Chinese company invests $40million at Gwadar Port
- China Overseas Ports Holding Company Limited (COPHCL) invested $40 million at Gwadar port.
- Over 30 companies are operating in Gwadar Port Free Zone-I
- Pakistan Economic survey 2018-19 shows that Gwadar port is now fully operational and is receiving commercial vessels on a regular basis.
The development of Gwadar Port is a basic element of the China-Pakistan Economic Corridor (CPEC).
In 2007, the government of Pakistan had signed a concession agreement with Singapore Port Authority International (SPAI) but there was no noticeable progress till 2013.
In May 2013, concessional rights of Gwadar Port were transferred to China Overseas Ports Holding Company Limited (COPHCL).
After the concessional rights were given to COPHCL, it started working to upgrade the port’s facilities.
For the improvement of port’s facilities, the surrounding environment, and port businesses, COPHCL has now invested over $40 million at Gwadar Port.
Over 30 Companies operating in Gwadar Port Free Zone-I:
The construction of Free Zone Phase-I has been completed with all infrastructures, including power, water, road, telecommunication, waste treatment, and drainage systems now in operation.
More than 30 enterprises; banks, insurance, financial leasing, hotels, warehouses, fishery products processing, edible oil processing, pipe, furniture manufacturing, electric vehicle assembly, trade, and logistics, have already been registered at the Free Zone.
Check this too: Remittances by overseas Pakistanis increase in May 2019
Massive operations in the zone have been set up by China Communication Construction Company, Business Center, Linyi Trade City, Exhibition Center, and Yulin Company, a Steel Tube Industry.
The Gwadar Port:
Gwadar Port is a strategic warm-water deep-sea port developed jointly by the Government of Pakistan and China at a cost of USD $248 million.
Gwadar Port is located on the southwestern Arabian Sea Coastline in Balochistan. After Karakoram Highway, it is the second greatest monument of Pak-China friendship, linking Pakistan and China.
Gwadar Port is located at the mouth of the Persian Gulf, outside the Strait of Hormuz, near the key shipping routes in and out of the Persian Gulf. It is about 630 km away from Karachi and 120 km from the Iranian border.
Gwadar Port is the third commercial port of Pakistan after Karachi and Qasim. It will be constructed in phases having three 200 meter long berths and one Ro-Ro (roll on-roll off) facility.
The development of Gwadar Port will enable Pakistan to earn through freight and cargo handling charges. The free zone will be helpful for manufacturing and port-related business.
Gwadar Port will become an important source of regional connectivity as it will provide Pakistan an opportunity to strengthen its regional relationships.
Russia expressed its interest in using Gwadar port for trade because the port can provide Moscow access to warm waters. Turkmenistan and Iran have also shown their interest in joining CPEC.