Pakistan to link China-built Gwadar port struggling for trade to Gulf countries

Pakistan has come up with a new plan to make the China-operated Gwadar port relevant.

Despite the imposition of import mandates, the Gwadar port has not lived up to its expectations, handling less than 2 per cent of the country’s cargo.

Pakistan has now decided to expand shipping lines from the port to Gulf countries and introduce ferry services to Gulf countries. The behind the move is to attract shipping and passenger between the Gulf countries and Pakistan to the Gwadar court.

“The initiative is part of the government’s strategy to enhance regional connectivity, boost maritime trade and position Gwadar as a major hub in the Arabian Sea. We aim to transform Gwadar into a strategic transhipment and logistics centre, benefiting Pakistan and the wider region,” said Maritime Af­­fairs Muhammad Junaid Anwar Chaudhry on Tuesday, according to Dawn.

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The Gwadar port in Balochistan province was intended to be the crown jewel of the China-Pakistan Economic Corridor (CPEC), one of the most ambitious components of China’s Belt and Road Initiative (BRI). However, the port has not lived up to the promise despite billions of dollars in investments. The lack of commercial feasibility, lack of supporting infrastructure such as roads and electricity, and the security crisis from the Baloch insurgency are some of the reasons for the Gwadar port not living up to the promise.

Pakistan wants Gwadar to link Gulf with Central Asia

Even as the Gwadar port cannot attract cargo and passengers to its own shores, Pakistani government has now planned to make it a bridge between the Gulf countries and Central Asia.

Maritime Af­­fairs Muhammad Chaudhry said that additional shipping lines will be connected to Gwadar to facilitate greater movement of goods between Pakistan and Gulf countries and promote transit trade with Central Asia and the West Asia, according to Dawn.

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“The new routes will reduce pressure on existing ports and ensure faster, more efficient cargo handling,” said Chaudhry.

As for the ferry service between Pakistan and Gulf countries, Chaudhry dubbed it the “new lifeline” for the Balochistan province.

“The ferry service will strengthen people-to-people ties, boost tourism and provide a new economic lifeline for Balochistan. It will create local employment, improve supporting infrastructure and attract private sector participation, especially in the areas of ship services, hospitality and transportation.”

Gwadar port remains a dud

Despite billions of dollars in investment, the Gwadar port has turned out to be a dud. Even government mandates have failed to revive the port.

The Pakistani government has mandated that 60 per cent of all public sector imports and exports should be routed through the Gwadar port. Yet the port amounts to less than 2 per cent of Pakistan maritime imports and exports, dwarfing other major ports in the region.

For comparison, while Gwadar port, the crown jewel of CPEC, handles less than 1 million tons of cargo a year, Pakistan’s Karachi port handles around 65 million tons and India’s Mumbai port handles around 70 million tons.

The Gwadar airport, which is the largest in Pakistan by area, is located next door to the port and is also a dud. The airport has just three domestic flights and an international flight a week.

Earlier this year, a meeting chaired by Pakistani Minister for Planning and Development Ahsan Iqbal acknowledged that there was no real plan to do anything with the port despite building with grand rhetoric.

“The minister noted the lack of commercial analysis and a comprehensive operational plan for Gwadar Port, calling for immediate efforts to unlock its potential,” an official statement said, as per VOA News.

One of the reasons for the port’s failure is the security crisis in the Balochistan province. For decades, Baloch groups have been waging a self-determination movement against what they say is the occupation of their land systemic oppression by the Pakistani regime. The Baloch movement has often turned violent with attacks on Pakistani soldiers, police, and government personnel and facilities. Chinese workers and projects have also been attacked as they are seen as an extension of the Pakistan regime.