Gwadar port

Gwadar Port is a deep-sea, warm-water port situated at Gwadar in Balochistan province of Pakistan at the apex of the Arabian Sea and at the entrance of the Persian Gulf, about 460 km west of Karachi and approximately 75 km east of Pakistan's border with Iran.

The Port is located on the eastern bay of a natural hammer-head protrusion of land jutting out into the Arabian Sea from Pakistan's Makran coastline.

The Port is being constructed in two phases with heavy investment from China. Technical and financial feasibility studies were commenced by Pakistan in 1993 but construction did not start until 2002 when the Port of Singapore Authority was hired for its management.

Gwadar Port became operational in 2008, with the first ship to dock bringing 52000 tonnes of wheat from Canada. Minister of Ports and Shipping Sardar Nabil Ahmed Khan Gabol officially inaugurated the port on 21 December 2008.[1]
The Gwadar port background

Gwadar district, with its 600 kilometres long coast line and un-irrigated tracts of Kulanch and Dasht valleys, has always been an important chapter of Makran’s history. The known history of Makran goes back to the time of prophet Dawood when people entombed themselves to avoid famine. The area is said to be possessed by Iranian King Kaus followed by Afrasiab of Turan and then by Kai Khusrau, again an Iranian. Then there is a long list of rulers, including Lehrasp, Gushtasp, Bahman, Huma and Darab, to the year 325 BC when Alexander the Great incidentally found the sea in this area on his way from India to Macedonia. Greek historian Arrian has mentioned the coast line as the country of Ichthyophagoi. At that time Nearchos, the admiral of Alexander, sailed along the coast and mentioned places named Kalmat, Gwadar, Pishukan and Chahbar. Afterwards, the area was ruled by Seleukos Nikator, one of Alexander’s generals, who lost it to Chandragupta in 303 BC. Then the tract of history is lost in darkness for centuries. An account of this area is found in the beginning of the sixteenth century when the Portuguese found their way to India and captured several places along the Makran coast. In 1581 they burnt “the rich and beautiful city of Pasni” and Gwadar. Although many invaders conquered the land, mostly the local rulers, including Hots, Rinds, Maliks, Buledais and Gichkis, exercised authority in the area as the conquerors had no intentions to stay there.

Two regimes of local rulers, of Buledais and Gichkis, are worth mentioning here. The Buledais gained power with the rise of the Zikri sect. These rulers are said to be connected with the rulers of Maskat and were called Buledais with reference to the valley of Buleda where they resided. The Buledais ruled the area for more than a century up to the year 1740. In the last years of their regime they embraced Islam. The Zikri folk joined hands with the Gichkis who also were Zikris by faith. The family feuds and internal dissension between Gichkis resulted in nine successful expeditions (either partially or fully) by Mir Nasir Khan I. It is said, that the main motive behind all these expeditions, made by Mir Nasir Khan I, was to eliminate the Zikris as he belonged to the (anti-Zikri) Muslim faith. These expeditions resulted in a division of revenues between the Khan and Gichkis.

In the last quarter of the eighteenth century, Gwadar and the surrounding country fell into the hands of Maskat. Saiad Said succeeded to the masnad of Muscat in 1783 and had a dispute with his brother Saiad Sultan. The latter appears to have fled to Makran and entered into communication with Nasir Khan who granted him the Kalat share of the revenues of Gwadar. Saiad Sultan lived at Gwadar for some time and eventually succeeded in usurping the Sultanate of Maskat in 1797. He died in 1804 and during his sons reign, the Buledai chief of Sarbaz, Mir Dosten, is said to have acquired temporary possession of Gwadar, but a force sent from Maskat regained it. Although it is generally understood that the right of sovereignty in Gwadar was transferred by the Khans of Kalat to Maskat in perpetuity, the Khans and natives of Gwadar have always denounced this perception. The un-irrigated tracts of Kulanch and Dasht valleys have always been connected with Kech.

The first Afghan war (1838-39) directed attention of the British to the area. Major Goldsmith visited the area in 1861 and an Assistant Political Agent was appointed in Gwadar in 1863. Both Pasni and Gwadar have been ports of call for the steamers of the British India Steam Navigation Company. The first ever telegraphic link to this area was made in 1863 when Gwadar was linked to Karachi. Telegraph offices were opened at Gwadar and Pasni. Later post offices were opened at Gwadar in 1894 and at Pasni in 1903. Ormara was linked telegraphically in 1904.[1]

After the division of the Indian subcontinent into two sovereign states, areas except Gwadar and its surroundings, joined the Balochistan States Union, as part of Makran state. In early 1949 along with Kalat, Lasbela and Kharan. In October 1955, Makran was given the status of a district of former West Pakistan province after its accession to Pakistan. In 1958, Gwadar and its surrounding area was reverted back from Maskat to Pakistan and was made a tehsil of Makran district. On 1st July 1970, when one unit was dissolved and Balochistan gained the status of a province, Makran became one of its 8 districts. On 1st July 1977, Makran was declared a division and was divided into three districts, named Panjgur, Turbat (renamed Kech) and Gwadar. Gwadar was notified as a district on July 1, 1977 with its headquarters at Gwadar town.
Gwader Port Project" and its future as Bigger than Dubai
The April 2002 inauguration of Gwadar seaport with Chinese collaboration in southern Balochistan on the Arabian Sea coast is likely to open up new vistas of cooperation and development in the region. The port is strategically located on the opposite end of the Gulf of Oman and the Straits of Hormuz on the mouth of the Persian Gulf.

China is involved in the construction and development of the above seaport on the Arabian coastline. Once completed and functional, it may have positive spin off for the Chinese western Muslim Autonomous Republic of Xinjiang, formerly called Eastern Turkestan. The republic of Xinjiang is contiguous to Central Asian countries, viz, Kazakhstan and Kyrgyzstan.

With nearly 35 percent of share in international trade, China is a leading country in textile production, contributing to one-fifth of the world's garment industry. The garment export in 2001 increased to $36.1 billion -- nearly 50 times from 1978. Currently, China's eastern seaboard region is the hub of economic activity. Xinjiang region suffers from economic under-development and some separatist trends from its dominant Uighur Muslims. Hence, China is thinking of seriously catapulting the region into fast track development.

Building of the Karakorum Highway in the 1970s linking Xinjiang with the northern regions of Pakistan and now the proposed development of Gwadar seaport in southern Balochistan along the Arabian Sea could be another hallmark of Sino-Pakistan friendship. Needless to say that the Chinese have an admirable record of completing major projects in time with their friends.

In the next decade or so, China intends to earmark $90 billion for developing its mid-west and western regions. Last year, $200 billion was loaned to western regions for infrastructure development, proximate to Pakistan's northern region. Incidentally, the southern tip of Xinjiang is as far away as 4500 km to the eastern coast of China whereas it is only 2500 km from the port of Pakistan. This makes it feasible and cost-effective to carry out trade (exports and imports) through ports that are neighbouring to the Gulf, Africa, Central Asia and Europe.

The Gwadar port project was started in 1992 but was held up in abeyance due to political instability in Pakistan, following change of the Nawaz Sharif government. Initially, Holland was approached for financing the project but to no avail. Later, Oman was approached, which has a large Balochi population. Although Sultan Qaboos expressed interest in the development of the region, the Opposition parties in Pakistan assailed the government for 'handing' the port over to the US government after the end of Iran-Iraq war and the increased US interests in the Gulf.

It is conjectured that once the Gwadar port complex is completed, nearly twenty countries of the Middle East, Central Asia and South Asia could benefit from the mega-project. The complex will provide facilities of warehousing, trans-shipment, transit and coastal trade, commercial and industrial openings for international export-import trade. This is especially from and to Afghanistan, the CARs, Persian Gulf states, UAE, Oman, Saudi Arabia, Qatar, Iraq, Iran and other countries.

The Chinese government is providing a soft loan of $198 million while the Pakistani government has contributed $50 million for the first phase of this mega- project that would be completed in three phases in three years. Of late, Balochistan, a neglected and backward province, has started getting increased attention from the Pakistani government. It has, for example, five modern airports, with several flights a week, linking Mekran with the rest of the country and the Gulf region. A modern mini-port is under operation at Pasni.

The Chinese are also helping in laying the White Oil Pipeline project from Port Qasim near Karachi to Muhmood Kot near Multan. This pipeline is to be constructed with the collaboration of Pak-Arab Pipeline Company (PAPCO) and China Petroleum and Engineering Construction Company (CPECC) with transport of 12 million tonnes of white oil products across Pakistan that would fulfil 75 per cent of Pakistani oil and transportation needs.

Allied to Gwadar, the coastal region of Balochistan is also expected to get an economic boost with the construction of a 700-km coastal highway, linking Karachi on the east with Jiwani to the west, close to the Iranian border. Pakistani's National Highway Authority (NHA) and the Frontier Works Organisation (FWO) are charged with the responsibility to build this road that will ultimately link Gwadar with the rest of the world. This will start simultaneously and will be completed by the time the port is built in three years time.

Establishment of railway link with Gwadar to Taftan in Iran via Saindak is being planned. Saindak, the first metallurgical project, lying dormant since 1995 for production of copper and gold, is being revived with the Chinese help at the cost of $30 million. A parallel road from Gwadar to Saindak, running parallel to the Iran-Pakistan border will make it the shortest route to reach Central Asia from the warm waters of Arabian Sea. Another 515-km long highway connecting Gwadar via Panjgpur, Khaan, Chaghi and Rabat up to Herat in eastern Afghanistan is on the drawing boards. This would link up Pakistan directly by road with the CARs.

The Saindak project aims at production of gold and blister copper. In the event a refinery is not set up in the region, the blister copper will have to be transported to China and then the refined product brought back for export, which will entail high expenditure. Also, alternatively, it would have to secure the services of a refinery in Surchasma copper plant in neighbouring Iran, which is also expensive.

After the completion of the seaport, successful marketing of the port management to potential customers, building of export processing zone, trans-shipment and warehousing facilities, fixing of port tariffs for shipping companies in order to be competitive, there is a need for a professional and well qualified human resource port staff. Also, construction of Mirani Dam for power and irrigation is being started soon.

All these positive developments if and when brought to fruition may ultimately help the CARs to actively participate as ECO members and help open channels through Pakistan by minimising the Russian routes. For Afghanistan, a landlocked country and desperately needing export outlet, the construction of Gwadar port complex will help in boosting economic rehabilitation and activity. Any movement of goods to and fro from Balochistan will benefit Afghan transit trade as well as the former's export of minerals and dry fruit. Besides, the port facilities could provide Afghanistan and the CARs warehousing facilities along with transit and possibilities of import of goods.

In order to become an entrepot, Gwadar port could also help in promoting tourism, spawning of ancillary industries such as fishing, shipbuilding and marine industry. It could set up export-free and industrial zones. But for this to eventuate, the political situation in Afghanistan has to normalise soon and the war-wrecked country to return to a modicum of peace and stability. In addition, the launching of such ambitious plans for the development of Gwadar seaport could serve as a catalyst for fast track development and transformation of Balochistan from a primitive, tribal society into 21st century. Thus the plans for the development of Gwadar port through the Chinese support and help is an auspicious start, albeit it should have been done by governments right after Pakisan.