Gwadar Port

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Gwadar Port
Gwadar Port
Aerial view of Gwadar Port
Facility information
Location
Pakistan
Constructed Phase I: 2002-2006
Phase II: 2007-present
Operator China Overseas Port Holding Company
Shipping information
Number of berths: Phase I: 4
Phase II: 9
Total: 13
Type of ships: Phase I: bulk carriers of 30,000 deadweight tonnage (DWT), container vessels of 25,000
DWT
Phase II: 200,000 DWT vessels
Gwadar Port is a warm-water, deep-sea port situated on the Arabian Sea at Gwadar in Balochistan province of
Pakistan.
Location
Gwadar is located on the shores of the Arabian Sea it is in Pakistan's western province of Balochistan. It is about 533
km from Karachi and 120 km from the Iranian border and 380km (240mi) km northeast of the nearest point in
Oman across the Arabian Sea. Gwadar Port is located at the mouth of the Persian Gulf, just outside the Strait of
Hormuz, near the key shipping routes in and out of the Persian Gulf. It is situated on the eastern bay of a natural
hammerhead-shaped Peninsula protruding into the Arabian Sea from the coastline.
[1]
The surrounding region is home to around two-thirds of the world's oil reserves. It is also the nearest warm-water
seaport to the landlocked, but energy rich, Central Asian Republics and landlocked Afghanistan.
Gwadar Port
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Background
Although construction of Gwadar Port did not commence until 2002, Pakistan identified Gwadar as a port site as far
back as 1954 when Gwadar was still under Omani rule.
[2]
Pakistan's interest in Gwadar started when, in 1954, it
engaged the United States Geological Survey (USGS) to conduct a survey of its coastline. The USGS deputed the
surveyor, Worth Condrick, for the survey, who identified Gwadar as a suitable site for a seaport. After four years of
negotiations, Pakistan purchased the Gwadar enclave from Oman for $3 million on 8 September 1958 and Gwadar
officially became part of Pakistan on 8 December 1958, after 200 years of Omani rule. At the time, Gwadar was a
small and underdeveloped fishing village with a population of a few thousand. A small port was constructed at
Gwadar by the Government of Pakistan between 1988 and 1992 at a cost of Rs. 1,623 million, including the foreign
exchange component of Belgian Francs 1,427 million, equivalent to Rs. 749 million, which was arranged by the
contractor. However, technical and financial feasibility studies for a major deep-sea port at Gwadar were not initiated
until 1993 under the Government of Pakistan's 8th Five Year Plan (1993-1997).
[3]
Gifford & Partners & Technecon
of Southampton, United Kingdom, in association with the Karachi-based Pakistani firm, Techno-Consult
International,
[4]
were engaged by the Government of Pakistan to carry out the feasibility study.
Construction
Gwadar Port was developed by the Government of Pakistan at a cost of USD $248 million. The construction contract
was awarded to a Chinese firm and construction began on 22 March 2002 and Phase I (see below) of the Port was
completed in December 2006 and inaugurated by the President of Pakistan General Pervez Musharraf on 20 March
2007.
[5]
Gwadar Port is being constructed in two phases:
Phase I (2002-2006): USD $248 million. Status: Completed in December 2006
Berths: 3 Multipurpose Berths (capacity: bulk carriers of 30,000 deadweight tonnage (DWT)) and container
vessels of 25,000 DWT)
Length of Berths: 602m
Approach Channel: 4.5km long dredged to 12.5m depth
Turning basin: 450m diameter
Service Berth: One 100m Service Berth
Related port infrastructure and handling equipment, pilot boats, tugs, survey vessels, etc.
Phase II (2007present): USD $932 million. Status: Under Construction
4 Container Berths
1 Bulk Cargo Terminal (capacity: 100,000 DWT ships)
1 Grain Terminal
1 Ro-Ro Terminal
2 Oil Terminals (capacity: 200,000 DWT ships each)
Approach Channel: To be dredged to 14.5m depth
Operations
Gwadar Port is owned by the government-owned Gwadar Port Authority
[6]
and operated by state-run Chinese firm
China Overseas Port Holding Company (COPHC). Earlier it was operated by PSA International (2007-2012).
Following the completion of Phase I, the Government of Pakistan on 1 February 2007 signed a 40-year agreement
with PSA International for the development and operation of the tax-free port and duty-free trade zone. PSA
International was the highest bidder for the Gwadar port after DP World backed out of the bidding process.
Gwadar Port
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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 International 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 International 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
International 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:
1. 1. Agreement signed between Gwadar Port Authority (GPA) and Concession Holding Company (CHC) a subsidiary
of Port of Singapore Authority (PSA) on 05-02-2007.
2. 2. 40 year lease agreement for operating and managing Gwadar Port.
3. 3. 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.
4. 4. GPA will receive the following fixed share of revenues: 9% from Cargo operations and Marine services. 15%
from Gwadar Free Zone business.
5. 5. 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.
6. 6. CHC (the port operator) will have complete exemption from corporate tax for 20 years.
7. 7. Duty exemption for shipping lines and bunker oil for Gwadar port for 40 years.
8. 8. CHC will have complete exemption from all local and provincial taxes for 20 years.
9. 9. 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 4.2km.
10. 10. Marine services to be operated by CHC will consist of pilotage, tugging, mooring, vessel traffic control,
anchorage management and bunkering.
11. 11. 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.
12. First Commercial Cargo Vessel "Pos Glory" berthed at Gwadar Port with 70,000 Metric Tonnes of Wheat on 15
March 2008.
[7]
Handled by Gurab Lines Shipping Gwadar.
[8]
In September 2011, the Wall Street Journal reported that Gwadar is doing little business as a commercial port, and
that Pakistan had asked China to take over the operation. A year later, China confirmed that it would be taking
control of Gwadar, which they believe has the potential to serve as an oil pipeline hub for Chinese energy needs.
Pakistan on 18 Feb 2013 formally awarded a multi-billion dollars contract for construction and operation of Gwadar
Port to China. Under the contract, the port which will remain the property of Pakistan but would be operated by the
state-run Chinese firm China Overseas Port Holding Company (COPHC).
[9]
The contract signing ceremony was held on 18 Feb, 2013 in Islamabad and was attended by President Asif Ali
Zardari Chinese Ambassador Liu Jian, some federal ministers, members of parliament and senior government
officials. The ceremony was actually held to mark the transfer of the concession agreement from the PSA (Port of
Singapore Authority) to the COPHC.
On 11-October-2013, Pakistan Minister for Ports & Shipping, Kamran Michael announced that Gawadar port will be
operational in 5 month.
[10]
Gwadar Port
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Strategic importance
Gwadar is strategically located on the western end of Baluchistan coast on the opposite end of the Gulf of Oman
which is an important route for oil tankers bound for Japan and western countries out of Gulf. Since outflow of
goods from western China and Central Asia reaching Gwadar will pass through this overland trade route, Pakistan
could earn millions of dollars a year in terms of port and cargo handling charges and also as freight charges for
import cargoes and export goods. According to Arthur D. Little (Malaysia), the main consultant firm of the Gwadar
development phases, low-cost land and labour are available, there is proximity to oil and gas resources and Gulf
countries, there are some agricultural and mineral resources, while there could be tax-free status for investments and
trade. The Gwadar Port is expected to generate billions of dollars in revenues and create at least two million jobs.
Gwadar has the potential to acquire the status of a center piece as a gate to Strait of Hormuz; it can compete with the
United Arab Emirates ports by improving the exiting links to Caspian Region, and thus providing a better trade route
to the land locked Caspian Region. Gwadar has the potential to be developed into a full-fledged regional hub and a
trans-shipment port in the future.
Numismatics
Gwadar Port was featured on the back of the Five Pakistani Rupee currency note, which is not in circulation now.
References
[1] Gwadar Port: Gwadar Port Authority (http:/ / www.gwadarport. gov. pk/ about us. html)
[2] Gwadar port: history-making milestones -DAWN - Business; April 14, 2008 (http:/ / archives. dawn. com/ 2008/ 04/ 14/ ebr7. htm)
[3] Gwadar Deep Sea Port`S Emergence As Regional Trade And Transportation Hub: Prospects And Problems (http:/ / pu. edu. pk/ images/
journal/ pols/ Currentissue-pdf/ zahid6.pdf)
[4] index (http:/ / www. techno-consult. com)
[5] Gwadar Port inaugurated: Plan for second port in Balochistan at Sonmiani -DAWN - Top Stories; March 21, 2007 (http:/ / archives. dawn.
com/ 2007/ 03/ 21/ top5.htm)
[6] http:/ / www. gwadarport. gov.pk
[7] http:/ / www. psagwadar. com. pk
[8] GurabLines: A Shipping Agency (http:/ / www. gurablines. com/ )
[9] China given contract to operate Gwadar port | Pakistan | DAWN.COM (http:/ / dawn. com/ 2013/ 02/ 19/
china-given-contract-to-operate-gwadar-port/ )
[10] http:/ / www.thenews. com. pk/ Todays-News-3-207414-Gwadar-Port-to-be-functional-in-five-months
External links
Gwadar Port Authority (http:/ / www. gwadarport. gov. pk)
Government of Pakistan, Board of Investment, Gwadar (http:/ / www. pakboi. gov. pk/ News_Event/ Gawadar.
html)
Latest Updates Gwadar Pakistan (http:/ / www. RajwaniAssociates. com)
Gwadar Deep Sea Ports Emergence as Regional Trade and Transportation Hub: Prospects and Problems (http:/ /
pu. edu. pk/ images/ journal/ pols/ Currentissue-pdf/ zahid6. pdf)
Coordinates: 25.1106N 62.3396E (http:/ / tools. wmflabs. org/ geohack/ geohack. php?pagename=Gwadar_Port&
params=25. 1106_N_62. 3396_E_region:PK_type:landmark)
Article Sources and Contributors
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Article Sources and Contributors
Gwadar Port Source: http://en.wikipedia.org/w/index.php?oldid=623843397 Contributors: Adnanrail, Alan Liefting, Aliahmed47, Alphast, Anthony Appleyard, Balochworld, Bandit313,
Baridiah, ChrisGualtieri, CommonsDelinker, D6, Dpv, Euryalus, Faizan, Fotokannan, F, Gene Nygaard, Geo Swan, Gerhardvalentin, Green Giant, Has00ali20, Haseebahmedd, Haseebasif,
Hillbillyholiday, Hmains, Inamshah, J04n, Jalal0, Jriss, Khindjal, Ksyrie, MER-C, Meco, Mephiston999, Mogism, Muhammadhani, Niceguyedc, Nomi887, Now wiki, OSU1980, OWAIS
NAEEM, Perceval, Petri Krohn, PhilKnight, Philpm930, Piano non troppo, Poloplayers, Pratyya Ghosh, Rich Farmbrough, Rovervoyageur, ScottJ, Secondarywaltz, Siddiqui, Sieger Junge,
Smsarmad, Tabletop, Talalzzafar, TastyPoutine, Tdimson, Timrollpickering, Usman uk, Vishnava, Wanishahrukh, WereSpielChequers, Xinjao, Zameenzad, 133 anonymous edits
Image Sources, Licenses and Contributors
File:Gwadar Port.jpg Source: http://en.wikipedia.org/w/index.php?title=File:Gwadar_Port.jpg License: GNU Free Documentation License Contributors: J. Patrick Fischer, Mattes,
Orijentolog, Rmih, 2 anonymous edits
File:Flag of Pakistan.svg Source: http://en.wikipedia.org/w/index.php?title=File:Flag_of_Pakistan.svg License: Public Domain Contributors: User:Zscout370
License
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