IMPORTANCE

GEOGRAPHIC POINT OF VIEW :Gwadar Port is the third port of Pakistan - Karachi and Port Qasim being the other two. Gwadar borders on Arabian Sea and lies in the Balochistan Province. It is about 533 km from Karachi and 120 km from the Iranian border. Gwadar Port is located at the mouth of the Persian Gulf and outside the Straits of Hormuz. It is near 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. It is situated near the mouth of this strategic body of water, and about 400km from the Strait of Hormuz, through which about 40% of the world's oil tankers pass. Gwadar is located on the Gulf of Oman close to the entrance of the Persian Gulf, about 460 kilometres west of Karachi. 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 in due course. It will act as catalyst for large number of related projects like:1. 2. 3. 4. 5. Trans-shipment of bulk cargo Oil storage, refinery and petrochemicals Export processing and industrial zones Export of minerals/livestock Services (hotels, accommodation, tourism)

MILITARTY POINT OF VIEW :The Gwadar port project will transform Pakistan's Navy into a force that can rival regional navies. The government of Pakistan has designated the port area as a "sensitive defense zone." The Gwadar port will rank among the world's largest deep-sea ports. The port provides China a strategic foothold in the Arabian Sea and the Indian Ocean.

Benefits :Besides the Geostrategic importance mentioned earlier, some of the evident economic benefits of the development of Gwadar Port are: Capitalize on opportunities for trade with landlocked Central Asian States and Afghanistan. Promote trade and transport with Gulf States. Trans-shipment essentially of containerized cargo. Unlock the development potential of hinterland. Diversion of influx of human resources from up country to Gwadar instead of Karachi. Socio economic uplift of the province of Balochistan. Establishment of shipping related industries. Oil storage, refinery and petrochemicals Export Processing and Industrial Zones Reduce congestion & dependency on existing Ports Complex at Karachi/PQA. Serve as an alternate port to handle Pakistani trade in case of blockade of existing ports. Will become a Regional Hub for major trade and commercial activities.

Scope of Work The development of Gwadar Deep Sea Port as per approved PC-I and Master Plan is to be undertaken in two phases. Phase-I will comprise of:3 Multipurpose Berths Length of Berths 602m 4.5 Km long Approach Channel Dredged to 11.5m-12.5m. Turning Basin 450m dia. One 100m Service Berth. Related port infrastructure and port handling equipment & Pilot Boat, Tugs, Survey Vessel etc.

The port will be equipped with the essential port handling equipment and other infrastructure required for smooth operations of a modern port. On completion of Phase-I, the Port will handle Bulk Carriers of upto 30,000 DWT and Container Vessels of 25,000 DWT. Phase-I will be completed at a cost of Rs.14.9 Billion (US$. 248/- Million) and will complete in 36 months i.e. March 3005.
Phase II

This Phase of the Project is planned to be built on BOO/BOT basis at an estimated cost US$. 600 Million. It will comprise of 9 additional berths as per following details:-

4 Container Berths. 1 Bulk Cargo Terminal (to handle 100,000 DWT ships). 1 Grain Terminal. 1 Ro-Ro Terminal. 2 Oil Terminals to handle 200,000 DWT ships. Phase II of the project involves construction of more berths on BOT basis including two container berths, one bulk cargo terminal, one grain terminal with capacity handling vessels up to 100,000 DWT, one roll on/ roll off terminal, two oil piers for vessels up to 200,000 DWT and future expansion of two container berths. On completion of the project, Gwadar Deep-sea port would be on of the world's most strategically located port in this part of the world.

On successful completion of Phase-I, it is anticipated that the private sector would come forward to invest in the second phase of the Project. It is envisaged that the complete development of such a Mega project will take 8-10 years depending on the active participation of the private sector.

Cost of The Project

Total amount equivalent to Rs 14.9 Billion (248 million US dollars) were approved by ECNEC for Phase-I of the project. The financial agreement for development of Phase-I was signed with the Govt. of China on 10 August 2001 under which the Chinese will provide US$. 198 Million and the Govt. of Pakistan will provide US$. 50 Million. Chinese: Grant US$ 18 Million. New Grant Assistance US$ 31 Million. New Interest Free Loan US$ 31 Million Govt. Concessional Loan US$ 58 Million Buyers Credit US$ 60 Million Total US $ 198.00 Million Pakistani: Rs. 3000 Million (US 50.00 Million) in Local Currency.

Additional Development Cost:

Additional development costs were also envisaged for Electrical Supply 132 KV Transmission Line from Turbat to Gwadar at an approx cost Rs.360.00 million and a Railway line from Gwadar-PanjgoorDalbandin (515 Km) at approx cost of Rs.8, 500 million. This is however not a part of the sanction to the Gwadar Port Development Authority.

Human Resource
The Chinese have mobilized 450 personal from China and hired 512 local workmen as per following detail:Chinese: 450 Pakistani: 512 Civil Works and Infrastructure Development: The design and construction of residential buildings and civil works of various port operation buildings and related infrastructure development is to be undertaken by Pakistani contractors and firms out of the US dollars 50 Million allocated for the Project. In this regard consultants have been hired and process for prequalification of contractors has commenced. Similarly, award of contract for the construction of residential area was approved by the MOC in June 2003 and the Contractor has already fully mobilized and a construction activity has started.

Master Plan of GWADAR:

Concurrent with the Port development a Master Plan of Gwadar has been approved by Balochistan Government through NESPAK and which has been a hot topic of discussions at various forums. Implementation of the Master Plan is the responsibility of Govt. of Balochistan. Physically no headway has been made so far which is a matter of concern. The following potentials have been identified in the Master Plan of Gwadar Deep Sea-port Project: Increased trade to and from Balochistan and Iran.

Trade potential from Central Asian countries through Afghanistan. Transit cargo (liquid and dry bulk) Warehousing and assembly industries (EPZ) Oil storage, refineries, petrochemical industries etc. Handle the shipping traffic of the region. Gwadar Master Plan envisages development of about 18,600 hectares of land for this project including the followings: Port development in Phase 1 & 11 on 400 hectares. An Export Processing Zone of 74 hectares located on land adjacent to the port in East Bay. A Special Industrial Zone of about 4,000 hectares lying to the north of the town. An oil refinery of 1,000 hectares located to the north east of the town, linked to the proposed oil terminal by an underground pipeline across East Bay. A residential area of 400 hectares stretching north of the existing town along West Bay. To bring Gwadar close to the national mainstream, 700 Km long Makran Coastal Highway is in advanced stage of implementation. It will link Gwadar with Pasni, Ormara and Karachi. An other regional linkage is the Gwadar Ratto-Dero motorway linking it with Indus Highway through Turbat, Awaran and Khuzdar. A rail link is also planned to connect Gwadar to Quetta and Zahidan. Civil Aviation Authority also plans to upgrade the existing length of runway from 5,000 ft to 15,000 ft for operation of wide bodied jet air-crafts. The extension work will begin by end August, 2003 and the extension facilities will be available for use by end 2004.

Investment Opportunities
Some of the evident investment opportunities:Master Plan related infrastructure i.e. internal roads & services, water and power and communication services for the new township and the Industrial Zone. Private owned Ware Houses and Cold Storages. Private cargo handling equipment and trucking yards. Corporate Infrastructure i.e. offices for operating firms & agencies. Development of Industrial Zone and Industries. Development of Commercial/residential areas & buildings. Labour related amenities for thousands of workers employed on developmental work of Great Gwadar. Hotels & Motels. Hospitals, Colleges & Schools. Tourism related industry. Marine related industry i.e. shipyards, dry dock and repair yards. Marine Fuel bunkering for visiting ships to include large fuel storages and mobile barges etc. Oil refinery and large oil storages. Ferry services between Gwadar-Karachi/Oman/Bunder Abbas and UAE. Industrial Export Processing Zone Hinterland road; Gwadar Rattodero Expressway (735 km) will pass through Turbat-AwaranKhuzdar & Shahdad Kot. Gwadar-Quetta (via Turbat-Panjgoor-Kharan-Nushki) requires to be widened and improved. This link road will reduce the distance to Quetta from 1090 km to 795 km. Railway; Gwadar Panjgoor-Dalbadin (515 km). Gwadar-Afghanistan via Quetta by National Highway- N-25.

Potential Projects at GWADAR Port

Gwadar being unexplored territory till to date as far as business is concerned; a lot of business activities are possible. There are numerous businesses that offer sizeable profits for the investors in Gwadar. Few are mentioned as under:
1 2 3 4 5 6 7 8 9 10 11 12 Fish Processing 13 Shrimp farming, Shrimp /Lobsters 14 Training services in Fisheries and Aquaculture 15 Port Management projects. 16 Hotels Restaurants & Resorts 17 Date Processing 18 Canned food, Gravel Crush plant 19 Water sports center and recreation facilities.

Crabs processing Cold storages, Ice factories Seawater Reverse Osmosis Desalination Plants for profitable purpose Business Development Service Providers Oil Palm cultivation (Govt. of Balochistan can provide land on easy terms) Marine & Automobile repair workshop Renewable Energy; wing, solar- IPP Clearing & Forwarding agency Hospitals & Clinics Re-rolling Mills

Cluster for Internet service providers Warehouses Boat building & naval architecture institute Oil Storage tankers. Ferry Service for Karachi Ormara-Pasni- Gwadar and up 24 to Oman and Dubai
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