The successful implementation of the Gwadar-Khunjerab-Kashgar rail network will help China secure oil supply and commercial routes on the Indian Ocean and provide a major boost to Pakistan’s sinking economy. PHOTO: FILE
Newly-elected Prime Minister Mian Muhammad Nawaz Sharif, in his maiden speech, revealed that Islamabad and Beijing have expressed a keen desire to implement the Gwadar-Khunjerab-Kashgar rail network. The project had been discussed during talks with Chinese Premier Li Keqiang in his recent visit to Pakistan.
While PM Sharif said the actual details of the project would be shared at a later date, he also stated that both countries will soon establish a taskforce to complete the project within the next five years, indicating that it may be implemented on a fast-track basis.
The successful implementation of the Gwadar-Khunjerab-Kashgar rail network will help China secure oil supply and commercial routes on the Indian Ocean, furthering its plans to secure yet another strategic energy and trade corridor. Besides, the project is expected to provide a major boost to Pakistan’s sinking economy.
The project is part of China’s ‘Strings of Pearl’ strategic initiative, under which the economic giant wants to secure maritime centres in Pakistan, Sri Lanka, Bangladesh, Maldives and Somalia. The plan highlights China’s growing influence on the region’s ports and airfields. The previous government has already handed over administrative control of the port to China.
The project, which will root Gawadar as a nexus point connecting the West with Central China, was the only scheme mentioned by the new premier in his first speech, and seems close to his stated vision of building mega-projects. It also indicates the new government’s desire to receive economic benefits from the world’s second-largest economy.
Notwithstanding successive governments’ amenability to the Chinese cause, the implementation of the project, originally conceived over a decade ago, is dependent upon Pakistan’s ability to overpower regional and international forces working against it.
The United States and the United Kingdom are trying to keep a check on China’s increasing interests in the Indian Ocean through Bahrain and Dubai, insiders say. The western powers are reportedly offering a New Silk Route alternative to lure Pakistan away from China’s ‘friendly’ grasp.
“Some countries are not happy with the Pakistan-China relationship, and Pakistan will have to make inroads through diplomacy alone,” observed Akram Zaki, a former diplomat and an expert on Pakistan-China relations. He said the Gwadar-Kashgar project will increase China’s stake in Pakistan’s security, besides the economic dividends of the project.
More importantly, the success of the project depends on China’s resolve to finance it: the actual cost is yet to be determined, but 2005 estimates showed it over $10 billion.
“The project was conceived many years ago, but it was not pursued actively in the past,” Tariq Puri, former executive director of the Trade Development Authority of Pakistan, told The Express Tribune. Puri had been part of a delegation that visited Urumqi and Kashgar and reviewed the possibility of implementing this project.
The project will route Chinese goods destined for the Middle East and other global destinations from Urumqi through Gwadar. It will save the Chinese half of their current voyage time and secure their oil supplies and commercial routes. The distance from Dubai to Khunjerab is 3,300 miles; the distance from Dubai to Shanghai via the Indian Ocean is about 9,000 miles.
“China will be gaining virtual control of the Indian Ocean and the energy and trade corridor from the Gulf,” Puri said. He said China’s plans also provide a trade opportunity to Pakistan, as the northern neighbour will be the next big consumer market for Pakistani products in the coming years.
According to an official of the Planning Commission, such a major investment will create thousands of jobs, besides boosting economic growth and bringing in prosperity in Balochistan, a historically underdeveloped province. Pakistan will also receive a transit fee for all goods passing through its territories. However, the project’s implementation is not without economic and political costs: Pakistan is solely dependent on China for the construction of the rail network, as its cost runs higher than that of the Diamer Basha Dam.
Published in The Express Tribune, June 6th, 2013.
Like Business on Facebook to stay informed and join in the conversation.
COMMENTS (24)
Comments are moderated and generally will be posted if they are on-topic and not abusive.
For more information, please see our Comments FAQ
1731583017-0/diddy-(42)1731583017-0-405x300.webp "article")
1719315628-0/BeFunky-collage-(8)1719315628-0-165x106.webp "article")
I think that is very good project which can be harmful for local industries which are providing poor quality products at expensive rates to people here in Pakistan China's more influence in Pakistani market will create a healthy competition with local industries giants providing out dated technology products it is also possible if China will only use these routes there will be no impact on Pakistani Trade Market
@truthbetold Ji : . Energy security is important for China. But, Xinjiang and Tibet are very sparsely populated areas with little or no industry. Most of China’s energy needs are in mid/eastern China. It would make little sense in investing $15B to pump gas and oil through the Gwadar-Khsagar (over 5000) miles of land route to industrial areas of China. It would be cheaper for China to make peace with India and use Calcutta/Bangladesh ports to directly pipe oil to China. Also, China is already getting energy supplies from Central Asian Republics through Xinjiang.. . I could not agree more with you. . 1. Xiinjiang does neither need IMPORTED Oil nor Natural Gas . 2. Xinjiang exports Huge Amounts of Natural Gas and Oil to the Rest of China . 3. To bypass the Mallacca Straits the Chinese have built Kyaukpyu deep sea port - about 50 to 100 Miles South of Akyab-Sitwe. The Chinese have also built Pipelines for Oil and Natural Gas upyo Kunming in China from the the Port of Kyaukpyu. . As such I do not foresee the Chinese Importing Oil and Natural Gas-LBG via Gwadar for use i the Eastern and Southern China.
Cheers
ET Moderators, my post is analytical and factual. I know it is difficult for two or three moderators to go through so many posts to watch for violation of the rules. My posts are always within the ET guidelines and to the fact. Please post my comments.
Amid all the euphoria, common sense and logic demands that a dispassionate analysis be done on this subject.
We can all agree that China is not going to do anything, especially plunking down hard money, if that is not in-line with its national interests. What national interest that this Gwadar to China link serve?
Before we answer that, let's list some of China's interests in the region: 1) Keeping India tied down economically and militarily, 2) Eliminate Xinjiang terrorism that finds sustenance in Pakistan and quell any independence and freedom movement there, 3) Eliminate all Tibetan nationalists and freedom aspersions, 4) Energy security on shipping lanes, 5) Interests in Afghanistan.
Now, let’s analyze each one of the five. Of course, keeping India tied down is/has been a very high geopolitical priority for China. The Gwadar port, but not the connection to Khasgar, does help China to base its warships and submarines to threaten India. To eliminate Xinjiang terrorism, China doesn’t need the Gwadar-Khasgar project. It can just call Pakistani strongman, who will immediately jump through all hoops to please China. So, a telephone call is a lot cheaper than investing $15B on this project.
Tibet has no bearing on this.
Energy security is important for China. But, Xinjiang and Tibet are very sparsely populated areas with little or no industry. Most of China’s energy needs are in mid/eastern China. It would make little sense in investing $15B to pump gas and oil through the Gwadar-Khsagar (over 5000) miles of land route to industrial areas of China. It would be cheaper for China to make peace with India and use Calcutta/Bangladesh ports to directly pipe oil to China. Also, China is already getting energy supplies from Central Asian Republics through Xinjiang.
China doesn’t have much interest in Afghanistan other than preventing terror havens and a few mining projects.
From the Article : The successful implementation of the Gwadar-Khunjerab-Kashgar rail network will help China secure oil supply and commercial routes on the Indian Ocean and provide a major boost to Pakistan’s sinking economy. . When did this Gwadar-Khunjerab-Kashgar construction commence? . The Construction Area is a Hive of Activity. Would be grateful to know as to when this Link be completed. . Cheers
@Naveen:
Yeah but to travel from Gwadar to China is shorter...nutcase...and Pakistan as a Chinese friend will give more incentives unlike India....
@Logic Gate: Offcourse it will benefit...Jobs, taxes economic stability...development of remote areaon expenses of some one else...
Wht else do you need...!!!!
I really hope that this project is executed asap which will bring enormous dividends to Pakistan and China.
@Cosmo: Cynicism is only for those who are hopelessly addicted to the West's fast life without deliberating on the consequences. Grow up. Have a nice day and Salams
this was one of reason of removing Musharraf...and movement of restoration of judges was funded from outside..the forces which brought his success will never allow him
"“China will be gaining virtual control of the Indian Ocean and the energy and trade corridor from the Gulf,” Puri said."
With this, China will gain virtual Control of 'Indian' Ocean! Really?
Right next to you is a country from whose very name the Ocean derives its name and that has the Ocean's largest uncontested EEZ, longest Coastline (bar perhaps Indonesia) located right at the East-West Centre of Ocean and with nothing but Antactica down its Southern tip. You think one derelict port located in one of the most lawless province of Pakistan (if connnected by rail criss crossing through the mighty himalayas to one of China's poorest province) can replace all that. Perhaps you should throw away the colonial Mercator Projections and replace them with the more accurate 'Gall-Peters Projection' to get a better geographical perspective on Indian Ocean realm-> http://en.wikipedia.org/wiki/File:Gall%E2%80%93PetersprojectionSW.jpg
construction cost of basha dam is 14Billion dollar..and even 15billion dollar is required for this..then who will finance this project..i as a civil engineer dont think construction of rail from hawevlian to khunjarab is possible...we are not able to construct the small raods on the these mountainous areas and mian hb is talking about rail.....please mian shb talk about something which is practical
A five year target to build the railway seems unrealistic in the extreme given that the Karakoram Highway link to China has yet to be restored after its inundation caused by a landslide damming the Hunza river in January 2008 at Gojal / Attabad.
now the chinese will control from Balochistan to karakoram.. free movements of their goods and products, will flood the market and wipe off our local industries even faster. No other country in chinese neighborhood has handed an opaque communist disctatorian regime key strategic assets and key locations unlike beggars like us. We should have gather our own resources and build the port ourselves. Invite private players. Our govt should support local players than supporting these chinese..
More Contracts For Ittefaq Foundry to Build Train Tracks.
I am Sorry, But I Fail To See How Pakistan Sinking Economy Will Benefit From This Project?
And the first time the infrastructure is damaged by terrorists, I can you picture the response of China.
unlike when musharraf did, i hope they order the locomotive that are not lower than the platforms! Or the narrow gauge for the broad gauge lines! It is a good idea though!
If Gwadar port is developed purely as a commercial port and this plan to link Gwadar to China materializes, it would be very good for India too as Pakistan has to wipe out terrorism totally from its land. India need not worry about China controlling Indian Ocean. The economic gains to India due to elimination of terror activities from Pakistan will be immense.
Hail my Lord !! We shall obey and serve you my Lord, China !!
Sounds like a win-win formula for not only the Chinese and Pakistanis but also for consumers in the Middle East and Africa. If China can transport goods cheaper through Pakistan, the cost of the goods should become more affordable for consumers at other destinations. Nawaz Sharif appears to be focusing on the economy and essential infrastructure which is exactly what Pakistan needs at this time. He did a great job with the motorways. I hope he can deliver once again!
Very strange. This is first time I heard about it. The project was discussed during Musharraf era...stranger if the silence of India and anti-China loddy. Probably like me they did not know and have been caught off guard.
This will open up Baluchistan and a large part of the NWFP and bring about far reaching changes provided Pakistanis dont bungle it as they done before. I hope supply is not diverted to Ittefaq Industry as was done in case of heavy mechanical and electrical complexes of Taxila.
Finally. This is crucial for Pakistan and will be a massive boost to the economy.
Very important decision. But dont just link China with Gawadr, rather spread railways and roads networks in the country. It will bring prosperity to neglected regions.