Fresh push to kick-start dormant Gwadar port
A high level meeting was held in the provincial capital to discuss the currently dormant port which, once operational, can greatly boost economic development.
The Planning Commission of Pakistan’s Deputy Chairman Dr Nadeem ul Haq said the federal government will prepare a “master plan for coastal development.” He added that the government will also release Rs3 billion for the completion of the Rato-Dero-Gwadar link road connecting Gwadar with Sindh and Punjab, which will be completed by June next year.
Gwadar Port Authority’s Director General Pervez Rehmat and Additional Chief Secretary, Development, Dr Umer Babar briefed the participants on the master plan’s salient features.
It was agreed in the meeting that if the government decides to restore the Nato supply route to Afghanistan, the supplies should be directed from the Gwadar Port. A formal demand will be made to the federal government regarding this. It was also suggested that the port be used for Afghan transit trade.
Participants of the meeting were told that the government has already spent Rs50 billion over the construction of Gwadar Port and the Coastal Highway. It was noted that the earlier decision of appointing the chief minister of Balochistan as chairman of the Gwadar Port Authority is yet to be implemented and no formal notification has been issued by the federal government to this effect.
The participants agreed that all pending decisions regarding the development authority should be implemented at the earliest in order to expedite the process of making the port operational. Dr Haq said Gwadar would be made a special economic zone for speedy development of the entire region.
He assured the meeting that the commission would ensure the availability of necessary funds for dredging and improving facilities at the port.
Haq added that the prime minister has issued clear instructions to provide funds to Balochistan to ensure development is at par with other provinces.
He said the provincial government was asked to study the feasibility report and look into possible future developments based on the model of prosperous neighbouring ports like Iran’s Chabahar and UAE’s Jabal-e-Ali.
The chief minister of Balochistan also stressed that the province’s progress was directly linked with making the port operational.
Published in The Express Tribune, May 15th, 2012.
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@Pinto: The Chinese have done nothing for Gwadar except for their construction company to give a supplier credit which is 100% guaranteed by Pak Govt. Not one rupee of aid/grant. Most of the equipment put there is already obsolete. Have nothing against the Chinese as they have done the job assigned but Pakistani press has overplayed their contribution like it was some strategic commitment.
@Logistics: Same here. Enjoyed the discussion and learnt from it.
@Parvez: Yes, i agree with you.
@Logistics: Your reply has merit but you talk only in terms of containers while Gwadar has handled bulk cargo. The fact remains that a lot of money has been spent on Gwadar and still a proper road nor rail connects the port with inland destinations. This port should be seen as an engine of development in Baluchistan and I say again that the government must only provide the infrastructure and let an autonomous body run the affairs of the port. You do realise that I am talking theoretically, in practice what actually happens in Pakistan is another matter. As you say you are in the shipping business ( Logistics) so you will agree with my view as an outsider that there is no such thing as short term strategies in this industry.
@Parvez: My dear Parvez, you are right to look at it in terms of common sense but sometimes the layman view does not show the details. All the ships that have berthed at Gwadar have done so because of the Govt policy decision to force certain commodities to go to Gwadar with the extra costs borne by the Govt (i.e. me and you, the taxpayer). It is shorter to the Afghan border but lets say 1000 container are destined for Pakistan from Europe or China on a vessel and 200 container are for Afghanistan. It needs to make economic sense to the ship owner to pay two port call costs (time, deviation from route and money), so he can discharge the 200 container near the border. Secondly, trucking is not only governed by distance but by backhaul cargo. There is NO export to Gwadar while a truck carrying cargo from upcountry Pakistan to Karachi has come options. We should not let emotion run our economic decisions when spending billion of our childrens money (they will be asked to pay back the loans), but look at hard economic facts. Even if the facts were in favour, I doubt the govt has the managerial talent to execute such a complex project. Port Qasim was built 20 years before it was commercially required. Basically the cost of the project burdened our exchequer with 3 times its cost in interest for no reason except grand (false) vision.
what pakistan wish to export or import from gwadar. what all it needs to do its already been done efficiently by karachi port. rest gwadar wont be of any use as pakistan is not allowing transit facility to isaf and nato so...what use it is going to be of?
@Logistics: Even without a proper road or rail connection and a high port tariff many ships have berthed and discharged their cargoes, proving that the port can function. As in my above comment if all the infrastructure is provided by the government and an independent body is left to market and run the port, it will be an asset not only to Baluchistan but to Pakistan as well. A simple look at a proper map will show that distances from Gwadar inland to Afghan border crossings are shorter than from Karachi i.e cheaper for trucking.
@Parvez: It do not believe it is self evident as you say. I am in shipping business and I know the thinking of the ship owners involved. Gwadar Port is priced similarly to Karachi port with no incentive to call there while the economy is in the eastern part of the country.
@Logistics: Pakistan has a coast line of a little over 1000 km. and has only 2 ports. The reason for another port is self evident because development springs from the port and not the other way around. Ensuring that it functions correctly to give benefit to the nation is entirely another matter.
I hope this brings prosperity to Balochistan and the Baloch people. But the question is "how will BLA, BRA and BLF react to this news?" They complain of the lack of development but are responsible for destroying property and life in Balochistan. I am sure they will shoot rockets at it. This is their favorite past-time.
Not only should Gwader Port be upgraded to functional capacity asap, but the ISAF countries should be asked to help set up a modern efficient rail transit facility there to facilitate trade with Afghanistan and Central Asia. Pressure needs to be taken off Karachi which is unstable due to ethnic violence there.
A port cannot function with a reason for existence, and Gwadar has none. Karachi Ports are economically more efficient and have spare capacity and there is no way ship owners will stop at an expensive port to discharge part cargo that can easily go to Karachi.
A port can not function without good rail, road links, reliable power and water, providing these is the responsibility of the government. Marketing and running the port is not the work of the government.
railway link!!!
ha ha ha. All wonderful ideas and intentions die a silent death in the hands of incompetent PPP polticians. That is probably a good thing since this project was conceived and planned by bureaucrats and never had a chance of commercial success.
if our GOV take it serious this project will change the destiny of our country