gulf of Oman.
of huge number of ships, container and vessels because of it natural location and easy
access to world most populated region. Gwadar take over Duabi in all aspects and in much
better position to facilitate the world.
Central Asian states are full of natural resources but these states are landlocked.
After Independence for USSR they are trying to develop there economies. Currently some
trade of these countries is going on through Karachi. Due to Afghan crises road link could
not established between Karachi and central Asian stated but Gawadar being near to Iranian
border will provide port facilities to Central Asia as well. China is eyeing the unexploited
natural resoucres of Central Asia. She is already conducting oil transactions
with Kazakhstan. But with the impending plan of laying five pipelines from Central Asia to
Gawadar China will ensure big oil and gas supplies to run the wheels of her fast expanding
economy at home.
Ser No
COUNTRY CRUDE OIL MILLION BARRELS
NATURAL GAS (TCF)
COAL (MILLION SHORT TONS
1 Kazakstan
5417 56 37479
2 Kyrgyzstan
40 0.2 895
3 Tajikistan
12 0.2 Minimal
4 Turkmenistan
546 101 Minimal
5 Uzbekistan
594 66.2 Minimal
6 Total 6609 232.6 38374
Proven Reserves, Central Asia Source: Energy Information Administration.25
According to report China and Pakistan have already held talks for laying strategic pipelines
from Gawadar to Chinese border to transport oil from South Asia. The 14.5 meter deep and
5 kilometer long approach channel through three berths will be capable of handling carriers
up to 50,000 dead weight tons. Beijing will build refinery and petrochemical complex at
Gawadar with initial 10 million ton capacity, which would later go up to 20 million tons.26
25 U.S. Energy Information Administration, “Country Analysis Briefs - various,” http://www.eia.doe.gov/emeu/cabs/contents.htmlH (accessed April 12, 2005). 26 Global World by K.N. Pandita http://geopolitics.world-citizenship.org/geopolitics/index.php/wp-archive/95
Trans-Afghan Gas Pipeline a long undeveloped project of a 1,500 kilometers long Trans-
Afghan Gas Pipeline (TAP) from Turkmenistan to Gwadar and other parts of Pakistan that
hopes to thrust Turkmen natural gas to global markets is also poised to step off the drawing
board after completion of the port project27.
GEOECONIMICAL FACTORS
Economic benefits of Gwadar port, besides the geo-strategic importance are: capitalizing the
opportunities for trade with landlocked Central Asian states and Afghanistan, promotion of
trade and transport with Gulf States, trans-shipment, essentially of containerized cargo,
unlocking the development potential of the hinterland, diversion of influx of human
resources from upcountry to Gwadar, socio-economic uplift of the province of Balochistan,
establishment of shipping-related industries, oil storage, refinery and petro-chemicals,
export processing industrial zones and many more avenues.28 Gwadar could emerge as a key
shipping point, bringing Pakistan a much-needed income, and when combined with the
surrounding areas could become a trade hub, once road and rail links connect it to the rest
of Pakistan, Afghanistan and Central Asia. Pakistan’s business community seems to be in
favour of Gwadar port being selected a free trade zone and an export-processing zone. The
port comes as a much-needed national requirement in the wake of the rise in cargo traffic at
Keamari and Bin Qasim, which are operating at full capacity. It is expected that Pakistan's
maritime traffic would rise by three folds by 2010. With the construction of a third port, it is
estimated that Pakistan will not only be able to meet its own requirements of the future but
also offer its port facilities to the neighbouring countries.
27 NAVAL POSTGRADUATE SCHOOL, MONTEREY, CALIFORNIA Ammad Hassan June 2005, PAKISTAN’S GWADAR PORT – PROSPECTS OF ECONOMIC REVIVAL 28 http://www.gwadarcorner.com/index.php?action=about
Gas Pipe
line from
Central
Asian
States to
Gwadar
Over the past two years, the trade volume China and Pakistan has jumped to $2.5 billion a
year, accounting for 20% of China's total trade with South Asia. A Bilateral Free Trade Area
is underway which will bring tariffs between the two countries down to zero. Chinese
investment in Pakistan has increased to $4 billion, registering a 30% increase just over the
past two years since 2003. Chinese companies are 12% of the foreign firms operating in
Pakistan, which employ over 3,000 Chinese nationals.29
To oppose Sino-Pak collaboration, India has brought Afghanistan and Iran into an economic
and strategic alliance. Iranians are working on Chabahar port in Sistan-Baluchistan, which
will be accessible for Indian imports and exports with road links to Afghanistan and Central
Asia. India is helping build a 200-kilometer road that will connect Chabahar with
Afghanistan. Once completed, Indians will use this access road to the port for their imports
and exports to and from Central Asia. Presently, India is in urgent need of a shorter transit
route to quickly get its trade goods to Afghanistan and Central Asia. Presence of China in the
way will create obstacle in establishing good economical relation between these countries.30
Gawadar is now destined to be the most important upcoming coastal town located on the
inter junction of the three most strategically and economically important regions of the world
29 Gwadar: China's Naval Outpost on the Indian Ocean Tarique Niazi, the Jamestown Foundation, China Brief 2/28/2005.
http://www.asianresearch.org/articles/2528.html
that are oil rich Middle East, South Asia where one- fifth of world population lives and the
Central Asian Republics endowed with mineral wealth and an educated.31
Gwadar Comparison with Ports in the region32
Table 1. Statistical Comparison of Ports
Feature Dubai Ports Authority Rashid Jebel Ali
Salalah Bandar Abbas
Chah-bahar
Karachi Qasim Gwadar(after Phase-II)
No. of Berths
35
71
33
24
4
30
10
12
Channel Length (Km)
0 15
0
6.4
1
12
45
4.5
Channel Depth (m)
3 17
16
13
0
3
12
20
Traffic Handled (in Million TEUs)
5.1
2
1
-
0.8 0.42
??
Vessels Called
13232 1184 -- - 393 806 ??
Source: Official websites of all ports. There are three broad parameters on which ports compete with each other. These include:
(1) inter-port for same trade, (2) intra-port for same markets, and (3) Intra-Terminal for
same services.33 Selection of a port is a shipper’s decision which, in addition to geographical
location, looks for a full complement of services, including export packaging, warehousing
and distribution, bonded operations and a Free Trade.34
SWAT Analysis
Strength:
Strategically Gwadar is link between three highly important regions of the world: the oil-rich
Middle East, densely populated South Asia and the economically rising and full of resource
Central Asia. Gwadar gain importance due to following main reasons. These are as follow
31
Shaikh.Mohammed & India Co. vs. Gwadar, Mid East crisis, Pakistan’s Talibanisation 32 NAVAL POSTGRADUATE SCHOOL, MONTEREY, CALIFORNIA Ammad Hassan June 2005, PAKISTAN’S GWADAR PORT –
PROSPECTS OF ECONOMIC REVIVAL
33 World Bank, “Port Reform Toolkit,” Module 6, Hhttp://www.worldbank.org/html/fpd/transport/ports/toolkit/mod6.pdfH
(accessed April 05, 2005). 34
NAVAL POSTGRADUATE SCHOOL, MONTEREY, CALIFORNIA Ammad Hassan June 2005, PAKISTAN’S GWADAR PORT –
PROSPECTS OF ECONOMIC REVIVAL
Geo Strategic position of Gwadar has made it one of the most attractive and
important regions in the world.
Natural deep sea port
Rich oil & natural gas reserves in the province of blochistan where Gwadar
Close to the important Straits of Hormuz35, through which more than 13 million bbd
of oil passes daily.
Current location of Gwadar is much more access able than Dubai, Oil containers,
Vessels and cargo ships have to go inside the gulf region to reach Dubai port but as
far Gwadar is concern the route is very short and easily access able.
Weaknesses
China wants access to the hot waters and has eye on the oil reserve of the world many of
the other countries who don’t want to see china as growing nation are trying to create
instability in the region. Unstable political situation in the province of Blochistan is hurdle in
the way of progress toward development of the region.
America and its allies are not in favour of imagining china to become the only economical
giant and to capturing oil of central Asian states and Blochistan.
Dubai and some other ports in the middle east area which are currently financial hub of the
world and duty free zone are not purely in favour of Gwadar because it will some how
reduces their importance in the region.
Iran is a big oil producer and it is land is one of the world's most mountainous countries. Most of oil
in Pakistan is in Blochistan proven oil reserves are 300 Million Barrel. Flow of oil is from Iran to
Blochistan. If mega oil city is constructed in Gwadar with world biggest oil refinery it could also be threat
for Iran oil reserve.
India has some serious threats about Gwadar. According to Indian Naval Chief in an
interview with leading newspaper of south-east Asia shows his concerns about Gwadar by
claiming that Gwadar port has strategic implications for India: Indian naval chief36 Suresh
Mehta said, Hindustan Times. Moreover he Says port will enable Pakistan to control world’s
energy corridor. Talking about china Indian naval chief said that “China is making new
strategy with china and they name it as China had a strategy called “String of Pearls”,
according to which it seeks to set up strategically located bases and outposts along its
energy lines across the globe to monitor and safeguard energy flows. “Each pearl in the
string is a link in a chain of the Chinese maritime presence,” he described.
Local Tribes in the area are under the influence of foreign secretes agencies and try to
create the political and economical unrest in Gwadar. Just because of lack of education and
35
http://en.wikipedia.org/wiki/Gwadar
36 Daily Times, 23 January 2008, http://www.dailytimes.com.pk/default.asp?page=2008%5C01%5C23%5Cstory_23-1-
2008_pg7_53
strong traditional ties of local people with their tribe heads make them unaware of current
the development going on in the region. These tribes head force people to do violence
activities to destabilize the process of development in the area.
Opportunities
Gwadar is business hub in future. There are lot of business and investment opportunities in this
area. The emerging mega oil city has two main components i.e. petrochemical city and the
biggest refinery with storage complexes and warehouses in the region. Beside this there are
many other areas where many other opportunities exist.
Real Estate
Area of Gwadar once an ordinary piece of land is among the most valuable area in term of real estate
investment. More than 75 NOCs have been issued up to May 2006 to Different Builders &
Developers by Gwadar Development Authority (GDA). People have invested huge amount of
money in buying residence and commercial plots in the region. Lot of foreign investors
specially form European countries have shown keen interest in purchasing property in
Gwadar.
Duty Free Industrial Zone & Hotels
Government has announce free port Industrial zone at Karwaat about 45 Km from Main
Jinnah Avenue of Gwadar. This Govt. Project is consisting of 10000-acres land for industry
purpose. Pearl Continental Hotel has started it working in beautiful location, Almost and
more 5star hotels are under construction.
Saindak Copper Gold
Beside oil Blochistan has huge resources of Copper & Gold. The Saindak Copper Gold project
is in progress by producing 12500 tons 'raw copper' daily. MRDL, a Chinese company, is
doing the whole work. Latest machinery has been installed in addition to a 50 MW
powerhouse. The Chinese company MRDL has so far invested $25 million on the project37.
Special Economic Zone
Government is development of a Special Economic zone which will bring additional economic
activities to the area and provide further boost to the Port. The Government intends to
provide the investors with the most attractive working conditions, relaxing concession, and
incentives and all other facilities of international standard to attract foreign investment.
Others
Besides the Geostrategic importance Gwadar has some of the many other areas of
investment and many opportunities available.
Opportunities of trade with landlocked central Asian states and Afghanistan.
Help trade and transport with Gulf States.
Trans-shipment essentially of containerized cargo.
Help to boost up the development process of neighbouring areas.
37 Gwadarnews.com
Providing more job opportunities for local blochs and others.
Establishment of shipping related industries.
Export process zone.
It will reduce dependency on existing port at Karachi which is currently financial hub.
Threat
Threat to Gwadar is its own importance in the region. Many reason come in the way which
are hurdles in the progress of GWADAR. Combinations of internal and external threats are
big factors which come in the way of full implementation of project. Some of main threats
which Gwadar currently faces are
US Involvement and Its Pressure on Pakistan to stop co-operation with China.
India and Iran joint activities to destabilize situation in Blochistan
Uncertain political position in Pakistan
Middle East states more involvement in the Gwadar
Tribal heads constant terrorist activities to threat investors and worker
Gwadar is on the highly active seismic zone and earthquake jolt have been measured in the
area several times. To overcome the threat of Tsunami and earth quake the area should be
planned under the guidance of world best architects.
Conclusion
Gwadar is a golden gateway and it is important because of its unique strategically position
on globe. Its importance can be analysed with the fact that all the countries in the nearby
region including superpowers like US and Europe are interested in occupying this area.
Pakistan neibhouring countries are constant threat for Gwadar. If the government adopt
intelligent policies on Gwdar by eliminating the concern of opponents and once oil and gas
from Central Asia and the Middle East begin to flow into the huge refineries of Gawadar, it will
have significant impact on oil-related regional strategy. Pakistan’s Makran coast could become
the alternate of mega complexes of Gulf States and the world could enter in “new great game”.
PEST Analysis
Political
Despite of all the efforts done by government to make Gwadar the future business hub there
are some internal and external factors which are causing political instability in the area.
Positive Aspects.
Government is spending huge amount of money to make area ideal for huge foreign
investment. Local and foreign investors are showing keep interest to buy property both for
business and residential purpose.
Despite of fact the political conditions in the Pakistan are having rise and fall but
government policies on Gwadar are constant. Special grants are given to Blochistan to make
area more prosper both for people and business.
Special loan are given to local residence of Gwadar for starting there own business.
The Central Board of Revenue (CBR) has given exemption of customs duty on the import of
machinery, equipment and bunker oil to the operators for rapid development of Gwadar
port.
Government allotted military total of 11,000 acres land at Gwadar port to build 'Combined
Defence Complex (CDC). The proposed Complex appears a step in the same direction for
presence of the Defence forces at this important strategic place.
Negative Aspects.
Internal: Blochistan has tribal tradition. Some of the famous tribes are Bughtis, Murree,
Maingals who has strong influence on residents of region. Tribe head in Blochistan don’t
want to see the area developing because through this their domination in the area reduces.
People follow the orders of tribe head and tribe heads create political unrest in the area.
External: The law and order situation in Balochistan has been a question mark for the
federal government. By keeping eagle eye on province, which is rich in natural resources
such as oil and gas and other precious minerals, the federal government reaches on
conclusion after investigation that some foreign hand is active in the province to destabilize
the whole region. This has left with no other option but to take some extra ordinary
measures to make sure that anti-Gwadar elements can not simply act at their will against
the laws of the state.
Economical
When the project of developing Gawadar as a deep-sea port was undertaken in 2004,
Beijing provided 80 per cent of 248 million US Dollars as the initial development cost of the
port. Sino-Pak planners expect the port to initially generate revenue of 23.6 billion US
dollars, with a capacity to reach 42.2 billion38. Pakistan has invested more than $2 billion to
upgrade Gwadar and in the completion of related development programmes in the last two
years. The provincial Government of Balochistan itself is spending Rs 4.5 billion in Gwadar.
Pakistan is an impoverished and underdeveloped country. Its economic record was not good
in the past39but mega projects that the government has started in Balochistan, including
Gwadar port, are going to generate an estimated $60 billion every year over the span of
time and provide a firm basis for the socio-economic uplift of the province40. During the last
few years huge economical activates have been noticed through government department.
Huge investment in real estate, hotel and tourism sector has been observed.
Socio-Cultural
Gwadar’s location and history have unique blend of cultures. The Arabic influence upon
Gwadar is strong as result of the Omani era. For many years people of Gwadar has dual
nationality both of Pakistan and Oman but currently they are only citizens of Pakistan. Area
has remarkable religious diversity, being home to no only Muslims, but also groups of
christens, hindus and parsis as minorities.
Populaton41
ADMIN UNIT AREA (in sq. Km) Total Population Male Female
District Gwadar 12,637 185,498 99,436 86,062
Tehsil Gwadar 5,019 109,748 59,170 50,578
Tehsil Pasni 7,618 75,750 40,266 35,484
The overall literacy rate of Gwadar district is 25.47%. For a long time Gwadar was small fishing
town and people were very backward living without some the basic facilities. Those people
once poor are now well aware of importance of their region and due to heavy investment in
real estate sector they are much flourish than before. In recent years the presence of
Afghan refugees disrupted the delicate ethnic balance in the province by making the
Pashtuns at least numerically equal to the Baloch in recent years.
Technological
Gwadar is under developing region but as well technology, during the short span of time all
the latest technology has been provided to that region to attract more investment in the
region.
38 Global World by K.N. Pandita http://geopolitics.world-citizenship.org/geopolitics/index.php/wp-archive/95
39 http://www.Gwadarcorner.com/index.php?action=about
40 http://www.Gwadarcorner.com/index.php?action=about
41 http://www.gda.gov.pk/pages/literacy.html
Initially three multipurpose berths, each 200 meters long equipped with latest technical
equipment are ready for operational purpose.
Telecommunication facilities like telephone, broadband internet facility has provided in the
area.
Transportation facilities have been provided for the residence of the areas which connect
them to rest of the country by road. Gwadar Airport is functional and providing facilities to
people. The government is focusing on laying the Havelian-Kashghar (China) and Quetta-
Kandahar (Afghanistan) railway tracks”. In 2006, Ministry of Railways announced that
Gwadar will be connected to Pakistan Railways network at an expected cost of $ 1.25 billion
(Rs. 75-billion).
Luxurious hotels are facilitating people and more 5 star hotel chains have started
construction on ideal locations of Gwadar.
Electricity & natural gas has been provided to the area. To meet the future energy
demand Government of Pakistan has sign an agreement with Iran to provide 100MW of
Electricity for Gwadar. Natural gas has been provided to Gwadar form neighbouring city of
Sui which has huge natural gas reserves.
Leading technological Institutes are planning to open their campuses in Gwadar. A
hospitals equipped with all latest facilities has start providing facilities to people.
PSA of Singapore has taken over management of Gwadar Port which was the highest
bidder for the Gwadar port operations. PSA of Singapore is world leading port management
operator in the world currently operating in 26 ports of 15 countries which are mostly in
Europe42. Equipped with the latest technologies PSA Gwadar International terminal has good
experience in port management
Conclusion
Pakistan have to give more attention on the current political situation not only in Blochistan
but through out Pakistan. Special teams should be send to talk with tribal head and educate
people about the benefits of Gwadar because mostly the people of Blochistan are
uneducated have have very strong tribe influence. Government polices should be more
relax-able for investors and businessman. Once people get awareness about the current
importance of Gwadar, the city will turn most important trade point in the world.
Although, the Gulf was to be considered on of the best zones for trade and business till now,
but the rapidly changing political conditions in Afghanistan, Iraq and specially Middle East
has created an air of uncertainty, of its future, in the minds of business community. The
42 www.psa.com.sg
business community in the Gulf has already started exploring new horizons for future trade
and what best could they get than Gwadar43.
Confidence Level
Ser
No
Sources Confidence Level
1 Internet Articles 6
2 Literature Review 8
3 Newspapers 7
4 Government Websites 8
5 Private Websites 7
6 Research Reports 8
7 My own analysis 7
43 http://www.globbizavenue.com/features.asp#3
Gwadar Pictures From satellite
