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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 Pakistan's independence. Still,
better late than never.
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