Tag Archives: Gwadar port

China-Pakistan Economic Corridor: A boon for the economy, a bane for locals

BY ZOFEEN T. EBRAHIM

Pakistan’s Gilgit-Baltistan region is frequently in the news these days, but not necessarily for its mouth-watering cherries and dried apricots. The much touted US $46 billion China-Pakistan Economic Corridor (CPEC) will pass through this beautiful province in the north to reach Chinese-operated Gwadar port in the country’s south. While there is hope it will transform the economy and help bridge Pakistan’s power shortfall, CPEC has also triggered concerns that the local people might be left out of the gains.

Read more » DAWN
See more » http://www.dawn.com/news/1236159/

Chinese firm takes control of Gwadar Port free-trade zone in Pakistan

Gulf gateway key to plans to ship oil overland to inland provinces

By Summer Zhen

A Chinese firm officially took control of Pakistan’s Gwadar Port free-trade zone on Wednesday, further cementing its role in the Gwader area, a gateway to oil-exporting Gulf countries, and analysts see the deal as a chance for China to change the oil import game.

Under the agreement, state-backed Chinese Overseas Ports will manage the free-trade zone on a 43-year lease. The formal handover signals the Chinese side’s control of all the port’s business affairs.

Gwadar port is a deep sea port that sits next to the Strait of Hormuz, the key oil route in and out of the Persian Gulf and it lies only 120km from the Iranian border.

As part of the China-Pakistan Economic Corridor scheme, China plans to make Gwadar a transportation hub by building a 3,000km railway linking Xinjiang, in western China, with Gwadar.

Read more » South China Morning Post
See more » http://www.scmp.com/business/companies/article/1877882/chinese-firm-takes-control-gwadar-port-free-trade-zone-pakistan

India to sign deal with Iran on Chabahar port project soon

India is moving closer to finalizing a crucial plan to invest in Iran’s southern Chabahar port – a project that would open a new economic corridor rival to what China plans to do in Pakistan’s Gwadar port. 

India’s Union Shipping Minister Nitin Gadkari is expected in Tehran within the next few days to formalize a deal for the project, the New Delhi-based Business Standard newspaper reported.

India is also likely to engage in discussions with the US to secure a waiver of sanctions on activities at Chabahar, the report added.

“Talks about the proposed speed and manner in which the US government plans to free up the sanctions might also be on the cards, so that India does not run the risk of attracting punitive sanctions,” it said.

Read more » Press Tv
See more » http://www.presstv.ir/Detail/2015/04/25/408007/Iran-India-Chabahar-Corridor-Trade-economy-sanctions-washington-zarif-kerry

A Strategic Seaport – Is Pakistan Key to China’s Energy Supremacy?

By Syed Fazl-e-Haider

A seaport in southwest Pakistan may hold the key to China’s energy supremacy. At least, that’s what China hopes. The Gwadar port, which China has built and will operate in the province of Balochistan, is situated near the Strait of Hormuz, a major oil-shipping lane that can serve as an energy corridor from western China through Pakistan to the Persian Gulf.

Beijing’s pivot to Pakistan is a substantial one. The story goes back to 2008, when Pakistani President Pervez Musharraf proposed a railroad and an oil pipeline to link Gwadar to the Kashi port in Xinjiang—allowing China to take advantage of the shortest possible route to the Middle East. In exchange, Pakistan would get an influx of Chinese investment. Indeed, in 2014, the Chinese government committed to spending $45.6 billion over the next six years to build the China–Pakistan Economic Corridor, which will include the construction of highways, railways, and natural gas and oil pipelines connecting China to the Middle East. China’s stake in Gwadar will also allow it to expand its influence in the Indian Ocean, a vital route for oil transportation between the Atlantic and the Pacific.

Another advantage to China is that it will be able to bypass the Strait of Malacca. As of now, 60 percent of China’s imported oil comes from the Middle East, and 80 percent of that is transported to China through this strait, the dangerous, piracy-rife maritime route through the South China, East China, and Yellow Seas.

The United States fears that China will come out of its dealings with Pakistan with more power. But it need not be worried: China’s involvement in Balochistan, a restive area prone to insurgencies, will not end well. Many believe Quetta, Balochistan’s capital, is hiding wanted leaders from the Afghan Taliban. Meanwhile, small towns in Balochistan are the breeding grounds for a decades-old separatist movement targeting federal agencies. Increasingly, China has been caught up in the violence. In 2004, three Chinese engineers were killed and nine wounded when separatists attacked their van in Gwadar. In 2009, China shelved its $12 billion plans to build an oil refinery and an oil city in Gwadar due to security concerns.

China’s involvement in the region’s politics can only be bad news. In 2012, U.S. Congressman Dana Rohrabacher introduced a resolution that asked the United States to support Baloch separatists as freedom fighters. The resolution was tabled, but if the United States ever does decide to involve itself in the conflict, China’s strategic interests will be at risk.

Read more » Foreign Affairs
See more » http://www.foreignaffairs.com/articles/143227/syed-fazl-e-haider/a-strategic-seaport

With Wary Eye on the U.S., China Courts India

On the back of this week’s visit, both Prime Minister Singh and Premier Li are due to visit each others respective rivals. Next week, Singh is headed to Japan, which is engaged in an increasingly edgy dispute with China over a group of islets in the seas between them. Li goes to Pakistan, where he is to sign agreements to develop the Chinese-managed Gwadar port. India has often been nervous about Chinese agreements with its neighbors that are not strictly military but could be leveraged in a conflict.

By REUTERS

NEW DELHI — Chinese Premier Li Keqiang, smiling and effusive, was out to smooth ruffled feathers in India this week, promising to ease tensions and increase trade between Asia’s fastest growing economies in his first trip overseas since taking office.

“China will make your dream come true,” Li told a banquet hall filled with Chinese and Indian business executives in the financial capital of Mumbai as he wound up his visit on Tuesday.

China’s overtures, which come amid worries in Beijing that it is being encircled by the United States and its allies, however met with a cool response.

India has been shaken by a recent border spat with China and is cautious about Beijing’s friendship with rival Pakistan, where Li flies on Wednesday. New Delhi is also concerned about a ballooning trade deficit with China and a flood of cheap Chinese-made goods undercutting local manufacturers.

Continue reading With Wary Eye on the U.S., China Courts India

China to provide support in constructing a regional railway hub

By Imaduddin

PESHAWAR: China is to provide all kind of financial and technical support in the construction of a regional railway hub for Pakistan, said Director Pakistan Study Centre Sichuan University Chengdu China Dr Chen Jidong.

Speaking as a key note speaker at the one day seminar on prospects of Pak China Relations at University of Peshawar (UoP), Dr Chen Jidong said the active promotion of construction of the railway project will connect Pakistan with Xinjiang region in China and will enhance the capacity of transportation between two countries not only by land but also add to a new outbound transportation line for western China.

He said that the project is the greatest advantage of Pakistan, and will build trade and transport corridors by connecting South Asia, West Asia, Central Asia and Western China owing to the country’s geographical advantages.

Dr Chen said that Pakistan has a railway network not younger than the year 1861, aging by the day and needs arduous upgrading.

Some external powers are creating serious law and order situation in Balochistan, with the evil design to halt the expected development of the area through Gwadar port operations, said the Chinese strategic analyst Prof. Zhon Rong.

He added the taking over of operations of Gwadar Port by a Chinese company in the recent past to go with the railway project, can transform Pakistan into economic giant of the 21st Century. Let me tell the Pakistani people that Gwadar Port is first for the development of Pakistan and then any other country, he added.

Continue reading China to provide support in constructing a regional railway hub