Gawadar

A Gateway to CARs

(Central Asia Republic)

Pearls

• Umer Safdar

• Shiraz Khalid

• Sadia Razaak

• Roshan Akber

Location

Location

• Located at the entrance of the Persian Gulf and about 460 kms from Karachi .

• Gawadar is located on the western end of coast of Balochistan and have 600 K m long coastline along the Mekran coast of the Arabian Sea;

History

• Development of a deep-water port along the coast of Balochistan has been under consideration by the Government since 1965.

• Hostile activities in 1965 and 1971, when the only port of Karachi, which catered for the entire trade of Pakistan, because vulnerable to aggression and was further supplemented by India’s missile attack on Kemari oil installation area

History

• In 1965, the government of Pakistan constituted a five members committee headed by Rear admiral (Retd) Akbar H. Khan.

• The committee identified eight possible sites that were Gadani, Somiani, Ormara, KhorKalmat, Pasni, Hingol, Gawadar, and Jiwani.

History

• Ports Master Plan studies considered an alternate to the Persian Gulf Ports to capture the transit trade of the Central Asian Republic (CARs)

• The ADB studies, however considered Gwadar to have the most advantageous location for such an alternative port in the region, which could handle mother ships and large oil tankers in due course

History

• Technical and financial feasibilities therefore were under taken resulting in decisions for the development of Gwadar Port by the Govt. of Pakistan

• The Project started on 22 March 2002, is on fast track and will Inshaullah complete in schedule time i.e. March 2005.

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.

Benefits

• Diversion of influx of human resources from up country to Gwadar instead of Karachi.

• 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.

Benefits

• Will become a Regional Hub for major trade and commercial activities.

• Serve as an alternate port to handle Pakistani trade in case of blockade of existing ports.

• To help the PN.

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

Phase - I

• 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 up to 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 2005

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

• 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 worlds most strategically located port in this part of the world

Phase- II

• 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 worlds most strategically located port in this part of the world

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. Loan US$ 58 Million• Buyer’s 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-Panjgoor-Dalbandin (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

Land Resource• 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

Potential Projects at GWADAR Port

• Fish Processing.• Shrimp farming, Shrimp /Lobsters• Crabs processing• Training services in Fisheries and Aquaculture• Cold storages, Ice factories• Port Management projects.• Seawater Reverse Osmosis Desalination Plants for

profitable purpose

Potential Projects at GWADAR Port

• Hotels Restaurants & Resorts• Business Development• Date Processing• Service Provider• Canned food, Gravel Crush plant• Oil Palm cultivation (Govt. of Balochistan can

provide land on easy terms)• Water sports center and recreation facilities.

Potential Projects at GWADAR Port• Marine & Automobile repair workshop • Cluster for Internet service providers• Renewable Energy; wing, solar- IPP• Warehouses• Clearing & Forwarding agency• Boat building & naval architecture institute• Hospitals & Clinics• Oil Storage tankers• Re-rolling Mills• Ferry Service for Karachi Ormara-Pasni- Gwadar and up to Oman

and Dubai