Gwadar - A Jewel in the Crown

[Neo]

Seems there is no detail as to why the link is not commercially viable. Can't be profitable due to high maintenance cost?

That plus the volume of trade.

 

[nabeel190]

i think gwader is really good place and because china bought the gwader port that will also help pakistan in many ways.

 

[Neo]

i think gwader is really good place and because china bought the gwader port that will also help pakistan in many ways.

Correction: China didn't buy the port but helped it build and invested around $380 million.
Operational Management and Strategic Planning is in the hands of Singapore Port Trust.

 

[Awaaz]

Well china has not bought it but has major influence in the area as it financed and constructed gwadar port, mostly for benifit of pakistan and its own strategic interests.

 

[Neo]

TCP to be persuaded to import wheat via Gwadar ​

ISLAMABAD (September 08 2008): The government has constituted a three-member committee to convince the Trading Corporation of Pakistan (TCP) to import wheat through Gwadar Port, which is said to be uneconomical, official sources told Business Recorder.

The TCP had been directed by the Economic Co-ordination Committee (ECC) to import wheat through Gwadar Port at the request of Balochistan government, but the Corporation did not implement the decision.

"The TCP is in not importing wheat through Gwadar Port although ECC had decided that some wheat should be imported through Gwadar," the sources added. Responding to the accusations, the TCP chairman said that it was not feasible to import wheat through Gwadar as it would raise costs. There is a wide disparity between Gwadar and other ports, Port Qasim or Karachi Port, with respect to handling and transportation charges, the sources continued.

Sources said some of the ECC members at a recent meeting of the ECC took exception to the attitude of the TCP and insisted that Gwadar be made fully functional regardless of its higher handling and transportation charges.

In order to settle this issue, the ECC approved constitution of a committee under the chairmanship of the Ports and Shipping minister, Commerce secretary, and TCP chairman, which would deliberate on the matter and place their recommendations before the Daily Economic Monitoring Committee (Demc). When contacted an official of the commerce ministry stated that the ministry has finalised recommendations to submit to the committee.

According to sources, the ECC was also informed of the import profile of wheat and it was stated that out of 2.5 million tonnes, the Corporation had, as of August 18, purchased 1.53 million tonnes.

Sources said that the Cabinet, in its meeting in Karachi in July, had considered a proposal of the Ports and Shipping Ministry to shift 20 percent workload of Port Qasim and Karachi Port to Gwadar Port. Despite its outsourcing to Port of Singapore Authority, the element of inertia is evident, which requires similar government support as was earlier extended to the Port Qasim at its initial stages through allocation of assured cargo.

According to sources, the Ports and Shipping Ministry secretary had expressed the view that Gwadar Port has already handled a wheat-carrying ship in March 2008, and the port operator has adequate arrangements for handling any fresh consignments. Balochistan government has also proposed that 2.5 million tonnes of wheat, being imported by the federal government, should be handled at the Gwadar Port to strengthen operational activity.

Besides, the Balochistan governor had recommended that 20 percent of the workload of other ports should be shifted to Gwadar. Sources said that the secretaries committee, headed by the finance minister, in its meeting on June 18, had recommended that the federal government should at least allow import of wheat destined for Balochistan through Gwadar Port.

 

[Neo]

Gawadar to get 100MW from Iran ​

Saturday, September 20, 2008

ISLAMABAD: Iranian Energy minister is due to visit Pakistan from October 15 to 17 and will participate in the launching ceremony of transmission line for import of 100MW power for Gawadar from Iran.

Ambassador of Iran to Pakistan, Masha allah Shakeri sated this on Friday in meeting with Federal Minister for Water and Power Raja Pervez Ashraf. It was agreed in the meeting to expedite the process of importing 100MW power by Pakistan from Iran on the fast track basis for its early completion.

The ambassador offered to invest in the power projects and said the Iranian companies are also interested in up-gradation projects of transmission lines system in the country on low cost basis. He also offered sizeable investment in hydropower plants and expressed intention to finance power projects in the country. He stated the Iranian government would provide all type of assistance to the new political government in every sector.

The minister while welcoming the Iranian envoy said the country had close brotherly relations with Iran. Pakistan values the help and support of Iran and is desirous of expanding bilateral relations in all sectors.

He said currently the country is facing many internal and external challenges and energy deficit is also one of them. The government is taking necessary measures to generate electricity to bridge the demand and supply gap through fast track projects.

The government has planned to bring 35,000MW by the year 2016 and steps are being taken in this regard. He said the government now attaches high priority to exploit the indigenous resources like coal, hydro and wind for power generation. He said that first wind mill in the private sector will be operative next month.

Ashraf lauded the offer of the Iranian side and said Pakistan has already signed an MoU to purchase of 100MW from Iran. He also assured his full support and assistance to facilitate Iranian investors to invest in water and power sectors in Pakistan. He also expressed this meeting would further strengthen and enhance the bilateral and economic relations between the two countries.

 

[Neo]

Iran-Gwadar power transmission line to be launched next month​

* Iranian envoy offers investment in power sector​

ISLAMABAD: The launching ceremony of the transmission line for import of 100MW power to Gwadar from Iran would be held here next month during the visit of Iranian minister for energy to Pakistan from Oct 15 to 17.

Sources said Iran has also assured to provide financing for power import projects of 100MW that would be followed by an additional 1,000MW power import project for which Pakistan and Iran have signed a Memorandum of Understanding (MoU).

The National Engineering Services Pakistan (NESPAK) and Iranian experts are working on the feasibility study of the 1,000MW power import project and Pakistan has provided Rs 53 million for this purpose.

The decision of holding a launching ceremony came in a meeting of Ambassador of Iran to Pakistan Masha’ Allah Shakeri on Friday who called on the Federal Minister for Water and Power, Raja Pervez Ashraf at his office and discussed matters of mutual interest, bilateral relations to further boost economic ties between the two countries.

It was also agreed in the meeting to expedite the process of Pakistan importing 1,000MW power from Iran on a fast-track basis for its early completion. Iran would also provide financing for materializing the projects of power imports from Iran.

The ambassador offered to invest in power projects and said Iranian companies were also interested for upgrading transmission lines system projects in Pakistan on low-cost basis. He also offered sizeable investment in hydropower plants.

The ambassador stated that the Iranian government would provide all type of assistance to the new political government in every sector.

The minister while welcoming the Iranian envoy said that Pakistan had close brotherly relations with Iran. Pakistan values the help and support of Iran and is desirous of expanding bilateral relations in all sectors.

The minister said that currently Pakistan is facing many internal and external challenges and energy deficit is also one of them. The government is taking necessary measures to generate electricity to bridge the demand and supply gap through fast track projects. The government has planned to bring 35,000MW by the year 2016 and steps were being taken in this regard. He informed that the government now attaches high priority to exploit the indigenous resources like coal, hydel and wind for power generation. He said the first wind mill in the private sector will be operative next month.

Ashraf lauded the offer of the Iranian side and assured full support and assistance to facilitate Iranians to invest in water and power sectors in Pakistan.

 

[Neo]

Package likely for Gwadar EPZ to attract investment: ECC meets today ​

ISLAMABAD (September 23 2008): The Economic Co-ordination Committee (ECC) of the Cabinet is likely to approve an incentives-laden package for Gwadar Export Processing Zone (GEPZ) when it meets here on Tuesday (September 23). Prime Minister Yousuf Raza Gilani would be in the chair. The Ministry of Industries and Production has submitted a summary to the ECC for grant of a lucrative package of incentives to attract investment for the GEPZ.

Sources said the incentive package included 10-year tax holiday for the GEPZ, and added the tax holiday would be applicable to the investors from the date of start of commercial operation of the project, permission for export of production from the zone to tariff area of the country up to 80 percent on the payment of normal duties.

According the sources, the package also promises normal incentives for exports from the GEPZ as available to projects, established anywhere in the country, would be applicable to exports from the projects in the zone. As an incentive, the plots in the GEPZ would be provided to investors on lease (as per the existing EPZA procedure) at a reasonable rate to be determined in consultation with the government of Balochistan, said the sources.

The package also includes zero-rated sales tax on supply of construction materials to the GEPZ investors or development of zone infrastructure. It also includes exemption from stamp duty and exemption from import policy orders issued from time to time.

The sources said the presentation on national economy was another important item of the ECC agenda, and added the Finance Division would brief the ECC on the latest economic condition of the country and the challenges it was facing due to slow down of its major sectors and widening gap of the current account deficit. The committee would be also apprised of the measures taken to overcome financial crisis and the negotiations held with an International Monetary Fund (IMF) mission.

The presentation will cover the impact of international credit cards crisis on Pakistan's economy, the sources, and added the Finance Division would apprise the committee about Economic Monitoring Committee's (EMC) decisions. Trading Corporation Pakistan (TCP) Chairman would brief the committee on availability of sugar, wheat and urea fertiliser. He would also inform the committee on the latest status of import of urea from Saudi Arabia, said the sources.

According to the sources, the Utility Store Corporation (USC) Managing Director would inform the committee on the steps taken by his department to sell items of daily use on subsidised rates and availability on its outlets. The committee would also review key indicators of the economy and their performance to support the ailing economy. The ECC would also consider for approval a textile industry's summary for tariff structure of polyester chain and magnetisation of tariff, said the sources.

 

[UnitedPak]

Gwadar port faces hurdles

By By Aftab Maken
9/28/2008
ISLAMABAD: The government’s lack of political will and some hidden forces are the main hurdles in the way of fully operationalising the Gwadar deep-sea port, it is reliably learnt.

The port, which is the third deep-sea port in the country, was inaugurated in March 2005 by then president Pervez Musharraf and became operational in March this year when first ship carrying 52,000 tonnes of wheat from Canada berthed at the port.

“Without the federal government’s active support, the Gwadar port cannot be operational and it will remain a dream to make it a hub of activities in the area and an alternative port for the rest of the country,” said Muhammad Salim Khan, Secretary Ports and Shipping, when asked for comments.

The federal government provided not only funds but also infrastructure facilities to the two main ports in Karachi in the recent past, he said.

According to experts, the port would prove to be a trade corridor for central Asian states, China and the Gulf as 60 per cent trade of oil and gas is done through this route. China has provided 80 per cent of Gwadar port’s $248 million initial development cost.

“It is the political will of the government that can only make the port operational, otherwise it is not economically viable to ship imported goods from other ports of the world,” said a member of a committee formed by the Economic Coordination Committee to report on the economic viability of the port.

The ECC of the cabinet, after the request of Balochistan Chief Minister Nawab Aslam Raisani, directed the authorities concerned to allow one-third of total imported wheat to be shipped to Gwadar but later changed the decision saying that the allocation should be made after reviewing economic viability of the shipments. Finally, the ECC formed a committee to submit a report for making the port operational.

“None of the shipping companies and importers were ready to offer lower bids for shipments to the Gwadar port compared to the Port Qasim and Karachi Port thus leaving no option for the authorities but to receive imported commodities at the two main ports,” said another member of the committee.

Another problem for imported goods at Gwadar is that the importers need extra Rs2,200 per tonne to transport the goods from Gwadar to Karachi or to Quetta via Sukkur as infrastructure facilities were yet to be completed, the official added.

Putting aside all these reservations about the Gwadar port, the ports and shipping secretary said, “there was celebration in the town when first ship from Canada docked at the port last year and businesses like hotelling and other related activities were in full swing.”

Citing another hurdle in the way of Gwadar port, a national leader from Balohcistan was of the view that a powerful lobby from Karachi was mainly behind this to block it as it would hurt activities at the ports in Karachi.

Gwadar port faces hurdles

 

[UnitedPak]

Govt. committed to development of shipbuilding industry: Gilani

ISLAMABAD, Sep 30 (APP): Prime Minister Syed Yousuf Raza Gilani while expressing government’s resolve for the development of shipbuilding industry in Pakistan said that the setting up of two shipyards in Karachi and Gwadar would go a long way in catering to domestic as well as international needs. The Prime Minister observed this while chairing a meeting to review the progress on the development of shipbuilding industry in the country here at the Prime Minister House Tuesday afternoon.

The Prime Minister constituted a committee under the chairmanship of Minister for Ports and Shipping Qamar Zaman Kaira to finalise the sites for building shipyards at Karachi and Gwadar.

The committee will submit its report before the policy board within two weeks for final approval.

Other members of the committee include Secretary Ports and Shipping, Secretary Defence Production, MD Karachi Shipyards, Chairman Port Qasim Authority and Chairman Gwadar Port Authority.

The Prime Minister emphasized upon the need to make Pakistan a leading shipbuilding country of the region, thus contributing towards economic development and poverty alleviation.

While highlighting Pakistan’s unique geo-strategic location and trained manpower, the Prime Minister said that this advantage needs to be leveraged to enter into shipbuilding industry in a big way through joint ventures with reputable international shipyards.

He said shipyards not only generate employment opportunities but also develop wide range of ancillary industries.

Earlier, MD Karachi Shipyards briefed the Prime Minister about the progress made on the development of shipbuilding. He also apprised the Prime Minister that two world class shipyards on joint venture basis are proposed to be built at Gwadar and Port Qasim. These projects, he informed, will attract major investment from foreign sources.

The meeting was attended by Minister for Ports and Shipping Qamar Zaman Kaira, Chief of Naval Staff Admiral M. Afzal Tahir, Secretary Defence Production, Secretary Ports and Shipping, Secretary Planning, Secretary BOI and Managing Director Karachi Shipyard.

Associated Press Of Pakistan ( Pakistan's Premier NEWS Agency )

 

[Neo]

Gwadar oil city project stumbles ​

Wednesday, October 01, 2008

ISLAMABAD: A mega oil city at Gwadar port, which is the most strategic project with an investment of $40 billion, has hit snags as the process of acquiring land has been delayed because of a massive rise in prices of real estate.

The Government of Balochistan has informed the federal government that the cost of land for the oil city has increased manifold, which is why it is not possible to acquire land on nominal rates.

The government wants to establish at the Gwadar port the biggest crude and refined oil storage base in the region, for which it had allotted 12,500 acres of land in 2006. It had announced that the required land be made available on lease at nominal rates to interested parties for setting up refineries or making investment in oil logistics and storage facilities.

But in the latest scenario, the cash-strapped Balochistan government has no money to pay the high cost of the land needed for the project.

An official said the Balochistan administration had told the Centre that it had identified 100,000 acres of land for the project at a cost of Rs38,000 to 40,000 per acre. Balochistan also requested for release of Rs3.8 billion to acquire the land and warned of more increase in land prices if funds were not released timely.

Under the plan, the official said, the project would be executed in two phases. In Phase-1, a petrochemical city will be set up with an initial investment of $12.5 billion. In this city, a big refinery, along with petrochemical, oil logistics and storage complexes will be set up.

In the first three years, the refinery will be able to refine 10.5 million tonnes of oil annually. This capacity will be increased up to 21 million tonnes in seven to nine years.

The official said Chinese Petroleum Chamber would come up with a $12.5 billion investment plan for the project.

On behalf of China, Great United Petroleum Holdings Company Limited (GUPC) is working on the feasibility study of the petrochemical city project.

The official said GUPC would first conduct the feasibility study and preparation work for the project and then both countries would enter into a formal agreement for materialising the petrochemical city project.

The official said GUPC would also build 1,000-2,000 service stations in Pakistan as service terminals for the petrochemical city.

 

[Neo]

Gwadar airport faces delay due to slow land acquisition ​

Wednesday, October 01, 2008

ISLAMABAD: The New International Airport at Gwadar faces inordinate delay because of a massive slowdown in the process of acquiring land for the project, a senior government official told The News.

“The new airport that is to cost $200 to $250 million will be given international status and operate under the open sky policy. In the meantime, there are plans to improve facilities at the existing airport.” The official said unfortunately, this vital project has hit snags at the preliminary stage of land acquisition.

“Earlier, the cost of acquiring 4,300 acres of land for the project was approved at Rs1.05 billion, which has now swelled to Rs1.5 billion, a 50 per cent increase.”

Now the Planning Commission has revised upward the price of land after the government of Balochistan informed the centre that its cost has increased. The land acquisition process should have been completed much earlier as this important project was supposed to come on stream in 2009. Now execution of the project will be delayed by about six months. Owing to delay, the overrun cost of the project would also increase.

Now the government has released Rs1.5 billion to complete the acquisition of land for New International Airport at Gwadar. The Civil Aviation Authority, which is the executing agency, has been asked to look for a private party to initiate the construction process of the New International Port once the land acquisition process is over.

To a question the official said that the New International Airport will be constructed at Gurandari, 26 kilometers east of Gawadar city. This airport will provide speedy traveling to the investors coming in and going out of the port, which will be the hub of business activities in the region.

The official went on to say that Gwadar is located on the southwestern coast of Pakistan, close to the important Straits of Hormuz, through which more than 13 million bbd of oil passes. It is strategically located between three increasingly important regions of the world, the oil-rich Middle East, heavily populated South Asia and the economically emerging and resource-rich Central Asia.

 

[UnitedPak]

Pakistan forms body to finalize sites for shipyard projects

Business Recorder reported that Mr Syed Yousuf Raza Gilani PM of Pakistan has constituted a committee under the chairmanship of Minister for Ports and Shipping Qamar Zaman Kaira to finalize the sites for building shipyards at Karachi and Gwadar.

The Prime Minister constituted the committee following a meeting to review the progress on the development of shipbuilding industry in the country here on Tuesday. Members of the committee include Secretary of Port and Shipping; Secretary, Defence Production, Managing Director of Karachi Shipyard, Chairmen of Port Qasim Authority and Gwadar Port Authority.

Mr Gilani expressed the government's resolve for the development of shipbuilding industry in the country, saying that setting up of two shipyards in Karachi and Gwadar would go a long way in catering to domestic as well as international needs.

He stressed that the need for making Pakistan a leading shipbuilding country of the region, thus contributing towards economic development and poverty alleviation. Highlighting Pakistan's unique geo-strategic location and trained manpower, the Prime Minister said that this advantage needed to be leveraged to enter the shipbuilding industry in a big way through joint ventures with reputable international shipyards.

He said that shipyards not only generated employment opportunities, but also developed wide range of ancillary industries. Earlier the Managing Director of Karachi Shipyard briefed the Prime Minister about the progress made on the development of shipbuilding.
He also said that two world class shipyards on joint venture basis were proposed to be built at Gwadar and Port Qasim. These projects would attract major investment from foreign sources.

http://steelguru.com/news/index/200..._to_finalize_sites_for_shipyard_projects.html

 

[UnitedPak]

WB to provide $2.25 billion for trade and energy corridor

* Loan expected to ease burden on Finance Ministry for providing Rs 2 billion to PSO for oil terminal at Gwadar
* China to develop oil city in Gwadar, railway track to be laid to China

By Zafar Bhutta

ISLAMABAD: The World Bank (WB) is likely to provide Pakistan $2.25 billion to lay the infrastructure of a ‘trade and energy corridor’, a senior official in the Petroleum Ministry told Daily Times.

The official said Pakistan had requested the WB authorities to provide $2.25 billion for developing the infrastructure of the trade and energy corridor that would serve as a gateway for commerce and transport between South Asia, Central Asia, China and the Gulf countries.

He said negotiations were under way and the WB had indicated it would provide the loan.

Oil Terminal: The official said the government had planned setting up an oil terminal at the Gwadar Port and the Pakistan State Oil (PSO) had estimated the setting up of the terminal would require Rs 2 billion. He said the Planning Commission had asked the Finance Ministry to provide the amount to the PSO. He said the Finance Ministry was under pressure regarding the financing and WB funding could help in the circumstances.

China: He added China would develop an ‘oil city’ in Gwadar and many oil refineries would be set up, resulting in huge investment as well as enhancing Pakistan’s oil storage capacity. He said a railway track would be laid from Gwadar to China to provide transportation to Chinese investors.

He said that with the sustained inflow of investment, Pakistan would be able to execute projects worth billions of dollars and utilise the Gwadar Port’s key location to best advantage.

“Any land-based trade between the Gulf region and the South Asian states can best take place through Pakistan. The country would work as a link between the Gulf region, Iran, Afghanistan, China and Central Asia that would make all of us natural trading partners,” he said. “Pakistan is the ideal approach for the shipment of Indian goods to Afghanistan and the Central Asian markets,” he added.

He said transit through Pakistan could provide the most economical shipment route of fuel from energy-rich Gulf states, Iran and Turkmenistan to energy-deficient India. This would be particularly effective for natural gas pipelines from Iran and Turkmenistan.

Daily Times - Leading News Resource of Pakistan

 

[UnitedPak]

Gwadar-Ratto Dero road to be completed by 2010

ISLAMABAD, Oct 24 (APP): The National Highways Authority (NHA) will complete the linked road from Gwadar Port to Ratto Dero by the end of 2010, said a spokesman of Ministry of Ports and Shipping.

Talk to APP, here on Friday, the spokesman of the authority said that Gwadar Port is functioning very well and other development works at Gwadar Port are in full swing.

He said the link road would be completed within the stipulated timeframe.

He said that the Ministry of Ports and Shipping has also constructed a residential complex for employees of Gwadar Port.

He said that layout of railway track from Gwadar to China has been finalised and its construction work would be started soon, adding that Gwadar Port was an attractive place for the business community.

Associated Press Of Pakistan ( Pakistan's Premier NEWS Agency ) - Gwadar-Ratto Dero road to be completed by 2010