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Regarding Gwadar Port?

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Can anyone please inform that how much profit is expected to be gained by Pakistan through gwadar port(estimation)?How will it help in short and long term period? And will other countries other than china also benefit through this project? Thankyou
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There is no cap, lower or upper to right now. This still has to start first to get any estimate. In short with only China, World's 5% of oil can be transported from Pakistan. Also, the Chinese brands can go to middle east. We are talking about world largest trades. The only thing which we have to do is, improve our own security. This will eventually be helpful for us as nation to grow.

map_securing_oil_500.jpg


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BN-CY138_hsbcoi_F_20140525034621.jpg
 
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I had written this post and received 20+ thanks and positive ratings but after the forum was restored from old backup that post is gone now. I had written the post on Office and copy pasted the content before editing it further on PDF. So I would just copy paste again of whatever raw content I had saved in the laptop
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Pakistan China Economic Corridor

Chinese Version:

China has an economy of over $10 trillion dollars, reserves of over 3 trillion dollars and the world’s largest exporter of goods worth 2300 billion dollars and the combined International trade volume of 4200 billion dollars.

China has ambitious plans to create Silk Road Economic Belt (SREB) and Maritime Silk Road (MSR) connecting Middle East, Africa and Europe through rail, road and pipelines. Chinese companies has already spent hundreds of billions of dollars in Africa, Latin America, Middle East and European market and are highly successful in doing business with under-developed nations. China is the largest investor in South Asia and plans to expand its influence by pledging 100 billion dollars of investment in India, 46 billion dollars in Pakistan and 20 billion dollars in Bangladesh as a mean of foreign direct investment or soft loans.

Strait of Malacca

It is considered the most important trade route in the world with 25% of the world’s total traded goods passing through the Strait of Malacca in over 100,000 vessels. Approximately 35% of the world’s oil is carried to China, Japan, Korea and East Asia as well as 60% of Chinese oil imports from Gulf region passes through the Strait of Malacca. It takes about 12,000 kilometres or 45 days to reach Western China (unverified sources) as compared to 3000 kilometres of journey with 75% reduced time scale and massive savings in transportation cost if re-routed through the Pakistan-China economic corridor. The narrowest part of Strait of Malacca stretches to only 2.8 kilometres and China has strong reservations about the possible blockade by US naval forces in the event of war.

Benefits for China

As per the survey reports during the development of Gwadar port, it is estimated China will save approximately 20 billion dollars per year in transportation cost and provide direct port access to the underdeveloped Western China.

China wants to develop Western China comparatively to Eastern China and Gwadar port can play a significant role in the development of Western China.

There is also no denial to the fact that China will link the Pakistan-China Economic Corridor route to major cities in China and the same route can be linked further with Japan, Korea and Mongolia. I also foresee this future-silk route being linked to Central Asian Republics, India and Afghanistan as soon as the key infrastructure in Pakistan and China is ready and operational.

China also foresee that its current trade volume of $4.2 trillion dollars would have grown between $10 to $15 trillion dollars by the time this investment has been fully made until 2030 and the strait of Malacca is already congested and cannot fulfil the requirements of East Asia. China needs alternative routes to continue the pace of growth and the Pakistan-China Economic Corridor is the most significant, safe, efficient and cost effective route available for China.

By the time the Pakistan China Economic Corridor has been built and the vessels starts to dock at Gwadar port, the economy of Pakistan, China, South Asia and Central Asia would have increased by manifold and it is highly likely that China will save a lot more than estimated as the factors of two-way route and multiple nations connecting to the same route will come in.

Energy Projects

The reason China is keen to invest in energy projects is,
  • China wants to do business in Pakistan (burn coal, generate electricity for 6 cents, sell it for 8 cents per unit)
  • She wants to see stable Pakistan
  • She wants to strengthen relationship with Pakistan in order to protect her future interest
  • Economically strong Pakistan is in the interest of China
  • China also need electricity to fulfil their own projects in Pakistan
  • China wants to increase influence in Pakistan
The untold investment

China has invested billions of dollars in Pakistan since last 10 years and plans to invest more in separate projects not part of the MoU’s signed during the President XI’s visit in Pakistan. China will also invest further in order to protect its interest in Pakistan and this deal of 46 billion dollars is also not going to be the last deal made by China for the next 15 years. It is likely by the passage of time, several new projects will be lucrative enough for China to invest more.

It is also a good news that Pakistan will finally see significant investment coming in Pakistan after long time and will boost confidence for foreign investors to invest in various sectors of Pakistan.

The bitter truth

We have a history of signing MoU’s and China making commitments to Pakistan. It is estimated that roughly 65 billion dollars of projects were signed during 2001 and 2014 but less than 10% of the projects were ever materialised.

During the visit of Premier Wen Jiabao in 2010, China pledged to invest 30 billion dollars in Pakistan but no significant work was done after that. It was mostly reported due to our negligence, incompetence and corruption that the Chinese companies backed off from their commitment but it is a bitter truth that same can be repeated once again.

Pakistan Version:

Pakistan will be the most beneficiary of Pakistan-China Economic Corridor in short and medium term. China will most likely be gaining a lot more in long term but it is always going to be a win-win situation for both nations and will enhance the bilateral relationship between both countries.

Pakistan will be able to generate millions of jobs in all 4 provinces and 4 territories across the country and especially in under developed Balochistan. Gwadar will be transformed to become a mega-city thanks to the hard work and/or need of the hour. With the energy requirements fulfilled and availability of cheap electricity, Pakistan will be able to grow at faster pace, increased exports, providing relief to industries by offering cheaper electricity tariff and fulfilling non-stop energy requirement.

The planned route will link most of the major cities in Pakistan and will most likely create many new cities across the route. It might be the game changer for Pakistan if we can manage it properly. The biggest relief for Pakistan will be increased revenue in taxes, lower unemployment rate, earning billions of dollars from trade route, blessed infrastructure from China and the shadow of China being a good sign for security for short term goal. Hundreds of industrial parks will be created alongside the route to enrich the maximum benefit out of it.

Gwadar port

Not only will the Gwadar port link China with less than 3000 kilometres in distance, it will offload the burden from heavily congested Karachi ports. It will also create an environment of competition and help curtail corruption. Pakistan will be able to take the maximum benefit of this route by connecting every major city through the corridor and the planned Motorways across Pakistan. It is estimated that Pakistan will save at least 5 billion dollars from Gwadar port per year if the Chinese vessels were re-routed to Gwadar from the Strait of Malacca and this figure is only bound to increase in future.

I also foresee that we will be enhancing Karachi port and developing a new port soon at Ormara or Pasni to share the burden of existing ports.

Did Pakistan allure China or is it a Chinese project?

I believe it’s purely a Chinese project serving their own interest and future needs. The good thing for Pakistan is, Pakistan enjoy good relationship with China and it happens to be geographically located at such a place where it fits the purpose of China. The credit must go the serving Government regardless but it is technically a Chinese project, serving Chinese interest and future ambitions.

Repercussion of rising Chinese influence in Pakistan

I have always been stern opponent of completely handing over the control of our state assets to foreign nations. We have historically abide by the commandments conferred to us by the so-called Superpowers. With China soon reaching the stature of Super-Power it will be really hard for us to ask them to evacuate the ports if God forbid such a need arises after few years. I have always been a supporter of having complete control over state assets like Iran and we must learn to manage our internal affairs by ourselves. Pakistan has historically been fouled by the super powers and only served the purpose of puppets in the great game of chess and I will not be surprised if same is repeated again after few years.

We must learn the policy of being neutral at International arena and that’s what India is good at. In worst scenario we could handover the transfer of port to China at shared basis with the Government of Pakistan being the major stake holder and for a limited period only (non-negotiable). I am not doubting the good intentions of China but if we take too many favours from anybody, it will be hard for us to say No in the event of conflict.

Pakistan should not try to become the 24th province of China. It must act independently and make independent policies.
 
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I had written this post and received 20+ thanks and positive ratings but after the forum was restored from old backup that post is gone now. I had written the post on Office and copy pasted the content before editing it further on PDF. So I would just copy paste again of whatever raw content I had saved in the laptop
------------------

Pakistan China Economic Corridor

Chinese Version:

China has an economy of over $10 trillion dollars, reserves of over 3 trillion dollars and the world’s largest exporter of goods worth 2300 billion dollars and the combined International trade volume of 4200 billion dollars.

China has ambitious plans to create Silk Road Economic Belt (SREB) and Maritime Silk Road (MSR) connecting Middle East, Africa and Europe through rail, road and pipelines. Chinese companies has already spent hundreds of billions of dollars in Africa, Latin America, Middle East and European market and are highly successful in doing business with under-developed nations. China is the largest investor in South Asia and plans to expand its influence by pledging 100 billion dollars of investment in India, 46 billion dollars in Pakistan and 20 billion dollars in Bangladesh as a mean of foreign direct investment or soft loans.

Strait of Malacca

It is considered the most important trade route in the world with 25% of the world’s total traded goods passing through the Strait of Malacca in over 100,000 vessels. Approximately 35% of the world’s oil is carried to China, Japan, Korea and East Asia as well as 60% of Chinese oil imports from Gulf region passes through the Strait of Malacca. It takes about 12,000 kilometres or 45 days to reach Western China (unverified sources) as compared to 3000 kilometres of journey with 75% reduced time scale and massive savings in transportation cost if re-routed through the Pakistan-China economic corridor. The narrowest part of Strait of Malacca stretches to only 2.8 kilometres and China has strong reservations about the possible blockade by US naval forces in the event of war.

Benefits for China

As per the survey reports during the development of Gwadar port, it is estimated China will save approximately 20 billion dollars per year in transportation cost and provide direct port access to the underdeveloped Western China.

China wants to develop Western China comparatively to Eastern China and Gwadar port can play a significant role in the development of Western China.

There is also no denial to the fact that China will link the Pakistan-China Economic Corridor route to major cities in China and the same route can be linked further with Japan, Korea and Mongolia. I also foresee this future-silk route being linked to Central Asian Republics, India and Afghanistan as soon as the key infrastructure in Pakistan and China is ready and operational.

China also foresee that its current trade volume of $4.2 trillion dollars would have grown between $10 to $15 trillion dollars by the time this investment has been fully made until 2030 and the strait of Malacca is already congested and cannot fulfil the requirements of East Asia. China needs alternative routes to continue the pace of growth and the Pakistan-China Economic Corridor is the most significant, safe, efficient and cost effective route available for China.

By the time the Pakistan China Economic Corridor has been built and the vessels starts to dock at Gwadar port, the economy of Pakistan, China, South Asia and Central Asia would have increased by manifold and it is highly likely that China will save a lot more than estimated as the factors of two-way route and multiple nations connecting to the same route will come in.

Energy Projects

The reason China is keen to invest in energy projects is,
  • China wants to do business in Pakistan (burn coal, generate electricity for 6 cents, sell it for 8 cents per unit)
  • She wants to see stable Pakistan
  • She wants to strengthen relationship with Pakistan in order to protect her future interest
  • Economically strong Pakistan is in the interest of China
  • China also need electricity to fulfil their own projects in Pakistan
  • China wants to increase influence in Pakistan
The untold investment

China has invested billions of dollars in Pakistan since last 10 years and plans to invest more in separate projects not part of the MoU’s signed during the President XI’s visit in Pakistan. China will also invest further in order to protect its interest in Pakistan and this deal of 46 billion dollars is also not going to be the last deal made by China for the next 15 years. It is likely by the passage of time, several new projects will be lucrative enough for China to invest more.

It is also a good news that Pakistan will finally see significant investment coming in Pakistan after long time and will boost confidence for foreign investors to invest in various sectors of Pakistan.

The bitter truth

We have a history of signing MoU’s and China making commitments to Pakistan. It is estimated that roughly 65 billion dollars of projects were signed during 2001 and 2014 but less than 10% of the projects were ever materialised.

During the visit of Premier Wen Jiabao in 2010, China pledged to invest 30 billion dollars in Pakistan but no significant work was done after that. It was mostly reported due to our negligence, incompetence and corruption that the Chinese companies backed off from their commitment but it is a bitter truth that same can be repeated once again.

Pakistan Version:

Pakistan will be the most beneficiary of Pakistan-China Economic Corridor in short and medium term. China will most likely be gaining a lot more in long term but it is always going to be a win-win situation for both nations and will enhance the bilateral relationship between both countries.

Pakistan will be able to generate millions of jobs in all 4 provinces and 4 territories across the country and especially in under developed Balochistan. Gwadar will be transformed to become a mega-city thanks to the hard work and/or need of the hour. With the energy requirements fulfilled and availability of cheap electricity, Pakistan will be able to grow at faster pace, increased exports, providing relief to industries by offering cheaper electricity tariff and fulfilling non-stop energy requirement.

The planned route will link most of the major cities in Pakistan and will most likely create many new cities across the route. It might be the game changer for Pakistan if we can manage it properly. The biggest relief for Pakistan will be increased revenue in taxes, lower unemployment rate, earning billions of dollars from trade route, blessed infrastructure from China and the shadow of China being a good sign for security for short term goal. Hundreds of industrial parks will be created alongside the route to enrich the maximum benefit out of it.

Gwadar port

Not only will the Gwadar port link China with less than 3000 kilometres in distance, it will offload the burden from heavily congested Karachi ports. It will also create an environment of competition and help curtail corruption. Pakistan will be able to take the maximum benefit of this route by connecting every major city through the corridor and the planned Motorways across Pakistan. It is estimated that Pakistan will save at least 5 billion dollars from Gwadar port per year if the Chinese vessels were re-routed to Gwadar from the Strait of Malacca and this figure is only bound to increase in future.

I also foresee that we will be enhancing Karachi port and developing a new port soon at Ormara or Pasni to share the burden of existing ports.

Did Pakistan allure China or is it a Chinese project?

I believe it’s purely a Chinese project serving their own interest and future needs. The good thing for Pakistan is, Pakistan enjoy good relationship with China and it happens to be geographically located at such a place where it fits the purpose of China. The credit must go the serving Government regardless but it is technically a Chinese project, serving Chinese interest and future ambitions.

Repercussion of rising Chinese influence in Pakistan

I have always been stern opponent of completely handing over the control of our state assets to foreign nations. We have historically abide by the commandments conferred to us by the so-called Superpowers. With China soon reaching the stature of Super-Power it will be really hard for us to ask them to evacuate the ports if God forbid such a need arises after few years. I have always been a supporter of having complete control over state assets like Iran and we must learn to manage our internal affairs by ourselves. Pakistan has historically been fouled by the super powers and only served the purpose of puppets in the great game of chess and I will not be surprised if same is repeated again after few years.

We must learn the policy of being neutral at International arena and that’s what India is good at. In worst scenario we could handover the transfer of port to China at shared basis with the Government of Pakistan being the major stake holder and for a limited period only (non-negotiable). I am not doubting the good intentions of China but if we take too many favours from anybody, it will be hard for us to say No in the event of conflict.

Pakistan should not try to become the 24th province of China. It must act independently and make independent policies.

A very impressive article.
images


I had written this post and received 20+ thanks and positive ratings but after the forum was restored from old backup that post is gone now.
Thats cruel man!:(
 
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A very impressive article.
images



Thats cruel man!:(
I don't care about thanks count or posts. I remember my posts were somewhere around 17000 about 18 months ago and they still hover around 17500 or something... I don't even see the exact number anymore. I think so many hundreds of my posts been deleted in last few months due to restoration from back up. But it hardly makes any difference in life... What matters the most is the knowledge I gain out of this forum and share my views with members like you
 
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I appreciate your hard work,motive and priority. People with knowledge are hard to find on any forum.
Hope you continue contributing to PDF and help people like me out there.:tup:
 
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Will China's NAVY have presence at gwadar port for guarding?
 
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This @anonymus replied to one another delusional pakistani in another thread read it carefully

I think that delusion runs rampant among Pakistanis, and bad quality of education is an epidemic.I would demolish this pathetic post of yours assertion by assertion

This assertion betrays complete lack of understanding of Economics, and the difference between cost od Sea Transport vs Surface transport.

This is something about which I have posted earlier which was deleted when this website crashed.

Distance between Shanghai and Kashghar = 5121 Km

5121 Km - Distance from Shanghai to Kashgar

Distance between Kashghar and Gwadar = 2747 Km

2747 Km - Distance from Kashgar to Gwadar


Average Trucking cost per Ton per Km in China = 5 cents.

http://www.worldbank.org/transport/transportresults/regions/eap/eap-china-output.pdf

Average Trucking cost per Ton per Km in Pakistan = 1.8 cents.

https://www.iisd.org/gsi/sites/default/files/ffs_india_irade_trucking.pdf

These cost are of 2002 and would have become 7 cents for China and 3 cents for Pakistan, just by taking inflation into account.

This is the most conservative calculation as I am not taking into account Hazard premium that nature of Terrain imposes on Pakistan (Karakoram Highway is rated world's fourth most dangerous highwayWorld's 10 dangerous roads | CNN Travel ) and Hazard premium that China has to pay for transporting good through Takla Makan Desert , Kulum Shan mountains range, and Altai Shan mountain range.

But still let us calculate cost oftransporting a Tonn of good fromShanghai to Gwadar.

Cost incurred in Chinese territory = 0.07 X 5121 = $358.47

Cost incurred in Pakistani territory = 0.03 X 2747 = $82.41

So total cost from Shanghai to Gwadar for a tonn of goods= $440.88

Now let destination port be Dubai.

Cost of Transporting Dubai to Shanghai = $625 per TEU

http://www.simic.net.cn/news_list.php?lan=en&id=368&flag=cnports&pname=shanghai&page=10

Since standard 1 TEU= 21,600 Kg : Cost of Transporting 1 Ton via sea from Dubai to Shanghai = $28.93

Twenty-foot equivalent unit - Wikipedia, the free encyclopedia

Similarly cost from Karachi to Dubai for 1 TEU = $125 (rate for Gwadar are not available as port is not operational)

BusinessDubai.com - Bizneeds

Cost of Transporting 1 Ton from Karachi to Dubai = $5.787


Total cost of Shipping a Ton from Shanghai to Dubai via Gwadar = $446.67

Total cost of Shipping directly from Dubai to Shangahi = $28.93 which is 16 times less than that of Transporting via Gwadar.

Heck Total cost of Transport from Gwadar to Chinese border is more than what would be required for Transport from Dubai to Shanghai.


And this is not all. You beloved corridor passed through Khunjareb Pass which remain open only from May 1 to December 31.

Karakoram Highway

Only a fool would believe that it is a main route to anywhere. This is just a backup route for China in case Malacca strait is blocked.

Well researched post man
 
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Well researched post man
I copied it from another thread written buy anonymous , he busted all the Pakistani claim about gawadar their in detail plz check it out,:lol:

Chabahar vs Gwadar | Page 8

The funny thing is Pakistani believing that oil & natural gas to Xinjiang will be transported from Pakistan while in reality its not feasible & Xinjiang is right next to central Asia & is buying gas & oil from there & transporting it to rest of China at affordable price through its vast pipeline network & one more thing to note China has largest reserve of shale gas & one of the biggest basin of shale is in Xinjiang which Chinese will exploit in near future
 
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This @anonymus replied to one another delusional pakistani in another thread read it carefully

I think that delusion runs rampant among Pakistanis, and bad quality of education is an epidemic.I would demolish this pathetic post of yours assertion by assertion

This assertion betrays complete lack of understanding of Economics, and the difference between cost od Sea Transport vs Surface transport.

This is something about which I have posted earlier which was deleted when this website crashed.

Distance between Shanghai and Kashghar = 5121 Km

5121 Km - Distance from Shanghai to Kashgar

Distance between Kashghar and Gwadar = 2747 Km

2747 Km - Distance from Kashgar to Gwadar


Average Trucking cost per Ton per Km in China = 5 cents.

http://www.worldbank.org/transport/transportresults/regions/eap/eap-china-output.pdf

Average Trucking cost per Ton per Km in Pakistan = 1.8 cents.

https://www.iisd.org/gsi/sites/default/files/ffs_india_irade_trucking.pdf

These cost are of 2002 and would have become 7 cents for China and 3 cents for Pakistan, just by taking inflation into account.

This is the most conservative calculation as I am not taking into account Hazard premium that nature of Terrain imposes on Pakistan (Karakoram Highway is rated world's fourth most dangerous highwayWorld's 10 dangerous roads | CNN Travel ) and Hazard premium that China has to pay for transporting good through Takla Makan Desert , Kulum Shan mountains range, and Altai Shan mountain range.

But still let us calculate cost oftransporting a Tonn of good fromShanghai to Gwadar.

Cost incurred in Chinese territory = 0.07 X 5121 = $358.47

Cost incurred in Pakistani territory = 0.03 X 2747 = $82.41

So total cost from Shanghai to Gwadar for a tonn of goods= $440.88

Now let destination port be Dubai.

Cost of Transporting Dubai to Shanghai = $625 per TEU

http://www.simic.net.cn/news_list.php?lan=en&id=368&flag=cnports&pname=shanghai&page=10

Since standard 1 TEU= 21,600 Kg : Cost of Transporting 1 Ton via sea from Dubai to Shanghai = $28.93

Twenty-foot equivalent unit - Wikipedia, the free encyclopedia

Similarly cost from Karachi to Dubai for 1 TEU = $125 (rate for Gwadar are not available as port is not operational)

BusinessDubai.com - Bizneeds

Cost of Transporting 1 Ton from Karachi to Dubai = $5.787


Total cost of Shipping a Ton from Shanghai to Dubai via Gwadar = $446.67

Total cost of Shipping directly from Dubai to Shangahi = $28.93 which is 16 times less than that of Transporting via Gwadar.

Heck Total cost of Transport from Gwadar to Chinese border is more than what would be required for Transport from Dubai to Shanghai.


And this is not all. You beloved corridor passed through Khunjareb Pass which remain open only from May 1 to December 31.

Karakoram Highway

Only a fool would believe that it is a main route to anywhere. This is just a backup route for China in case Malacca strait is blocked.

First your posted reported for personal attack. i hope you get ban due to this much disrespect for Pakistanis. And so far my education concern, i am more educated then your whole family, MSc Degree holder for US.

Second, How you are posting by sea rates to compare sea rates. That tells your education level.

Third, go and read about how Gwadar to Kashghar trade gonna happen, for LNG and OIL they are going to use pipeline, rather then ship. Road Transportation can be as much cheaper as Ship (read Transport and distribution for international trade - Detailed guidance - GOV.UK

Fourth, direct access as to market unlike Sea delivery, since around 4 China towns including Port Administration is beng handed over to China. Which means it will be like a home for them, unlike worrying about India, USA, Philippine, or Vietnam to blocking the route.

So eat up your shit and live with this fact. You gonna loss ME market to china due to Gwadar, and advantage to block the supply.

It's Pakistan who can make use of it, to make it work for both countries. China & Pakistan.
 
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I copied it from another thread written buy anonymous , he busted all the Pakistani claim about gawadar their in detail plz check it out,:lol:

Chabahar vs Gwadar | Page 8

The funny thing is Pakistani believing that oil & natural gas to Xinjiang will be transported from Pakistan while in reality its not feasible & Xinjiang is right next to central Asia & is buying gas & oil from there & transporting it to rest of China at affordable price through its vast pipeline network & one more thing to note China has largest reserve of shale gas & one of the biggest basin of shale is in Xinjiang which Chinese will exploit in near future

LOL thx for the link man

First your posted reported for personal attack. i hope you get ban due to this much disrespect for Pakistanis. And so far my education concern, i am more educated then your whole family, MSc Degree holder for US.

Second, How you are posting by sea rates to compare sea rates. That tells your education level.

Third, go and read about how Gwadar to Kashghar trade gonna happen, for LNG and OIL they are going to use pipeline, rather then ship. Road Transportation can be as much cheaper as Ship (read Transport and distribution for international trade - Detailed guidance - GOV.UK

Fourth, direct access as to market unlike Sea delivery, since around 4 China towns including Port Administration is beng handed over to China. Which means it will be like a home for them, unlike worrying about India, USA, Philippine, or Vietnam to blocking the route.

So eat up your shit and live with this fact. You gonna loss ME market to china due to Gwadar, and advantage to block the supply.

It's Pakistan who can make use of it, to make it work for both countries. China & Pakistan.

Plz explain how are we gonna loose ME market to China or anyptyer country
 
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This @anonymus replied to one another delusional pakistani in another thread read it carefully

I think that delusion runs rampant among Pakistanis, and bad quality of education is an epidemic.I would demolish this pathetic post of yours assertion by assertion

This assertion betrays complete lack of understanding of Economics, and the difference between cost od Sea Transport vs Surface transport.

This is something about which I have posted earlier which was deleted when this website crashed.

Distance between Shanghai and Kashghar = 5121 Km

5121 Km - Distance from Shanghai to Kashgar

Distance between Kashghar and Gwadar = 2747 Km

2747 Km - Distance from Kashgar to Gwadar


Average Trucking cost per Ton per Km in China = 5 cents.

http://www.worldbank.org/transport/transportresults/regions/eap/eap-china-output.pdf

Average Trucking cost per Ton per Km in Pakistan = 1.8 cents.

https://www.iisd.org/gsi/sites/default/files/ffs_india_irade_trucking.pdf

These cost are of 2002 and would have become 7 cents for China and 3 cents for Pakistan, just by taking inflation into account.

This is the most conservative calculation as I am not taking into account Hazard premium that nature of Terrain imposes on Pakistan (Karakoram Highway is rated world's fourth most dangerous highwayWorld's 10 dangerous roads | CNN Travel ) and Hazard premium that China has to pay for transporting good through Takla Makan Desert , Kulum Shan mountains range, and Altai Shan mountain range.

But still let us calculate cost oftransporting a Tonn of good fromShanghai to Gwadar.

Cost incurred in Chinese territory = 0.07 X 5121 = $358.47

Cost incurred in Pakistani territory = 0.03 X 2747 = $82.41

So total cost from Shanghai to Gwadar for a tonn of goods= $440.88

Now let destination port be Dubai.

Cost of Transporting Dubai to Shanghai = $625 per TEU

http://www.simic.net.cn/news_list.php?lan=en&id=368&flag=cnports&pname=shanghai&page=10

Since standard 1 TEU= 21,600 Kg : Cost of Transporting 1 Ton via sea from Dubai to Shanghai = $28.93

Twenty-foot equivalent unit - Wikipedia, the free encyclopedia

Similarly cost from Karachi to Dubai for 1 TEU = $125 (rate for Gwadar are not available as port is not operational)

BusinessDubai.com - Bizneeds

Cost of Transporting 1 Ton from Karachi to Dubai = $5.787


Total cost of Shipping a Ton from Shanghai to Dubai via Gwadar = $446.67

Total cost of Shipping directly from Dubai to Shangahi = $28.93 which is 16 times less than that of Transporting via Gwadar.

Heck Total cost of Transport from Gwadar to Chinese border is more than what would be required for Transport from Dubai to Shanghai.


And this is not all. You beloved corridor passed through Khunjareb Pass which remain open only from May 1 to December 31.

Karakoram Highway

Only a fool would believe that it is a main route to anywhere. This is just a backup route for China in case Malacca strait is blocked.


I am a still a bit skeptical about those break up but I like your objective idea of dissecting things and taking an informed view rather than "since it's my country so it gotta be best"

Good Job !

First your posted reported for personal attack. i hope you get ban due to this much disrespect for Pakistanis. And so far my education concern, i am more educated then your whole family, MSc Degree holder for US.

Second, How you are posting by sea rates to compare sea rates. That tells your education level.

Third, go and read about how Gwadar to Kashghar trade gonna happen, for LNG and OIL they are going to use pipeline, rather then ship. Road Transportation can be as much cheaper as Ship (read Transport and distribution for international trade - Detailed guidance - GOV.UK


Fourth, direct access as to market unlike Sea delivery, since around 4 China towns including Port Administration is beng handed over to China. Which means it will be like a home for them, unlike worrying about India, USA, Philippine, or Vietnam to blocking the route.

So eat up your shit and live with this fact. You gonna loss ME market to china due to Gwadar, and advantage to block the supply.

It's Pakistan who can make use of it, to make it work for both countries. China & Pakistan.

Hey, why don't you come up with a counter based on maths and make a case for it rather than asking him to eat sh!t ? That would really help the discussion.

There is one more thing which goes counter to gwadar port is, the more the human handling the more are the chances of pilferage and transportation loss. Even a point percentage change may cause a difference of millions of $ of loss.
 
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Gwadar and the economic corridor means cheap chinese goods flooding the Pakistani market and killing the local industries. Pakistan is a big market for chinese industries and hence all the investment
 
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i know Gawadr has its many plus points for Pakistani .. But it also have some negative points
many will dis-agree to me ,but this is my own perception .. which can be wrong.. ;
BTW some of those negative points CAN BE that :

1) Our own Industries and Factories will nearly Collapse as all we know that chinese Products are very cheap (cost vise) as compare to pakisani products .. so the Chinese Containers will do a great effort in this case for chinese.. (as in case of NATO supply to Afghanistan through Pakistan ,, u can even buy u.s army Hk416 here if u are at right place and with right person)) .. so if you can buy a product with Chinese price let say 50 rupees , then who will be Mad enough to buy same Pakistani product for let say 80 rupees ??

2) they will not pay anything for using our roads,, as they are the one who are constructing these roads ..

3) They are giving us billion and billions of dollars of money as at the name of 'SOFT LONE'' and at the end they will demand it when it reaches to something like $80-90 billion and we will not be able to give it back.. At that time they will start influencing us as like America...
( Chinese are pure businessmen and they know how to Control things )
 
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