GWADAR PROJECTS IN CPEC

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EAST BAY EXPRESSWAY

The construction of East-bay expressway of the Gwadar Port was started a few months back and work is at full swing.

The Construction work on 19-KM six-lane expressway built alongside the under planned 2- way railway track is been carried out with  full speed. It would ease the cargo handling through road and increase connectivity with rest of the country. The project would improve logistic transportation of import and export. The completion of the East Bay Expressway would cut short travel time between major cities.

The expressway provides immediate and uninterrupted connectivity to Gwadar Port terminals with the Mehran Coastal Highway in the first phase and with New Gwadar International Airport in the second phase.

According to some source”An amount of Rs. 13.543 billion is been funded through government of China confessional loan whereas Rs. 0.519 billion would be arranged through local component”.

While running alongside the Gwadar Free Zone it will provided smooth connectivity to all.

GWADAR INTERNATIONAL AIRPORT:

China to soon start work on new Gwadar international airport. According to some reports the foundation will be laid in March 2018.

The Gwadar airport will cater to the needs of Gwadar deep sea port as part of the China Pakistan Economic Corridor (CPEC) would be an airport of international standards capable of handling the largest of passenger planes, including the A380 Boeing Jet..

Pakistan anticipates Gwadar becoming a regional economic hub and, in preparation for this, special emphasis is also being given for the development of New Gwadar International Airport, the move is aimed at facilitating the movement of international investors and visitors.

The CAA has earmarked 3000 acres of land 26km northeast of the existing airport. The new airport will be given international status and operate under the open skies policy. In the meantime, there are plans at the existing airport to further facilitate the movement of wide-bodied aircraft.

New Gwadar airport once completed will mark a new beginning of the Smart Port City of Gwadar.

CONSTRUCTION OF BREAK WATER,DREDGING OF BERTHING AREAS & CHANNELS

There is extensive plan for adding numerous berths all alongside East Bay and all these berths will have dredging around the births. Channels will also be well planned and developed.

Under the China-Pakistan Economic Corridor plan, China Overseas Port Holding Company (COPHC) is expanding  Gwadar Port with construction of nine new multipurpose berths on 3.2 kilometres of seafront to the east of the existing multipurpose berths.] COPHC will also build cargo terminals in the 12 kilometres of land to the north and northwest of the site along the shoreline of the Demi Zirr bay.

According to some newsl, COPHC has awarded $1.02 billion worth of contracts for expansion of the port. In addition to construction of nine berths and cargo terminals, plans for expanded port infrastructure also include several projects that will be financed by loans extended by Chinese state owned banks. The Gwadar Port dredging project will deepen approach channels to a depth of 14 meters from the current 11.5-meter depth, at a cost of $27 million. Dredging will enable docking of larger ships with a deadweight tonnage of up to 70,000 at Gwadar Port,while current capacity permits a maximum 20,000 DWT. Future plans call for dredging of the harbour to a depth of 20 meters to allow for docking of larger vessels. Also included as part of the CPEC infrastructure development package for port infrastructure is a $130 million breakwater around the port.

Ancillary infrastructure projects for the port will also be built as part of CPEC. A $114 million desalination plant will be developed to provide potable water to the city, while the Government of Pakistan will also contribute $35 million towards infrastructure projects in the Gwadar Special Economic Zone.

A floating liquefied natural gas facility that will have a capacity of 500 million cubic feet of liquified natural gas per day will also be built at the port as part of the $2.5 billion Gwadar-Nawabshah segment of the Iran–Pakistan gas pipeline, which is being built as a joint venture between Pakistan’s Inter State Gas System, and the China National Petroleum Corporation.The Pakistani government also intends to establish a training institute named Pak-China Technical and Vocational Institute at Gwadar which is to be completed at the cost of 943 million rupees to impart skills to local residents to train them to operate machinery at the port.

 

It is expected that the port will in beginning handle over one million tons of cargo, most of which will consist of construction materials for other CPEC projects. COPHC plans to eventually expand the port’s capacity to 400 million tons of cargo per year. Long terms plans for Gwadar Port call for a total of 100 berths to be built by 2045.

The government of China in August 2015 announced that the previously announced concessionary loans for several projects in Gwadar totalling $757 million would be converted 0% interest loans for which Pakistan will only be required to repay the principal value. The projects which are now to financed by the 0% interest loans include: the construction of the $140 million East Bay Expressway project, installation of breakwaters in Gwadar which will cost $130 million, a $360 million coal power plant in Gwadar, a $27 million project to dredge berths in Gwadar harbour, and a $100 million 300-bed hospital in Gwadar.[25]

INFRASTRUCTURE OF FREE ZONE & EPZS

A state of art and fast track infra structure construction works have been started in free zone.

The state-of-the-art Free Zone Area is been  built on reclaimed land in Northern Harbor (within the port area) and at land alongside East Bay  expressway. The development covering .ore than 2200 acres of land with a permanent Tax and Duties exemptions would enable port to optimize transport flows. Gwadar Free Zone has been designed with the unique needs of manufacturing & trading.

It is designed to take advantage of Balochistan’s rich fishery and mineral resources to develop relevant industries for overseas market and to develop light industry for the domestic consumption.

 

As a part of the light industry plan, China’s Linyi overseas market, a comprehensive shopping mall project, will soon be introduced into the free zone.

 

“The Linyi market in Gwadar will develop an overseas warehouse so as to make their goods not only available in the Pakistan market, but also in markets around the region.

 

The first round of investment has almost completed with projects on fishery and electric motors settled and business center enterprises moved in.

 

The second-phase construction of the free zone is featured with a huge stainless steel factory, which would create a considerable number of jobs for locals in Gwadar, which has a population of less than 100,000. With the further development of the port and free zone, work forces in other villages around Gwadar are expected to flow into Gwadar.

 

PORT RELATED INDUSTRIES

 

Gawadar Free Zone consruction worth Rs 200 billions. Work on construction of a 10-square kilometer free industrial zone CPEC in Gwadar is underway and the port city alone will be able to create about 40,000 jobs having more capicity of job opportunities in future.

 

“With the China-Pakistan Economic Corridor brought onto the fast track of construction and major political hurdles eliminated, we are expecting to see it progress to the stage where dozens of Special Economic Zones or Industrial Zones are to be established along the corridor. At the same time, China is championing a new concept of economic cooperation – International Capacity Cooperation . This chronological coincidence is a big opportunity for Pakistan in its effort to uplift the economic performance and national image. Yet, there are some lurking challenges that we have to deal with in a pre-emptive manner to ensure the smoothness of this mutually benefitting cooperation.”

 

 

 

NECESSARY FACILITIES OF FRESH WATER TREATMENT AND SUPPLY

 

Aggressive plans are been developed for not just meeting the local demand of fresh water but also to matter the future needs of port related as well as future extensions as well as requirements of water.

 

 

The project is aimed at implementing water supply, distribution system,

desalination plant, sewerage collection system and treatment plant as

planned in the Master Plan of Gwadar as a mega port city

in the medium term (2030) and long-term (2050) scenarios.

 

GWADAR SMART PORT CITY MASTER PLAN

 

The development of Gwadar is a strategic priority for the Government of Pakistan,

(GoP). The commercial, political, socio-economic, defense and regional connectivity

related benefits that can be realized once the port (and the city) reaches its full

potential make it imperative to develop the area without any further delay.

Lying at the mouth of the Persian Gulf, Gwadar is a strategic warm water deep sea

port developed by the GoP with assistance from the People’s Republic of China.

Inaugurated in 2007, the port is ideally located to serve the shipping lanes coming in

and out of the Persian Gulf via the choke-point of the Strait of Hormuz. In spite of

the fact that the sea channels off the coast of Gwadar carry roughly 15-17 million

barrels of oil every day (or a third of all the seaborne oil traded in the world), the port

of Gwadar has yet to fulfil its promise and take advantage of its strategic location. A

shortage of resources, the non-fulfilment of concession agreements by the GoP and

the original concessionaire (the Port of Singapore Authority), and the limited

commercial activity in Gwadar city have together retarded the development of the

port until 2013 when China was invited to take over the Gwadar Port and workout on a plan called CPEC.

 

The master plan (last updated in 2005) has two interdependent elements: the port,

and the city of Gwadar. This strategic focus on simultaneous development is primarily due to

the natural, symbiotic relationship that exists between a port and the city that surrounds it;

One cannot be developed without the other. In addition, the city around a port must also be

planned carefully in order to lay the foundation of a sustainable regional economy, drive local

business and increase port throughput. With the inclusion of the port in the China Pakistan

Economic Corridor project (CPECP), there came an urgent need to update the existing city plans

to reflect the new strategic direction. It is pertinent to mention here that the CPEC is already

in the advanced stages of execution and comprises of a comprehensive package of

motorways/expressways, national and urban railways, high-speed fibre-optic connectivity and associated urban and social infrastructure, stretching from Kashgar (in China) to Gwadar (in Pakistan). Under the plans for the corridor, it is envisaged that the port would be declared a

‘free’ port (to facilitate trans-shipment) and the city would be declared a ‘Special Economic

Zone’, in order to spur trade and investment.

As of 2013, the concession for the port has been awarded to a Chinese operator who is in the process of updating the port master plan  Building on the work that has already been completed, the idea is update the existing Master Plan of Gwadar City (with due consideration to the

master plan of the port so as to capture synergies), and develop strategies for the

establishment of Gwadar as a preferred economic and lifestyle destination.

For planning purposes, all avenues shall be considered, with particular emphasis on updating

the existing plans to reflect the latest thinking in sustainability, economic clustering and the

development of a regulatory environment that facilitates economic growth. In addition, the

confluence of physical, social and intellectual capital with Information and Communications

Technology (ICT) infrastructure will be integral to the revised plan, in order to ensure that

Gwadar City is developed along the lines of an integrated ‘Smart’ port city – a city that would

leverage information technology-based solutions to boost the economic productivity and

quality of life of its citizens, whilst minimizing resource consumption and pollution.

 

Objectives of the Assignment:

 

 Creating the vision and guiding strategic objectives for Gwadar City

 Updating the existing Master Plan of Gwadar City and its integration with the Master Plan

of the Gwadar Port

 Creating an inclusive and sustainable strategic development plan that ensures the socio�economic uplift of the Makran coast in general and the Gwadar Region in particular

 Recommending regulatory interventions and ways and means to develop Gwadar as a

‘Special Economic Zone’ and ensure near-term economic growth (including trickle down

effects)

 Clearly identifying Gwadar’s competitive advantages vis a vis regional ports and

developing a business case for the port, its contribution to export led growth, market

creation, industrialization, tourism and revenue generation

 Suggesting strategies to facilitate trade, tourism, community participation, public-private

partnerships and industrial and economic development on a national and regional level

 Catering for climate change adaptability, sustainability, infrastructure, energy production,

security of life & property, disaster risk reduction and mitigation

 Transforming Gwadar into a port of international standards and a smart, sustainable city

that can drive local, national and regional growth in the coming decades.

 

The smart port city master plan is been prepared by a leading Chinese consultancy firm i

 

 

 

INVESTMENT OPPORTUNITIES IN GWADAR

 

During last decade no substantial opportunities were highlighted except real estate and which had it’s own story of successes and failures. However with the Advent of CPEC program things have changed and more seriours efforts are made depicting the importance of Gwadar.

This is perhaps ideal time for business community to jump into the fast track development of Gwadar. The strategic placement of Gwadar has certainly made it known to all in the world . However the infra structure as well as social sector development is still far behind the need. It certainly reflects the available oppotunities for all and private sector will now play a major role in the fast track development of Gwadar.

Some of the projects are highlighted below :

Major Projects for Private Investors:

Establishment of Shipping Agencies

Goods Transportation Services

Proposal for starting ferry services between Gwadar, Karachi and the Gulf States

Large-scale residential schemes, all sorts of industrial projects and big hotels

Establishment of freezing and packing facilities for the fish industries

Wireless Cab System can be established

Establishment of large private schools and hospitals

Investment in Water Desalination Plants

Electric Power Generation

Oil terminals

Ware-housing/ Container Yards

Export Oriented Industries

Medium Size Projects for Private Investors

Establishment of restaurant, play lands, boat services and water sports etc

Establishment of printing press & newspaper industry

Superstores, Markets, Tourism Industries & small level fish processing units

As most of the people of Makran area are serving in military & police of the Middle East Countries on retirement can be hired by the private security agencies

According to the availability of the fresh water in the adjoining areas of Gwadar District, business such as Poultry, Dairy , Fruit and Vegetable cultivation could be established

Trawler/ truck Companies can be established

Private houses could be hired by private companies for office accommodation and guest houses

Various agencies of construction material, medicines and food items could be established

Investment in energy sector particularly renewable energy, LPG plants etc

Small warehousing

Small Scale Projects

Small Shops, restaurants, Coffee & Ice cream shops and individual cab services

Law firms & Chambers

Private Medical Clinics

Architects/ Town Planners

Business of Contractors

Fish Meal Factory

Avenues for Fish & Shrimp farming along the coast

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