China gets 40-year rights at Pakistani port

[Shotgunner51]

After removal of sanctions, Chabahar port will also have a development boom. Both Gwadar and Chabahar can become huge economic hubs without colliding each others' areas of activity. While Gwadar can be shortest route for China to export goods to Persian gulf (and even exporting goods to Iran itself through road and railroad), Chabahar can be easiest way for any country to reach Afghanistan, Central Asia Turkey and Russia. Be it China, India or other Asian countries.

So if there is a proper infrastructure in Pakistan, including roads and rail roads, it will also benefit Iran, since we can reach China and vice versa much easier.

A thriving economic region in Gwadar will help Iran's southeastern regions to thrive too, considering that we have more funds than Pakistan and also we have energy, we can help Pakistan by exporting electricity and natural has. This is a win-win situation.

Dubai might be a loser in middle of all this though.

Well said! Hope the process of integration can go faster. Ports, rail, expressways, power grids, oil/gas pipe-lines and others would largely enhance connectivity and boost trade. With sanctions lifted, AIIB founder-status and possibly even SCO membership, Iran would definitely get more integrated in the fast developing Eurasian economic bloc.

The recent development in Iran-Pakistan pipeline is a very good sign, things are moving on the right track now!

China to Build Pipeline From Iran to Pakistan: Deal to be signed during XI's vist

 

[AndrewJin]

What are those strategic requirements?

Thanks for the link. The biggest Indian port was JNPT with a volume of 4.161M TEU, ranked #34 according to World Shipping Council, behind SL's Colombo Port (undergoing expansion). Total for whole of India (13 major ports, 200 notified minor and intermediate ports) was 7.465M TEU, about 4% of China's volume.

Despite India has a very underdeveloped manufacturing base and a very low trade clout, given the size of population some works need to be done to boost the infrastructures like ports.

Their strategic requirements are their international role instead of domestic demand.

 

[Abhitej]

Well said! Hope the process of integration can go faster. Ports, rail, expressways, power grids, oil/gas pipe-lines and others would largely enhance connectivity and boost trade. With sanctions lifted, AIIB founder-status and possibly even SCO membership, Iran would definitely get more integrated in the fast developing Eurasian economic bloc.

The recent development in Iran-Pakistan pipeline is a very good sign, things are moving on the right track now!

China to Build Pipeline From Iran to Pakistan: Deal to be signed during XI's vist

Keep the funds in AIIB to finance chinese companies one they become bankrupt due to the coming Chinese economic collapse.

 

[Viper0011.]

Sounds good, but I believe most of the money which Pakistan will get through Gawadr port should be spend on Balochistan province & people of Balochistan, they deserve it & the province should be developed at rapid pace.

So if I follow your logic, you are saying, don't build assets and businesses which will employee Baluchis, will open schools, job for people. But give them the money and have no institutions creating a real economy in Baluchistan?? That's a crazy idea.
If the Gawader and other projects in Baluchistan go well, Baluchistan will become the highest growth area of Pakistan and it'll leave Sindh and KPK behind. It'll eventually leave Punjab behind too due to its size and how much can happen here. So why not wait for the projects to complete so you can see the real, long term transformation, vs. just giving money away, which hasn't helped anyone for many decades!!

 

[Icewolf]

If this is gone correctly Gwadar will be another Dubai in couple of years and the economic corridor will not only develop Balochistan but also develop the other cities of Pakistan such as Lahore, Islamabad, Peshawar. Pakistan can become another South Korea if cards are play correct, already the economy is back on its feet

 

[Fracker]

Frankly, this agreement finalising is slow as hell. Why China and Pakistan taking so much time to just have an agreement. It is been two years, when NS visited China, and this project came up. We Pakistanis are too much lazy don't understand, how world can change quickly.

Stop bloody politics and build Pakistan.

 

[Donatello]

Isn't 40 years a tad bit too long?

No.

 

[definitelynotIndian]

No.

no? its 40 years. 4 decades. you will get right to port in 2055 :O

 

[Donatello]

no? its 40 years. 4 decades. you will get right to port in 2055 :O

Don't care as long as the port is developed. Pakistan still retains the complete sovereign control of the port and the region. The Chinese are there to develop it and running a port is a big business these days. A lot of the ports around the world (including airports) are run privately or have sections being run by a different, non-state entity.

The 40 year time frame gives confidence to the investors that their investment is safe for at least that amount of time. No one would want to invest billions in building a port and a city around it if they'd have to worry about cashing in just 10 years later. Gwader will take at least 10 years to get any foothold. So 40 years is nothing.

 

[Sanchez]

China is the only country that can build the port and as well bring enough business to the port. It's strategically important to China when the port is linked to China's Xinjiang.

 

[black-hawk_101]

Will they now being building the whole city as well. I wish that the port will extend to Jiwani.

Also, Pakistan needs to have a nuclear plant there too with 5 units of 300MWs.

 

[Cheetah786]

Congratulations to both China and Pakistan ..

now PN needs a big fleet to protect the Gwadar Port ...

Xi's trip is expected to focus on a Pakistan-China Economic Corridor, a planned $46-billion network of roads, railways and energy projects linking Pakistan's deep water Gwadar port on the Arabian Sea with China's far-western Xinjiang region.

It would shorten the route for China's energy imports, bypassing the Straits of Malacca between Malaysia and Indonesia, a bottleneck at risk of blockade in wartime.

If the submarine deal is signed, China may also offer Pakistan concessions on building a refueling and mechanical station in Gwadar, a defense analyst said.

China's own submarines could use the station to extend their range in the Indian Ocean.

“China is thinking in terms of a maritime silk road now, something to connect the Indian Ocean and Pacific Ocean,” said a Pakistani defense official, who declined to be identified.

For Pakistan, the corridor is a cheap way to develop its violence-plagued and poverty-stricken Baluchistan province, home to Gwadar.

 

[shhh]

Neo-imperialism, this time it is economic!

Care to elaborate? as far as i know, no one is trying to present it as colonization except India.

The real nightmare is that a country like Pakistan becoming a modern, and one of the top 20 economies. Pakistan is 4-5 times smaller than India, and with 5 times less population. So it'll require significantly less capital and growth to cross India, in terms of quality of life, and richness (take an example of Dubai or Singapore).

But the real issue is, if Pakistan's economy crosses 1.5 or 1.9+ trillion dollars GDP, that would allow them to take their defense budget to $ 15-20 billion (already expected by 2021-2025). So if that happens, what are the regional implications?

With $ 15-20 billion defense budget, a 4-5 times smaller country can have a big enough air force and big enough of a navy that it can pretty much match India's Pakistan specific forces, by 1:1.25 (1.25 for India). Even if India decided to leave her other areas empty (crazy idea), and go for an all out war with Pakistan, it would be very difficult to win, as there won't be a whole lot of gap in capability, and India still has to protect herself from China, etc.

$ 15-20 billion worth of defense budget existing for just a few years, can buy a LOT of modern weapons and can create a very superior force (specially, with Pakistan's ability to produce many weapons internally). Similarly, with this much budget, Pakistan's navy, facing the Indian fleet towards Pakistan (not including an aircraft carrier for apples to apples comparison), will be only 10-15% less in numbers. Which is marginal. So India loses all these military advantages she may have right now.

Now add another dimension to this, another one of the fastest growing economy, still cheaper than India, right on India's doorsteps, supported by the Chinese and the new relationships that Pakistan will form by then (with Russia, Central Russian States, African nations, the West, etc). So its an interesting situation for India. Just the Chinese trade route alone, will start to generate enough money every year that it'll take care of Pakistan's budget gaps and losses right now, through taxes, new cities which will form around the trade route, hundreds of thousands of new businesses, jobs, schools, universities, hospitals, etc, etc.

Note that Mexico's GDP is around $ 1.2 trillion and Australia's is $ 1.4 Trillion, with KSA at $ 777 Billion, but all these countries are 20-30 times smaller in terms of the Pakistani population. So there is no doubt that Pakistan can't grow her economy to $ 1.5+ trillion.

Are you U.S or Pakistani? And don't you think Indian Navy would also improve by that time to maintain the gap? They economy is also rising and they sure are also going to get more friends and more deep relations with those friends.

 

[Sage]

You need to sort out the terrorists inside. Gwadar is pretty safe from our range. Since it is near the border with Iran, you are directly competing with them. And industrial sabotage can be pretty nasty.

Who have done huge investment in Cha Bahar ?

 

[axisofevil]

If this is gone correctly Gwadar will be another Dubai in couple of years and the economic corridor will not only develop Balochistan but also develop the other cities of Pakistan such as Lahore, Islamabad, Peshawar. Pakistan can become another South Korea if cards are play correct, already the economy is back on its feet

LMAO....Dubai? The UAE will make sure you never compete against them...