the development on china-pakistan economic …

presented by

Aasim Siddiqui, Former ChairmanAll Pakistan Shipping Association (APSA)Managing Director – Marine Group of Companies

CONTAINER CPEC OBOR PAKISTAN ROUTE TRANSPORT INFRASTRUCTURE INTERMODAL CONNECTIVITY MARITIME ONE BELT ONE ROAD CHINA PAKISTAN ECONOMIC CORRIDOR BELT AND ROAD INITIATIVE

THE DEVELOPMENT ON

CHINA-PAKISTAN ECONOMIC CORRIDOR (CPEC)UNDER ‘BELT & ROAD INITIATIVE’

ONE BELT-ONE ROAD (OBOR)SILK ROAD ECONOMIC BELT MARITIME SILK ROAD

Intermodal Routes for Regional Trade Prosperity

China Economic Corridors

Silk Road Economic Corridors

Maritime Silk Road

A GAME CHANGERBELT & ROAD INITIATIVE

Accelerating the Trade Growth

US$1TRILLIONChinese Investment for ‘Belt & Road’ Initiative

70%Global Populationliving along the belt 55%

World GNPpresent in the route 75%

KnownEnergy Resources

35YEARS

To Celebrate Along 100th Anniversary of China by 2049

US$2.5 TRILLIONChinese Trade Growth In Next Decade

In October 2013, President Xi proposed building a close-knit China-ASEAN

community and offered guidance on constructing a 21st Century Maritime Silk Road

to promote maritime cooperation, to finance infrastructure construction and promote

regional interconnectivity and economic integration.

The 21st-Century Maritime Silk Road is designed to go from China's coast to Europe

through the South China Sea and to the Indian Ocean in one route, and from China's

coast through the South China Sea to the

South Pacific

The Silk Road Economic Belt concept was introduced by Chinese President Xi

Jinping during his visit to Kazakhstan in September 2013 and suggested that

China and Central Asia may cooperate to build a Silk Road Economic Belt.

The Silk Road Economic Belt focuses on bringing together China, Central

Asia, Russia and Europe (the Baltic) linking China with the Persian Gulf and

the Mediterranean Sea through Central Asia

SILK ROAD ECONOMIC BELT MARITIME SILK ROAD

LOCAL MERGERS TO SERVICE LARGE VOLUMES

COSCO & China Shipping Group have declared the establishment of the China COSCO Shipping Group, which is now the 4th biggest container shipping company in the world and can service large cargo volumes

TRANSPORT INFRASTRUCTURE

DEVELOPMENT

China has long term global infrastructure investment plan of

developing trade corridors to connect with Europe and other

emerging markets through efficient and cost effective routes

Developing Efficient Trade Corridors to Reach New Markets

CHINESE STRATEGY

WHAT MATTERS THE MOST FORTRADE ROUTES

CARGOVOLUME

1

WHICH REGIONSHAVE HIGH LEVEL OF TRADE

ASIAEUROPE

2

PLAYER WITH HIGHEST VOLUMES OF IMPORT/EXPORT CARGO

CHINA

3

TRADE & ROUTES

GLOBAL CONTAINER TRAFFIC (TEUs)

Source: United Nations Conference on Trade and Development – UNCTAD 2016TEU: 20 Foot Equivalent Units

COUNTRY TEUs

China 199,565,501

United States 48,381,722

Singapore 31,688,000

Korea 26,373,000

Malaysia 24,570,000

United Arab Emirates 20,413,200

Japan 20,257,000

China, Hong Kong SAR 19,580,000

Germany 19,420,700

Spain 14,993,941

CHINA-PAKISTAN ECONOMIC CORRIDOR

DISTANCE & COST ANALYSIS ACROSS VARIOUS TRADE ROUTES

Asia – Europe Central Asia to Arabian Sea

Traditional

TRADE ROUTE

Europe - China



TRADE ROUTE (Traditional)

Europe - China

EUROPE

35 Days

13845 MILESUS$ 2769

44 Days

16507 MILESUS$ 3301

Shanghai Port

AFRICA

EUROPE

MIDDLE EAST

WESTERNCHINA

LONG DISTANCE & HIGH COST

29 Days

11845 MILESUS$ 2369

47 Days

19132 MILES US$ 8026

Kashgar

CENTRAL ASIA

19132 MILES US$ 8026

Route: Eastern Europe - Western China



US$1.80 Per Mile US$0.20 Per Mile

NEW

TRADE ROUTE

Europe - China



32 Days

9597 MILES US$ 4719 China-Pakistan Economic Corridor

Intermodal Transport Network (6 Days)

AFRICA

EUROPE

MIDDLE EAST

WESTERN CHINA

Karachi Port

26 Days

7847 MILESUS$ 1570

KazakistanKazakistan

CENTRAL ASIA

Kashgar

SHORT DISTANCE & LOW COST

9535 Miles Saved41%LOWERCOST

9597 MILES US$ 4719

Route: Eastern Europe - Western China




TRADE ROUTE

Europe - China

TRADE ROUTE

Central Asia-Arabian Sea



AFRICA

EUROPE

MIDDLE EAST

CENTRAL ASIA

SHORT DISTANCE & LOW COST

9298 Miles Saved48%LOWERCOST

2437 MILES US$ 4387

China-Pakistan Economic Corridor

Land Route: Central Asia – Arabian Sea




TRADE ROUTE

Central Asia - Arabian Sea

Mazar-i-Sharif

Ashgabat

Tehran

Almaty Chorgos

Urumqi

10 Days

2437 MILESUS$ 4387

Khunjerab

Karachi

Osh

Tashkent

Kashgar

CREATING ACCESS TO MIDDLE EASTERN, AFRICAN & FAR EASTERN MARKETS



Pakistan

Train Route: Central Asia – China – CPEC – Arabian Sea

Gwadar- Urumqi(2778 Miles)

Arabian Sea

Caspian Sea

Black Sea

Mediterranean Sea

TRADE ROUTE

Central Asia - Arabian Sea

China

Khunjerab

Gwadar

Kashgar

Iran

Turkmenistan

Afghanistan

Uzbekistan

Kazakhstan

Antwerp

expected trade route from Central Asia to access Arabian Sea for Middle Eastern, African & Far Eastern Markets

CPEC – CENTRAL ASIA PACT

“Kazakhstan announced on Tuesdayits support and intention to join theChina-Pakistan Economic Corridor(CPEC) in the long run when its PrimeMinister Karim Massimov assuredvisiting Prime Minister Nawaz Sharifhere that Kazakhstan would like tojoin the mega project as it wouldprovide an alternative route to theCentral Asian State for access to sea.”

The News August 26, 2015

Kazakhstan

“Tajikistan President EmomaliRehmanov assured Pakistan itsresolute support for the infrastructureprojects under the China PakistanEconomic Corridor (CPEC), providinggreater connectivity between Pakistanand Tajikistan, and completion of theCASA-1000 project “

The News November 14, 2015

Tajikistan

“Turkmenistan's PresidentBerdimuhamedov echoed Mr Sharif’sviews about the importance of CPEC andsaid it was a project that wouldguarantee progress and prosperity in theregion. “

The DawnNovember 26, 2016

Turkmenistan Uzbekistan

“Pakistan on Friday formally invitedland-locked Central Asian StateUzbekistan to join the China-PakistanEconomic Corridor (CPEC) and hasmaintained that both the countriesneed to formulate a joint integratedstrategy to exploit the potential oftrade in the region, especially in view ofCPEC.”

The NEWS24 December 2016



CPEC LINKAGES IN GLOBAL TRANSPORT ROUTE

Distance : 12,000 kmTransit Time: 18 Days

YIWU-LONDON

Gwadar Port

KashgarUrumqi

CPEC (Gwadar-Kashgar)1864 miles (6 Days)

CHINA-UNITED KINGDOMCPEC Intermodal-Connectivity

TRAIN

Karachi Port

Port Qasim

PAKISTAN-IRAN-TURKEYCPEC Intermodal-Connectivity

Distance : 6543 kmTransit Time: 13 Days

ISLAMABAD-ISTANBUL

TRAIN

Port Qasim

Kashgar

GwadarPort


Karachi Port

PAKISTAN-IRAN-TURKEY

CHINA

PAKISTAN-IRAN-TURKEYCPEC Intermodal-Connectivity Distance : 11,000 km

Transit Time: 23 Days

ISLAMABAD-ISTANBULROAD

CPEC (Northern Corridor)

Kashgar

Kunjrab Pass

CHINA-IRANCPEC Intermodal-Connectivity

TRAIN


Distance : 10,500 kmTransit Time: 14 Days

YIWU-TEHRAN

Gwadar

Port

Kashgar

Urumqi

Zahedan

Istanbul

Karachi Port

Port Qasim

CHINA IN GLOBAL TRANSPORT INFRASTRUCTURE

China-Pakistan Economic Corridor Intermodal Route(6 Days)

ONE BELT – ONE ROAD (OBOR)CPEC Linkages with International Trade Routes

CHINA-PAKISTAN ECONOMIC CORRIDORINVESTMENT | INFRASTRUCTURE DEVELOPMENTS | PROJECTS

INVESTMENTSCHINA-PAKISTAN ECONOMIC CORRIDOR


NORTHERNSECTION

CENTRAL SECTION

SOUTHERNSECTION

Energy

Rail

Road

Gwadar Port

Fibre Optics

38

10.79

6.10

0.79

0.04

US$ 62 BILLIONCHINESE INVESTMENT IN KEY PROJECTS

US$ Billion

TRANSPORT INFRASTRUCTURE

Road Infrastructure Projects

# Project NameLength (km)

Estimated Cost(US$ M)

1 KKH Phase II (Thakot -Havelian Section) 118 1,305

2 Peshawar-Karachi Motorway (Multan-Sukkur Section) 392 2,846

3 Khuzdar-Basima Road N-30 (110 km) 110

4 Upgradation of D.I.Khan - Zhob, N-50 Phase-I (210 km) 210

5 KKH Thakot-Raikot N35 remaining portion (136 Km) 136

Rail Infrastructure Projects6 Expansion and reconstruction of existing Line ML-1 1,872 8,172

7 Havelian Dry port 40

8 Capacity Development of Pakistan Railways



MAJOR ROUTES

Peshawar-Karachi Motorway (1681 km)ML1 Railway Line (1872 km)

5 hours travelling time will reduce to 1 hour through modern tunnels

Karakoram Highway(740 km)

Khunjerab

Border

Sost Dry Port

Gilgit Dry Port

Havelian Dry Port

Sialkot Dry Port

Quetta Dry Port

Lahore Dry Port

Multan Dry Port

Bin Qasim

Dry Port

Special Economic Zones (approved)

Makran Coastal HighwayGwadar-Karachi (650 km)

Sost Dry Port

Gwadar Port

1st CPEC Trade Convoy

MAJOR ROUTES

Khunjerab

Border

Sost Dry Port

Gilgit Dry Port

Havelian Dry Port

Sialkot Dry Port

Quetta Dry Port

Lahore Dry Port

Multan Dry Port

Bin Qasim

Makran Coastal Highway (630 km)

Dry Port


MAJOR ROUTES

Khunjerab

Border

Sost Dry Port

Gilgit Dry Port

Havelian Dry Port

Sialkot Dry Port

Quetta Dry Port

Lahore Dry Port

Multan Dry Port

Bin Qasim


MOTORWAYM14

HIGHWAYN55 HIGHWAYN50 HIGHWAYN25

HIGHWAYN85

The Prime Minister of Pakistan travelled on M8 motorway in a military jeep driven by Chief of Army Staff.

MOTORWAYM8

M14

N50

M8

N55

RateoderoN25

Hoshab

N85

Basima

Khuzdar

N30

Dry Port


MAJOR ROUTES

Khunjerab

Border

Sost Dry Port

Gilgit Dry Port

Havelian Dry Port

Sialkot Dry Port

Quetta Dry Port

Lahore Dry Port

Multan Dry Port

Bin Qasim


M14

N50

M8

N55

RateoderoN25

Hoshab

N85

Basima

Khuzdar

N30

Dry Port


SNO SPECIAL ECONOMIC ZONES AREA (acre) INDUSTRY

1Hattar Phase – VII SEZKyber Pakhtunkhwa

424 Mining, Marble, Fruit Processing

2

Quaid-e-Azam Apparel Park, SheikhupuraPunjab

1536 Textile & Cotton

3

M-3 Industrial City, FaisalabadPunjab

4356Textile, Engineering & Construction, Chemicals, Pharmaceuticals, Eletronics, Food & Beverages, Information Technology

4

Value Addition City, FaisalabadPunjab

225Textile, Chemicals, Pharmaceuticals, Engineering, Information Technology

5Khairpur SEZSindh

140 Agro based Industry & Date Processing

6Korangi Creek SEZSindh

240

Consumer Goods, Food & Pharmaceuticals, Garments, Value Added Textile, Light Engineering, Packaging & Printing, Warehouses/Logistics

7Bin Qasim SEZSindh

930

Light Engineering, Auto Vendors, Steel Fabricating Units Chemical & Food, Pharmaceuticals, Electrical & Consumer Goods and Furniture

APPROVED 7851 Acres

SNO. SPECIAL ECONOMIC ZONES AREA (acre) INDUSTRY

1ICT Model Industrial ZoneIslamabad

500Steel & Steel Fabrication, Food Processing & Beverages, Pharmaceutical & Chemicals, Printing & Packaging, Light Engineering etc.

2Development of IP on Pakistan Steel LandIn Port Qasim near KarachiSindh

1500 Steel, Auto & Allied, Pharmaceutical, Chemical, Printing & Packaging, Garment

3Moqpondass, SEZGilgit-Baldistan

250 Marble/Granite, Iron Ore Processing, Fruit Processing

4Mirpur, Special Economic ZoneAzad Jammu Kashmir

1078 Mix Industry

5Mohmand Marble CityFATA

350 Marble & Other Mix Industry

6Allama Iqbal Industrial City (M3), FaisalabadPunjab

3000 Textile, Steel, Pharmaceuticals, Engineering, Chemicals, Food Processing, Plastics, Agriculture Implements

7Punjab-China Economic Zone (M2), SheikhupuraPunjab

5000 Mix Industry

8Rashakai Economic Zone (M1), NowsheraKhyber Pakhtunkhwa

1000 Fruit & Food Processing, Textile Stitching and Knitting

9Bostan Industrial ZoneBalochistan

1000Fruit Processing, Agriculture Machinery, Pharmaceuticals, Motor Bikes Assembly, Chromites, Cooking Oil, Ceramic Industries, Electric Appliances, Halal Food Industry

10Khuzdar Industrial ZoneBalochistan

5000 Fruit Processing, Agriculture Machinery, Pharmaceutical, Motor Bikes Assembly

11China Special Economic Zone – DhabejiSindh

1000 Feasibility Under Study

12Keti Bundar ThattaSindh

3200 Feasibility Under Study

SPECIAL ECONOMIC ZONES (SEZs)

PLANNED 22878 Acres

Railway Routes

Up-gradation of Tracks

New Locomotives Imported

Kotlajam

ML-2 Extenstion(1050 km)

ML-3 Extenstion (560 km)

Planning New Rail Link

1254 km

1872 km

1560 km

Track-Access Projects under Public-Private Partnership

Gwadar East-Bay Expressway

The Eastbay Expressway Project envisages building a 19km-long road, connecting the GwadarPort with the Makran Coastal Highway.

EAST BAY EXPRESSWAY

Ground Breaking: November 2017Expected Completion Date: September 2019



Tax Exemption: 23 years Covered Area: 2300 acres.

GWADAR FREE ZONECHINA-PAKISTAN ECONOMIC CORRIDOR


Date: 29-31 January 2018

EXPO CENTRE GWADAR FREE ZONECHINA-PAKISTAN ECONOMIC CORRIDOR


GWADAR DESALINATION PLANT

Capacity: 250,000 Gallon Per Day



GWADAR PORT

GWADAR PORT MASTER PLAN

100 BERTHS 400 Million Tons per annum

The potential of ‘CPEC’ will be realized when

Gwadar Port capacity reach its peak of

cargo handling by 2045



CHINESE INVESTEMENT IN GLOBAL PORTS

105MILLION

TEUs

EUROPE

199MILLION

TEUs

CHINA

REGIONAL PROSPERITYTHE HUB OF

24MILLION

TEUs

AFRICA

ONE BELT – ONE ROAD (OBOR)CPEC Linkages with International Trade Routes

LEVERAGING TRADE BENEFITS

WITH REGIONAL CONNECTIVITY

INVESTING IN ‘WIN-WIN’ STRATEGY

OBOR

THANK YOU

the development on china-pakistan economic …

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