RESEARCH PAPER

China interest in Gwadar

port
By : Inayat ur rehman saqib
Student of BS politics & IR
10/12/2013

Outline
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Introduction
Strategic location of Gwadar port
Economic significance
Chinas Interest in Gwadar Port
Baloch reservations on Gwadar
Conclusion
Reference

Introduction
Gwadar Port is the third deep sea port in Pakistan after Karachi and Port Qasim.
Gwadar spread area 1.52 million hectares or 15,216 square km. its one of
attractive coastal area of the region. Gwadar is a district along the sea in south of
the Makran. The coastline of Gwadar district is about 600 km long. Gwadar was
notified as a district in July, 1977 with its Headquartering at Gwadar town.
Previously its used to be a part of Makran district. Gwadar is located on the
southwestern coast of Pakistan, on the Arabian Sea. It is strategically located
between three increasingly important regions: the oil-rich Middle East, heavily
populated South Asia and the economically emerging and resource-laden region of
Central Asia. Coastal belt with beaches. ECO highway, Coastal Highway and other
mega projects in road sectors will connect Gwadar free port with Central Asian
States Gulf States, China and rest of the country. Gwadar port is the living symbol
of Pak-China relationship. Geographical location of Gwadar has a significant
importance in the international trade routes.

Strategic location of Gwadar port

The strategic location of the newly constructed Gwadar port might be taken advantage of to
facilitate regional and international trade. The city of Gwadar (located in the Baluchistan
province) is strategically located east of the Islamic republic of Iran and south of Afghanistan
and has a seaport that is located at the entrance of the Persian Gulf. For Pakistan the economic
return from Gwadar port stems from its location near the Strait of Hormuz, a major conduit for
global oil supplies in the region Gwadar is of strategic importance to east and central Asia
(particularly Afghanistan and china) providing landlocked countries with access to the sea.
However Gwadar strategic location for facilitating regional trade and alleviating poverty has yet
to be fully capitalized to its greatest potential the development and usage of the port has stalled
because of a variety of issues ranging from a lack of infrastructure investment by the government
high costs of transport and absence of any significant industry in Baluchistan. Gwadar serves as
an important node for any Islamic republic of Iran-Pakistan-India gas pipeline that could be
developed. This could cross from the Iran to Pakistans Baluchistan province. Government need
to have a long term vision of the development of this relatively news port sector. This occupies a
critical location in trade market. 1

Economic significance
Gwadar become a hub of economic activities in the region. The governments decision to declare
Gwadar an industrial zone will attract investors, create job opportunities, and open up new vistas
of economic and tourist trade development in the coastal region.
Gwadar port is mainly based on the cargo from Western China, Afghanistan and Central Asian
Republics.
Prospective Port for Regional Countries
Trade Prospect with CARs. The total population of this region is around 65 million,
which is distributed amongst 6 states, out of which Uzbekistan, Tajikistan and
Turkmenistan, have close geographical proximity with us and as such will be the
potential users of Gwadar port. The present total foreign trade of the area is estimated to
be 20 billion US$ with 12 billion US $ of exports. The total international trade in terms of
weight and volume is approximately 80 million freight tons. The main items and
commodities of trade brought in from various ports are all kinds of consumer goods,
electronic items and garments. Exports, which are our main focus of attention, include
cotton, metal ores, machinery, gas and oil.
The road distance from Kushka in Turkmenistan to Gwadar is only 1200 kms whereas;
the nearest Black Sea port of Odessa in Ukraine is approximately three thousand and four
hundred kms away from Central Asian States. Thus Gwadar automatically becomes the
most viable option available with the CARs. A 500-km long highway connecting Gwadar
with CARS via Panjgur, Chaghi and Rabat, up to Herat is therefore being rightly planned.
1

Greening growth in Pakistan through transport sector reforms. http://dx.doi.org/10.1596/978-0-8213-9929-3

Trade Prospect with China

China is an economic giant of the region. The trade prospects with China are envisaged
to evolve along with the construction of the port. Being a coastal region, the eastern part
of China is far more developed than her Western region. But ever since China has
triggered the western development strategy in the late 1990s, the western region has
drawn the attention due to its cheaper labor force, rich natural resources and potential
huge market. Incidentally the southern tip of the huge Xinjiang autonomous region is four
thousand five hundred km from Chinese ports located on the eastern coast but only about
2500 km from ports of Pakistan. It is expected that Chinas use of Gwadar port for
exports originating from western region will provide her preferred option over the ports
located along her eastern coast, for which a distance of 10,000 km has to be covered.
Thus it may be logically visualized that Gwadar port will be an integral part of the
Chinas Foreign Trade route in future.
The existing Karakoram highway already connects western China with Pakistan. With
further expansion and upgrading of this traffic artery and proposed linkages with Gwadar
via planned Ratodero Khuzdar road, Western China shall have easier access to Gwadar.

Trade Prospects with Afghanistan

Afghanistan after having been placed on a path of development is in desperate need of finding
new avenues for boosting its economy. The country is full of natural resources amongst them are
huge deposits of copper, high-grade iron ore, chromite, sulpher, zinc, precious stones, oil and
gas. Besides this, the country possesses reserves of oil, gas, coal and precious stones. Once the
conditions in Afghanistan become conducive to full exploitation of this productive potential, it
will trigger a formidable momentum of trade activity, which would need operationally feasible
and economically viable sea trade routes. Another important fact is US approval of over 1.4
billion US $ for the economic recovery of Trans Afghan gas pipeline. This project will carry 30
billion cubic meters of gas per annum from Turkmenistans gas fields to Gwadar, and will be the
first and foremost step towards the perceived economic benefits. With almost 30 billion US $
already invested by US oil companies in Central Asian region, the suggested Afghan route would
cost only one-half the amount of the other alternative, which would run through Georgia to
Turkeys Mediterranean coast. This 1500 Km pipeline project can yield significant revenues as
Pakistan has plans to build a liquid-gas plant at the Gwadar Port for export purposes. Therefore,
the importance of Gwadar Port in providing sea access to Afghanistan cannot be over stressed.
Incentives for the Development of the Country
The development of Gwadar port will also play an active role in changing the economic destiny
of our country. This province has abundant mineral resources, which could not be exploited
earlier mainly due to poor communication infrastructure. The development of roads due to
increased economic activity in the province will bring about the much-needed development.

Chinas Interest in Gwadar Port

Chinas securing of a strategic port in Pakistan is the most recent expansion to its head to secure
vigor and oceanic tracks and
gives it a Potential maritime base
in the Arabian Sea. The
Pakistanis pitched the
arrangement as a Induced and
exchange passageway that might
associate China to the Arabian
Sea and Strait of Hormuz, an
entryway for a third of the
worlds traded oil, overland
through an extended Karakoram
Highway.

In spite of the fact that it might consume to a year for the arrangement to be
marked, Gwadar might be the most westerly in a string of Chinese-supported
ports circling its huge provincial opponent, India, which was speedy to express
concern over the approaching exchange.
Gwadar is the most generally likely port to be produced by China for utilization by the Pakistan
Navy, and conceivably their own. Pakistan is most likely the main government where the level
of trust between the two militaries is sufficiently high to make that a totally dependable
prospect,
For Pakistan, the budgetary comes back from Gwadar port stem from its area close to the Strait
of Hormuz, through which 40% of the planets oil passes. Gwadar could develop as a key
dispatching focus, carrying Pakistan greatly required pay, and when joined with the
encompassing territories could turn into an exchange center, once street and rail joins unite it to
whatever is left of Pakistan, Afghanistan and Central Asia. A Street from Gwadar to Saindak,
said to be the briefest track between Central Asia and the ocean, is under development. Gwadar
might give landlocked Afghanistan and the Central Asian republics with access to the ocean.
Products and oil and gas saves from these nations could be dispatched to worldwide showcases
through Gwadar port. Pakistans business group appears to be energetic about Gwadar port being
designated an organized commerce zone and a fare handling zone.
To close, Gwadar gloats geographic position in spades, arranged as it is to Indias west and close
to the Strait of Hormuz. Yet it is not solid or overall supplied. It sits on a slender spit of area
extending out from the Pakistani coastline, making it a perfect focus for air or rocket strikes.
Supplies must be transported in through Baluchistan, a locale tormented by a bothering uprising.
Does Beijing enthrall maritime aspirations in the Indian Ocean? Still it is an inquiry mark.
Anyhow until further notice, China is just growing choices for whats to come. India might as
well keep watch while keeping its reasons for alarm under control. The sky might fall
however not today. At last, the degree to which Pakistan and China have the ability to harvest

monetary and vital increases from the Gwadar undertaking might hinge on upon the tests to it
from inside their outskirts. The Gwadar task is bitingly restricted by Baloch patriots who see it so
far an alternate illustration of Pakistans Punjabi-overwhelmed controlling exclusive siphoning
without end Baloch riches and assets without this backward region or its people gaining.

Baloch reservations on Gwadar

Baluchistan which is already passing through a political crisis witnessed more bloodshed and
violence that dominated political scenario of the province. The Pakistan government hands over
Gwadar Port to China Overseas Ports Holing Company Limited after taking it back from the
control of Port of Singapore Authority. Handing over of Gwadar Port to China was opposed by
Baloch nationalists as well as Baloch parliamentarians and expressed their serious reservations.
Nawabzada Jamil Bugti, son of Nawab Akbar Khan Bugti, says different quarters are giving an
impression that Gwadar Port would bring prosperity and development in Baluchistan, but it is
absolutely wrong. He argues that this step is aimed at further strengthening control over Baloch
resources with the help of China, adding that handing over Gwadar Port to China is a proof that
Pakistan is not capable of running its institutions. He says it is evident from the history of Tibet
that China is not a so much pro-development country. Taking people of Baluchistan into
confidence in signing projects with foreign countries is essential and wining their trust is
inevitable for success of the projects. Baloch nationalists fear the project will not be beneficial
for the Baloch. Instead it would open doors for non-locals, creating a demographic imbalance
against the native people.

Conclusion
Located at the entrance of the Persian Gulf and about 460 kms from Karachi, Gwadar has had
immense Geostrategic significance on many accounts. The strategic location of Gwadar port
might be taken advantage of to facilitate regional and international trade. Gwadar become a hub
of economic activities in the region. Gwadar port will be an integral part of the Chinas Foreign
Trade route in future. Its amazing that tomorrows small fishing village Gwadar is fast
emerging as a Deep Sea Port today. This is important to note that the Government of Pakistan,
keeping in view its utmost significance in the area, has declared Gwadar as a Duty Free Port
and a Free Economic Zone.

Reference
[1] Imtiaz Bokhari, The US, Oil and Geopolitics of the Persian Gulf, IPRI Journal, Vol. IV,
No. 2 (2004), p. 51.
[2] Lin Shanglin, Pakistan-China Relations, Pakistan Horizon, Vol. 54, No. 3 (July 2008), p.
13.
[3] Tariq Mahmud, Afghanistan in Chinese Strategy Toward South and Central Asia, China
Brief, Vol. 8, No. 10 (2008), p. 27.

[4] Safdar Khan, Karakoram Highways Gwadar Link Likely, Dawn (5 July 2006), p. 5.
[5] Iftikhar Ahmad, Regional and International Interest in Oil and Gas Pipelines to Gwadar,
the Dialogue, Vol. II, No. 2 (2007), p. 127.