Gwadar port
Encyclopedia
Gwadar
Gwadar also known as Godar is a developing port city on the southwestern Arabian Sea coast of Pakistan. It is the district headquarters of Gwadar District in Balochistan province and has a population of approximately 50,000.Gwadar is strategically located at the apex of the Arabian Sea and at the...
in Balochistan province of Pakistan
Pakistan
Pakistan , officially the Islamic Republic of Pakistan is a sovereign state in South Asia. It has a coastline along the Arabian Sea and the Gulf of Oman in the south and is bordered by Afghanistan and Iran in the west, India in the east and China in the far northeast. In the north, Tajikistan...
at the apex of the Arabian Sea and at the entrance of the Persian Gulf
Persian Gulf
The Persian Gulf, in Southwest Asia, is an extension of the Indian Ocean located between Iran and the Arabian Peninsula.The Persian Gulf was the focus of the 1980–1988 Iran-Iraq War, in which each side attacked the other's oil tankers...
, about 460 km west of Karachi
Karachi
Karachi is the largest city, main seaport and the main financial centre of Pakistan, as well as the capital of the province of Sindh. The city has an estimated population of 13 to 15 million, while the total metropolitan area has a population of over 18 million...
and approximately 75 km (46.6 mi) east of Pakistan's border with Iran
Iran
Iran , officially the Islamic Republic of Iran , is a country in Southern and Western Asia. The name "Iran" has been in use natively since the Sassanian era and came into use internationally in 1935, before which the country was known to the Western world as Persia...
. The port is located on the eastern bay of a natural hammerhead-shaped peninsula jutting out into the Arabian Sea from the coastline.
Gwadar Port is managed by the Gwadar Port Authority.
Gwadar Port is being constructed in two phases with heavy investment from China
China
Chinese civilization may refer to:* China for more general discussion of the country.* Chinese culture* Greater China, the transnational community of ethnic Chinese.* History of China* Sinosphere, the area historically affected by Chinese culture...
. Technical and financial feasibility studies were commenced by the Government of Pakistan
Government of Pakistan
The Government of Pakistan is a federal parliamentary system, with an indirectly-elected President as the Head of State and Commander in Chief of the Pakistani Armed Forces, and an indirectly-elected Prime Minister as the Head of Government. The President’s appointment and term are...
in 1993 but construction did not commence until 2002. The Gwadar Port was built on a turnkey basis by China
China
Chinese civilization may refer to:* China for more general discussion of the country.* Chinese culture* Greater China, the transnational community of ethnic Chinese.* History of China* Sinosphere, the area historically affected by Chinese culture...
. It was inaugurated in the spring of 2007 by then Pakistani President General Pervez Musharraf. Upon completion of the first phase, the Port of Singapore Authority was hired for the management of the Port. Gwadar Port is now being expanded into a deep sea port and naval base with Chinese technical and financial assistance. Gwadar Port became operational in 2008 with the first ship to dock bringing 72.000 tonnes of wheat
Wheat
Wheat is a cereal grain, originally from the Levant region of the Near East, but now cultivated worldwide. In 2007 world production of wheat was 607 million tons, making it the third most-produced cereal after maize and rice...
from Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
by the vessel
Vessel
Vessel may refer to:*Marine vessel or boat*Vessel element, a narrow water transporting tube in plants*Bowl *Bridge-spouted vessel, a particular design of pitcher that is a Mediterranean vessel form...
.M.V POS GLORY which was handled by M/S GURAB LINES Shipping Gwadar
Gwadar
Gwadar also known as Godar is a developing port city on the southwestern Arabian Sea coast of Pakistan. It is the district headquarters of Gwadar District in Balochistan province and has a population of approximately 50,000.Gwadar is strategically located at the apex of the Arabian Sea and at the...
. Pakistan's Minister of Ports and Shipping Sardar Nabil Ahmed Khan Gabol officially inaugurated the Port on 21 December 2008.
China has acknowledged that Gwadar’s strategic value is no less than that of the Karakoram Highway
Karakoram Highway
The Karakoram Highway is the highest paved international road in the world, but at its peak at the China-Pakistan border it is only paved on the Chinese side. It connects China and Pakistan across the Karakoram mountain range, through the Khunjerab Pass, at an altitude of as confirmed by both...
, which helped cement the China-Pakistan relationship. Beijing is also interested in turning it into an energy-transport hub by building an oil pipeline from Gwadar into China's Xinjiang
Xinjiang
Xinjiang is an autonomous region of the People's Republic of China. It is the largest Chinese administrative division and spans over 1.6 million km2...
region. The planned pipeline will carry crude oil sourced from Arab
Arab
Arab people, also known as Arabs , are a panethnicity primarily living in the Arab world, which is located in Western Asia and North Africa. They are identified as such on one or more of genealogical, linguistic, or cultural grounds, with tribal affiliations, and intra-tribal relationships playing...
and African states. Such transport by pipeline will cut freight costs and also help insulate the Chinese imports from interdiction by hostile naval forces in case of any major war.
Commercially, it is hoped that the Gwadar Port would generate billions of dollars in revenue
Revenue
In business, revenue is income that a company receives from its normal business activities, usually from the sale of goods and services to customers. In many countries, such as the United Kingdom, revenue is referred to as turnover....
s and create at least two million jobs
Employment
Employment is a contract between two parties, one being the employer and the other being the employee. An employee may be defined as:- Employee :...
. In 2007, the government of Pakistan handed over port operations to PSA Singapore
Port of Singapore
The Port of Singapore refers to the collective facilities and terminals that conduct maritime trade handling functions in Singapore's harbours and which handle Singapore's shipping...
for 25 years, and gave it the status of a Tax Free Port for the following 40 years.
Salient features
Phase 1:Port Administration Complex
Multi-Purpose Terminal
11.5 metre deep Channel
Phase 2:
RO-RO Berth
Container Terminal
Turning Basin
Phase 3:
Grain & Bulk Terminal
1 km Approach Channel
Phase 4:
Oil Terminal
Turning Basin for Oil Tankers
Breakwater
Lighthouse
After completion:
Number of Berths: 12
Channel Length (Km): 4.5
Channel Depth (m): 20
Port Operations
PSA InternationalPSA International
PSA International Pte Ltd, formerly Port of Singapore Authority is the second largest port operator in the world. The company's flagship operations are PSA Singapore Terminals, PSA HNN and PSA Marine...
was scheduled to take over management of Gwadar Port by the end of January 2007. Port of Singapore was the highest bidder for the Gwadar port after DP World backed out of the bidding process. Originally, the chairman of Dubai Ports World
Dubai Ports World
DP World is a major operator of marine ports with 49 terminals in operation and a further 9 under development across 31 countries. In 2010, DP World handled nearly 50 million TEU across its portfolio from the Americas to Asia...
, Sultan Ahmed bin Sulayem
Sultan Ahmed bin Sulayem
Sultan Ahmed bin Sulayem is the chairman of Dubai World, a diversified holding company based in the United Arab Emirates and owned by the government of Dubai.-Family background:...
, who met Pakistani president General
President of Pakistan
The President of Pakistan is the head of state, as well as figurehead, of the Islamic Republic of Pakistan. Recently passed an XVIII Amendment , Pakistan has a parliamentary democratic system of government. According to the Constitution, the President is chosen by the Electoral College to serve a...
Pervez Musharraf
Pervez Musharraf
Pervez Musharraf , is a retired four-star general who served as the 13th Chief of Army Staff and tenth President of Pakistan as well as tenth Chairman of the Joint Chiefs of Staff Committee. Musharraf headed and led an administrative military government from October 1999 till August 2007. He ruled...
on May 5, 2006, expressed a strong hope for management of facilities at the strategic Gwadar deep sea port and development of infrastructure in the southern port city and elsewhere in Pakistan. But a decision was taken not to bid, after India’s National Security Council voiced concerns about DP World’s ventures in India
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
, alongside its plans in Pakistan, and Sultan Ahmed bin Sulayem
Sultan Ahmed bin Sulayem
Sultan Ahmed bin Sulayem is the chairman of Dubai World, a diversified holding company based in the United Arab Emirates and owned by the government of Dubai.-Family background:...
assured the Indians their pull-out was well considered and India need not have any security concerns. The port will now be in competition with that of Dubai
Dubai
Dubai is a city and emirate in the United Arab Emirates . The emirate is located south of the Persian Gulf on the Arabian Peninsula and has the largest population with the second-largest land territory by area of all the emirates, after Abu Dhabi...
in the United Arab Emirates
United Arab Emirates
The United Arab Emirates, abbreviated as the UAE, or shortened to "the Emirates", is a state situated in the southeast of the Arabian Peninsula in Western Asia on the Persian Gulf, bordering Oman, and Saudi Arabia, and sharing sea borders with Iraq, Kuwait, Bahrain, Qatar, and Iran.The UAE is a...
.
Following the completion of Phase I of Gwadar, Govt. of Pakistan on 1 Feb 2007 signed a 40-year agreement with PSA International for the development and operation of the tax-free port and duty-free trade zone . In a highly competitive environment, in order to “enable Gwadar to compete with its regional peers, the port fees was kept low by allowing a wide range of tax concessions to the PSA to cut operational and business costs. These include complete exemption from corporate tax for 20 years, duty-free imports of materials and equipment for construction and operations of the port and a free economic zone; and zero rate of duty for shipping and bunker oil for 40 years”. In addition to these incentives, the provincial government of Baluchistan was also asked to exempt the PSA from the levy of provincial and district taxes.
According to the agreement, the Gwadar Port Authority, the Government of Pakistan would get a fixed share i.e 9% of the revenue from cargo and maritime services, and 15% of the revenue earned from the free-trade zone. PSA is expected to invest US$550 million in the next five to ten years on creating the operational facilities. Salients of the agreement are as under:
♦ Agreement signed between Gwadar Port Authority (GPA) and Concession Holding Company (CHC) a subsidiary of Port of Singapore Authority (PSA) on 05-02-2007.
♦ 40 year lease agreement for operating and managing Gwadar Port
♦ PSA will invest US $550 million during the next 5 years for Port Development. The areas where the concession agreement is to be implemented are Terminal and Cargo operations, marine services and Free Zone development.
♦ GPA will receive the following fixed share of revenues: 9% from Cargo operations and Marine services. 15% from Gwadar Free Zone business.
♦ No duty would be imposed on the machinery and equipment to be imported for development work in this area and for port operations, for 40 years.
♦ CHC (the port operator) will have complete exemption from corporate tax for 20 years.
♦ Duty exemption for shipping lines and bunker oil for Gwadar port for 40 years.
♦ CHC will have complete exemption from all local and provincial taxes for 20 years.
♦ CHC will take over the marketing and operations of the current terminal area which provides 602 metres of berthing and will invest and expand berthing space as demand grows during the concession period up to a total maximum of 14 berths in an area of 4.2 Km.
♦ Marine services to be operated by CHC will consist of pilotage, tugging, mooring, vessel traffic control, anchorage management and bunkering.
♦ GPA will be responsible for dredging of approach channel and harbour to maintain the required depth. All conservancy, security and firefighting services will be provided by GPA.
See also
- Karachi Port
- Port QasimPort QasimThe Port Muhammad Bin Qasim , also known as Port Qasim, is a seaport in Karachi, Pakistan, on the coastline of the Arabian Sea. It is Pakistan's second busiest port, handling about 35% of the nation's cargo...
- Keti BandarKeti BandarKeti Bandar is a former port on the Arabian Sea, in the Thatta District, Sindh, Pakistan. The port was built on the remains of the older seaport of Debal where Muhammad bin Qasim and his army arrived from Iraq.- See also :* Keti...
- List of seaports
- List of deep water ports