Historical Perspective
	Benefits
	Scope of Work
	Human Resource
	Investment Opportunities
	Potential Projects

Historical Perspective
Located at the entrance of the Persian Gulf and about 460 kms from Karachi, Gwadar has had immense Geostrategic significance on many accounts. The continued unstable regional environment in the Persian Gulf in particular as a result of the Iran/Iraq war, the Gulf war and the emergence of the new Central Asian States has added to this importance. Considering the Geo-economic imperative of the regional changes, the ADB’s Ports Master Plan studies considered an alternate to the Persian Gulf Ports to capture the transit trade of the Central Asian Republic (CAR) as well as the trans-shipment trade of the region. Both Karachi and PQA were considered for such development but were found unattractive to major shipping lines due to the remoteness from the main shipping routes, the limitations of draft for mother ships and large bulk oil carriers and the comparative long turn around times. The ADB studies, however considered Gwadar to have the most advantageous location for such an alternative port in the region, which could handle mother ships and large oil tankers in due course.

Keeping that aspect in view as well as the inherent strategic and economic benefits that Gwadar Port offered, the transport plan of the 8th Five Year Plan (1993-94) of Pakistan included the development of Gwadar Port as an essential element of its aims and objectives. Technical and financial feasibilities therefore were under taken resulting in decisions for the development of Gwadar Port by the Govt. of Pakistan.

The Project started on 22 March 2002, is on fast track and will Inshaullah complete in schedule time i.e March 2005. In fact it would surprise many that with initiative and calculated risk, we have received merchant ships since Jan 2003 and have been able to off load hundreds of tones of cargo imported for the Project, thus saving precious time and money which otherwise is required for transportation of the same cargo by road from Karachi/PQA to Gwadar. 

Benefits
Besides the Geostrategic importance mentioned earlier, some of the evident economic benefits of the development of Gwadar Port are:

	Capitalize on opportunities for trade with landlocked Central Asian States and Afghanistan.
	Promote trade and transport with Gulf States.
	Trans-shipment essentially of containerized cargo.
	Unlock the development potential of hinterland.
	Diversion of influx of human resources from up country to Gwadar instead of Karachi.
	Socio economic uplift of the province of Balochistan.
	Establishment of shipping related industries.
	Oil storage, refinery and petrochemicals
	Export Processing and Industrial Zones
	Reduce congestion & dependency on existing Ports Complex at Karachi/PQA.
	Serve as an alternate port to handle Pakistani trade in case of blockade of existing ports.
	Will become a Regional Hub for major trade and commercial activities.

Scope of Work

The development of Gwadar Deep Sea Port as per approved PC-I and Master Plan is to be undertaken in two phases. Phase-I will comprise of:-

	3 Multipurpose Berths
	Length of Berths 602m
	4.5 Km long Approach Channel Dredged to 11.5m-12.5m.
	Turning Basin 450m dia.
	One 100m Service Berth.
	Related port infrastructure and port handling equipment & Pilot Boat, Tugs, Survey Vessel etc.

The port will be equipped with the essential port handling equipment and other infrastructure required for smooth operations of a modern port. On completion of Phase-I, the Port will handle Bulk Carriers of upto 30,000 DWT and Container Vessels of 25,000 DWT. Phase-I will be completed at a cost of Rs.14.9 Billion (US$. 248/- Million) and will complete in 36 months i.e. March 3005.

Phase – II
This Phase of the Project is planned to be built on BOO/BOT basis at an estimated cost US$. 600 Million. It will comprise of 9 additional berths as per following details:-

	4 Container Berths.
	1 Bulk Cargo Terminal (to handle 100,000 DWT ships).
	1 Grain Terminal.
	1 Ro-Ro Terminal.
	2 Oil Terminals to handle 200,000 DWT ships.

Phase II of the project involves construction of more berths on BOT basis including two container berths, one bulk cargo terminal, one grain terminal with capacity handling vessels up to 100,000 DWT, one roll on/ roll off terminal, two oil piers for vessels up to 200,000 DWT and future expansion of two container berths. On completion of the project, Gwadar Deep-sea port would be on of the world's most strategically located port in this part of the world.

On successful completion of Phase-I, it is anticipated that the private sector would come forward to invest in the second phase of the Project. It is envisaged that the complete development of such a Mega project will take 8-10 years depending on the active participation of the private sector.

Cost of The Project
Total amount equivalent to Rs 14.9 Billion (248 million US dollars) were approved by ECNEC for Phase-I of the project. The financial agreement for development of Phase-I was signed with the Govt. of China on 10 August 2001 under which the Chinese will provide US$. 198 Million and the Govt. of Pakistan will provide US$. 50 Million.

Chinese:

	Grant US$ 18 Million.
	New Grant Assistance US$ 31 Million.
	New Interest Free Loan US$ 31 Million
	Govt. Concessional Loan US$ 58 Million
	Buyer’s Credit US$ 60 Million
	Total US $ 198.00 Million

Pakistani:

Rs. 3000 Million (US 50.00 Million) in Local Currency.

Additional Development Cost:
Additional development costs were also envisaged for Electrical Supply 132 KV Transmission Line from Turbat to Gwadar at an approx cost Rs.360.00 million and a Railway line from Gwadar-Panjgoor-Dalbandin (515 Km) at approx cost of Rs.8, 500 million. This is however not a part of the sanction to the Gwadar Port Development Authority. 

Human Resource
The Chinese have mobilized 450 personal from China and hired 512 local workmen as per following detail:-

	Chinese: 450
	Pakistani: 512

Civil Works and Infrastructure Development:
The design and construction of residential buildings and civil works of various port operation buildings and related infrastructure development is to be undertaken by Pakistani contractors and firms out of the US dollars 50 Million allocated for the Project. In this regard consultants have been hired and process for pre-qualification of contractors has commenced. Similarly, award of contract for the construction of residential area was approved by the MOC in June 2003 and the Contractor has already fully mobilized and a construction activity has started.

Master Plan of GWADAR:
Concurrent with the Port development a Master Plan of Gwadar has been approved by Balochistan Government through NESPAK and which has been a hot topic of discussions at various forums. Implementation of the Master Plan is the responsibility of Govt. of Balochistan. Physically no headway has been made so far which is a matter of concern.

The following potentials have been identified in the Master Plan of Gwadar Deep Sea-port Project:

	Increased trade to and from Balochistan and Iran.
	Trade potential from Central Asian countries through Afghanistan.
	Transit cargo (liquid and dry bulk)
	Warehousing and assembly industries (EPZ)
	Oil storage, refineries, petrochemical industries etc.
	Handle the shipping traffic of the region.

Gwadar Master Plan envisages development of about 18,600 hectares of land for this project including the followings:

	Port development in Phase 1 & 11 on 400 hectares.
	An Export Processing Zone of 74 hectares located on land adjacent to the port in East Bay.
	A Special Industrial Zone of about 4,000 hectares lying to the north of the town.
	An oil refinery of 1,000 hectares located to the north east of the town, linked to the proposed oil terminal by an underground pipeline across East Bay.
	A residential area of 400 hectares stretching north of the existing town along West Bay.

To bring Gwadar close to the national mainstream, 700 Km long Makran Coastal Highway is in advanced stage of implementation. It will link Gwadar with Pasni, Ormara and Karachi. An other regional linkage is the Gwadar Ratto-Dero motorway linking it with Indus Highway through Turbat, Awaran and Khuzdar. A rail link is also planned to connect Gwadar to Quetta and Zahidan. Civil Aviation Authority also plans to upgrade the existing length of runway from 5,000 ft to 15,000 ft for operation of wide bodied jet air-crafts. The extension work will begin by end August, 2003 and the extension facilities will be available for use by end 2004. 

Investment Opportunities
Some of the evident investment opportunities:-

	Master Plan related infrastructure i.e. internal roads & services, water and power and communication services for the new township and the Industrial Zone.
	Private owned Ware Houses and Cold Storages.
	Private cargo handling equipment and trucking yards.
	Corporate Infrastructure i.e. offices for operating firms & agencies.
	Development of Industrial Zone and Industries.
	Development of Commercial/residential areas & buildings.
	Labour related amenities for thousands of workers employed on developmental work of Great Gwadar.
	Hotels & Motels.
	Hospitals, Colleges & Schools.
	Tourism related industry.
	Marine related industry i.e. shipyards, dry dock and repair yards.
	Marine Fuel bunkering for visiting ships to include large fuel storages and mobile barges etc.
	Oil refinery and large oil storages.
	Ferry services between Gwadar-Karachi/Oman/Bunder Abbas and UAE.
	Industrial Export Processing Zone
	Hinterland road; Gwadar – Rattodero Expressway (735 km) will pass through Turbat-Awaran-Khuzdar & Shahdad Kot.
	Gwadar-Quetta (via Turbat-Panjgoor-Kharan-Nushki) requires to be widened and improved. This link road will reduce the distance to Quetta from 1090 km to 795 km.
	Railway; Gwadar – Panjgoor-Dalbadin (515 km).
	Gwadar-Afghanistan via Quetta by National Highway- N-25.

Potential Projects at GWADAR Port
Gwadar being unexplored territory till to date as far as business is concerned; a lot of business activities are possible. There are numerous businesses that offer sizeable profits for the investors in Gwadar. Few are mentioned as under:

For more information of Gwadar Project Please contact the following Focal Person:

Gawadar Port
Rear Admiral (Retd) Sarfraz Khan (TIM)
Chairman
Gawadar Port Authority
2nd Floor, M.T. Khan Road, ENSC Building Karachi
Tel: 021-9202369 Res: 021-5878632 Fax: 021-9204050