Posted on December 8, 2018 at 03:00 PM
Gwadar port has a strategic location with warm water and a deep sea port that has a positive impact not only on Pakistan but the entire region in terms of CPEC and business trade. Gwadar port directly connects with Asia, Europe and Africa for trade. Gwadar port is ready to compete with Dubai port and its potential. The strategic location of Dubai and Gwadar ports shows the importance of these trade routes and both ports are located at the cross junction of international shipping and oil trade routes. Moreover, both ports are located are considered as vital checkpoints which provide access to the Indian Ocean where about 100,000 ships pass and almost 70% of oil trade is shipped in different countries. India Ocean is also considered as a home for the world's raw material, 30 per cent liquid gas and 50% of the world's export to different countries.
According to the geo-strategic analysts, Gwadar port will directly benefit all the Gulf countries. China is increasing its military and economic relations with all Gulf states. So, these will be the biggest beneficiaries of the China-Pakistan Economic Corridor. CPEC will shorten the distance of China to Gulf countries from 12000 Km to 3000. So, due to these factors, the Gwadar port could help the Gulf states to enhance the economic and military ties with China.
The current status of Sino-UAE bilateral trade is around $54.8 billion per annum and it will double once it is connected via Gwadar port. It will increase the importance of Gwadar greatly if foreign direct investments are made by UAE companies in Gwadar Free trade Zones. UAE is a big key supporter of One-Belt One-Road strategy and it has become a founding partner of Asian Investment and Infrastructure Bank (AIIB).
The government of Pakistan has formed a Special security cell called " Gwadar Safe City Project" comprising 1200 armed forces personnel which are highly trained to protect Chinese workers in Gwadar and a Marine Battalion has been raised for the security of Gwadar. Pakistan Army has established a new division in Gwadar in the last few months to enhance the security of Gwadar and its route with an estimated number of 13000 troops. The government of Pakistan has deployed police checkpoints, guarded convoys. The army has announced the creation of 10,000 special men for developing projects of Gwadar.
Gwadar is termed as the game changer project which will change the fate of Pakistan and modernize it. Gwadar will improve the economy, trade and enhance regional connectivity, infrastructure development and developing Business to Business and Business to customer connectivity. In recent years both Pakistan and China made efforts to revive the Silk route which is one of the oldest routes connecting Gwadar with Kashgar and Central Asian states. The concept of One Belt-One Road (OBOR) initiative got international strategic importance which covers different regions and countries with a total population of 4.4 billion and total economic value of US $21 trillion. According to the China Pakistan Economic Corridor assessment, the plan is involved in laying the foundation of transportation, mining, trade diversifications, and creating political flexibility.
The construction and development tenure of CPEC is 2014-2030 which will link with Silk route. CPEC is categorized under three phases. The short-term projects are estimated to be completed by 2017, mid-term projects are estimated to complete by 2025 and long-term projects are estimated to be completed by 2030. The construction cost of development projects is 64billion which consists of highways, railway networks and pipelines to transport oil & gas.