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saj2go (Minar e Pakistan - Tomb of ..)
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Singapore takes over Pakistani port (Gwadar)

By Syed Fazl-e-Haider

QUETTA, Pakistan - Gwadar port on the Arabian Sea in the southwestern Pakistani province of Balochistan has been handed over to a Singaporean firm, which will run it for 40 years.

The concession agreement for handing over operating rights of the seaport to the Port of Singapore Authority was signed on Tuesday between the Gwadar Port Authority (GPA) and the concession-holder company (CHC), a subsidiary of PSA International. Under the deal, the first ship and cargo will be handled at Gwadar port next month.

Under the agreement, the GPA will receive revenues from PSA over a period of 40 years. The investment, revenues and income received from Gwadar port's entire operations have been estimated at between US$23.6 billion and $42.2 billion.

The concession holder has committed to installing two additional quayside gantry cranes for the handling of containers within nine months. The PSA will also undertake construction of 14 more berths in a 4.5-square-kilometer area beside the existing three berths. The cargo-handling capacity of Gwadar port will be expanded by up to 300 million tonnes from the current 50 million tonnes within the next two decades.

China financed 80% of the project's $248 million initial development costs. In December, a consortium led by PSA won the contract to operate the deepsea port on the Arabian Sea. Under the agreement, PSA will run the port for 40 years, during which time it will be exempted from corporate tax. Pakistan's AKD Group is part of the Singaporean consortium. PSA has envisaged investing $3 billion in the project, of which $550 million would be invested in the first five years.

PSA International is owned by the Singaporean government's investment-holding company Temasek. Strategically located Gwadar will be a significant addition to PSA's global network of deepsea ports. PSA is a global leader in the ports and terminals business, operating 20 port projects in 11 countries - Singapore, Belgium, Brunei, China, India, Italy, Japan, the Netherlands, Portugal, South Korea and Thailand.

The CHC will establish three separate operating companies for different business areas, which will enjoy a complete - federal, provincial and local - tax holiday for the first 20 years of the concession.

The materials and equipment that will be used in the construction and operation of the port will also be tax-free. Likewise, the bunker oil used in the port or sold to visiting ships will be free of duty. These privileges will remain throughout the concession period.

Under the agreement, the CHC will pay a fixed share of its revenues to the GPA. Pakistan will get a 9% share in income and revenue from the first day for the cargo operations and marine services. Three companies will work under the operator of Gwadar port. One company will manage the port area and cargo operation; the second will handle marine functions such as pilotage; and the third company will operate a "Free Trade Zone". Pakistan will get 15% of the revenue from the Free Trade Zone, where warehouses and other facilities will be constructed by the PSA.

The Free Trade Zone is aimed at developing facilities and businesses that are conducive to the growth of the port. The concession holder will develop at least 20% of required facilities within the zone. The remainder will be developed by either the concession holder or other investors. The exports of goods from the Free Trade Zone into Pakistan or vice versa are subject to normal import and export duties.

As well as being responsible for navigational safety and security, the GPA will develop and maintain the common port infrastructure including access channels, breakwaters and access roads.

The international management-consulting firm Arthur D Little, which has extensive global experience and expertise in port planning and negotiations with port and terminal concession holders, has acted as technical adviser to the GPA during the process.

Under the concession, two terminal areas, including a multipurpose terminal area, will be developed. The terminal areas will be expanded in an easterly direction up to a total length of 4.2km and cater for various types of cargo. The container terminal area is located along the western and northwestern coastline of the East Bay and is to be developed by the CHC.

Initially, the GPA expects foreign investment of $5 billion to $8 billion in the multipurpose terminal area; the cost of related equipment will be be $1 billion to $1.5 billion; the terminals will cost $2 billion to $4 billion; the cost of the Free Zone development is expected to be $1.5 billion to 2.5 billion; while the marine services and others will cost $500 million.

The GPA is to receive revenues from the CHC over the next 40 years estimated at between $17 billion and $31 billion. The revenue to be generated from containers and other cargo is projected at $10 billion to $18 billion; the Free Trade Zone is expected to generate $3 billion to $6 billion; and the terminals will generate an expected $4 billion to $8 billion during the period.

Some ports and shipping experts in Pakistan believe the revenue-sharing formula goes against the country's interests. They contend that the negotiators have overlooked the fact that if the port stopped operating there would be no revenue. According to the experts, the GPA or the national exchequer will bear the permanent costs of navigational-channel maintenance, dredging, security and firefighting.

The experts have also objected to leasing Gwadar port for a 40-year period. They say the longest acceptable long-term contract period is 25 years, mid-term 10-15 years and short-term five to seven years. Even in cases where a port is given over on a "build, operate and transfer" basis and operators bring in all the required equipment, they say the maximum lease period never exceeds 20-25 years.

It is expected that with Gwadar port operational, Pakistan will become a key player in the Persian Gulf region and serve as an energy corridor for Central Asia, South Asia and western China. With the exception of Chahbahar port in Iran, Gwadar will be the only free port between Dubai and Colombo providing container storage and warehousing facilities.

Gwadar has been designed to be operated as a hub port, and it aims to provide better investment incentive packages than regional ports such as the United Arab Emirates' Jebel Ali, Hong Kong, and Singapore. The port project aims to accommodate facilities that will help to develop Gwadar as an industrial city - privately owned warehouses and cold storage, private cargo-handling equipment, truck yards, and corporate infrastructure such as offices along the same lines as Jebel Ali, Hong Kong, Malaysia and Singapore.

As a free-trade zone and as a corridor to the Central Asian republics, Gwadar offers great opportunities for investors. Pakistan has already declared Gwadar a special economic zone and all imports coming through this zone will be exempted from customs duty and sales tax along with concessions on income tax. Pakistan has reportedly decided to give a seven-year tax exemption to industrial and commercial establishments in the Gwadar Special Economic Zone (GSEZ). This is expected to boost both domestic and foreign investment in the area, especially in such sectors as fish-processing, real estate, and tourism-related infrastructure and services.

Moreover, the Ministry of Ports and Shipping has recommended that the GSEZ be exempted from the Foreign Exchange Regulation Act of 1947 and the Protection of Economic Reforms Act of 1992. The Central Board of Revenue is of the view that no area in Pakistan could be exempted from these laws except as provided in the constitution, as in the case of the Federally Administered Tribal Areas and Provincially Administered Tribal Areas.

The challenge before Pakistan is to attract international investors by trumpeting its incentive packages for investment in Gwadar Free Trade Zone.

Pakistan plans to spend $7 billion in the next eight years to improve the country's road infrastructure, completing a network linking China and South Asia through Gwadar by 2014.

Because of its geo-strategic location, Gwadar has the potential to become a regional maritime hub. The 14.5-meter draft of the port will be able to accommodate up to "fifth-generation" ships, including Panamax and mother vessels.

Islamabad firmly believes that the Gwadar port is a key entry point for energy supplies for Central and South Asia, as well as western China. It will allow the expansion of oil trade in the region, as it provides the shortest possible route to landlocked, oil-rich Central Asian states

2007-12-13 11:46 PM

saj2go (Minar e Pakistan - Tomb of ..)
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Gwadar Map

Image Attachment: 01.jpg (2007-12-14 09:46 PM, 31.49 K)

2007-12-14 09:46 PM

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Gwadar Map

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2007-12-14 09:47 PM

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PNS Gwadar

The Gwadar port project will transform Pakistan's Navy into a force that can rival regional navies. The government of Pakistan has designated the port area as a "sensitive defense zone." The Gwadar port will rank among the world's largest deep-sea ports. The port provides China a strategic foothold in the Arabian Sea and the Indian Ocean.

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 completed in scheduled time in March 2005. With initiative and calculated risk, the Port received merchant ships since Jan 2003 and had 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.

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.

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

Image Attachment: 03.gif (2007-12-14 09:48 PM, 17.72 K)

2007-12-14 09:48 PM

saj2go (Minar e Pakistan - Tomb of ..)
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More about Gwadar

For hundred of years, Gwadar has been a sleepy fishing village, Alexander the great is said to have passed through here on his way back to Macedonia. Over the centuries, Gwadar saw many rulers come and go, and finally the ruler of Muscat annexed it in 1797. In 1958, Pakistan bought Gwadar from Mascat for Rs. 90 Million and made it a part of the province of Balochistan.

Gwadar is situated at the mouth of the strategic straits of Hormus about 660 Kms from Karachi and 72 km west from the Iranian border. Due to its strategic position as the southern extension of Pakistan into the Arabian Sea, Gwadar renders itself as an egress for transit traffic into the landlocked Central Asian Republics, Afghanistan and Iran. This geographic advantage endows Gwadar with the potential of becoming the commercial and economics hub of the region, much on the same format as port cities like Dubai and Hong Kong. Gwadar is destined to be the most important upcoming coastal town located on the interjection of the three most strategically and economically important regions of the world that are oil rich Middle East, heavily populated South Asia and the Central Asian Republics endowed with mineral wealth and an educated, highly skilled and disciplined workforce.

Gwadar has been declared as a duty free port and tax free zone by the Govt. of Pakistan.

The Deep Sea Port project with three multi purpose berths two container berths and one cargo terminal has been completed with a revised cost of 298 million US$, with the collaboration of China. The contract of Port handling has been given to Port of Singapore Authority (PSA) for 40 years lease and 23rd of March 2007 the port will functional.

Below is the view of Gwadar Beach

Image Attachment: 04 - A view of a Gwadar Beach.jpg (2007-12-14 09:57 PM, 30.06 K)

2007-12-14 09:57 PM

saj2go (Minar e Pakistan - Tomb of ..)
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Gwadar Port

Image Attachment: 06 - Part of Gwadar Port.jpg (2007-12-15 05:38 PM, 112.24 K)

2007-12-15 05:38 PM

saj2go (Minar e Pakistan - Tomb of ..)
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Gym Khana Gwadar

2007-12-15 05:40 PM

saj2go (Minar e Pakistan - Tomb of ..)
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Gym Khana Gwadar

Image Attachment: Gwadar Gym.jpg (2007-12-15 05:40 PM, 25.55 K)

2007-12-15 05:40 PM

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A 50 Billion Dollar Project

The director of Gwadar Development Authority (GDA), Mr. Ahmad Buksh Lahri, had said, couple of days before, that a 50 Billion dollar project to build Road and Railway link between Gwadar, Pakistan and Sinkiang, China is under consideration

He also said that the Airport is under-construction in Gwadar covering a land of 600 Acres and also the country's biggest Sports complex is almost complete.

He said that the construction of Road networks to link Gwadar Port with neibhouring countries is in its fast mode

2007-12-28 10:13 PM

saj2go (Minar e Pakistan - Tomb of ..)
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Gwadar Background

Gwadar district, with its 600 kilometres long coast line and un-irrigated tracts of Kulanch and Dasht valleys, has always been an important chapter of Makran’s history. The known history of Makran goes back to the time of prophet Dawood when people entombed themselves to avoid famine. The area is said to be possessed by Iranian King Kaus followed by Afrasiab of Turan and then by Kai Khusrau, again an Iranian. Then there is a long list of rulers, including Lehrasp, Gushtasp, Bahman, Huma and Darab, to the year 325 BC when Alexander the Great incidentally found the sea in this area on his way from India to Macedonia. Greek historian Arrian has mentioned the coast line as the country of Ichthyophagoi. At that time Nearchos, the admiral of Alexander, sailed along the coast and mentioned places named Kalmat, Gwadar, Pishukan and Chahbar. Afterwards, the area was ruled by Seleukos Nikator, one of Alexander’s generals, who lost it to Chandragupta in 303 BC. Then the tract of history is lost in darkness for centuries. An account of this area is found in the beginning of the sixteenth century when the Portuguese found their way to India and captured several places along the Makran coast. In 1581 they burnt “the rich and beautiful city of Pasni” and Gwadar. Although many invaders conquered the land, mostly the local rulers, including Hots, Rinds, Maliks, Buledais and Gichkis, exercised authority in the area as the conquerors had no intentions to stay there.

Two regimes of local rulers, of Buledais and Gichkis, are worth mentioning here. The Buledais gained power with the rise of the Zikri sect. These rulers are said to be connected with the rulers of Maskat and were called Buledais with reference to the valley of Buleda where they resided. The Buledais ruled the area for more than a century up to the year 1740. In the last years of their regime they embraced Islam. The Zikri folk joined hands with the Gichkis who also were Zikris by faith. The family feuds and internal dissension between Gichkis resulted in nine successful expeditions (either partially or fully) by Mir Nasir Khan I. It is said, that the main motive behind all these expeditions, made by Mir Nasir Khan I, was to eliminate the Zikris as he belonged to the (anti-Zikri) Muslim faith. These expeditions resulted in a division of revenues between the Khan and Gichkis.

In the last quarter of the eighteenth century, Gwadar and the surrounding country fell into the hands of Maskat. Saiad Said succeeded to the masnad of Muscat in 1783 and had a dispute with his brother Saiad Sultan. The latter appears to have fled to Makran and entered into communication with Nasir Khan who granted him the Kalat share of the revenues of Gwadar. Saiad Sultan lived at Gwadar for some time and eventually succeeded in usurping the Sultanate of Maskat in 1797. He died in 1804 and during his sons reign, the Buledai chief of Sarbaz, Mir Dosten, is said to have acquired temporary possession of Gwadar, but a force sent from Maskat regained it. Although it is generally understood that the right of sovereignty in Gwadar was transferred by the Khans of Kalat to Maskat in perpetuity, the Khans and natives of Gwadar have always denounced this perception. The un-irrigated tracts of Kulanch and Dasht valleys have always been connected with Kech.

The first Afghan war (1838-39) directed attention of the British to the area. Major Goldsmith visited the area in 1861 and an Assistant Political Agent was appointed in Gwadar in 1863. Both Pasni and Gwadar have been ports of call for the steamers of the British India Steam Navigation Company. The first ever telegraphic link to this area was made in 1863 when Gwadar was linked to Karachi. Telegraph offices were opened at Gwadar and Pasni. Later post offices were opened at Gwadar in 1894 and at Pasni in 1903. Ormara was linked telegraphically in 1904.

After the division of the Indian subcontinent into two sovereign states, areas except Gwadar and its surroundings, joined the Balochistan States Union, as part of Makran state. In early 1949 along with Kalat, Lasbela and Kharan. In October 1955, Makran was given the status of a district of former West Pakistan province after its accession to Pakistan. In 1958, Gwadar and its surrounding area was reverted back from Maskat to Pakistan and was made a tehsil of Makran district. On 1st July 1970, when one unit was dissolved and Balochistan gained the status of a province, Makran became one of its 8 districts. On 1st July 1977, Makran was declared a division and was divided into three districts, named Panjgur, Turbat (renamed Kech) and Gwadar. Gwadar was notified as a district on July 1, 1977 with its headquarters at Gwadar town.
A stone-built domed shrine of some saint at Gwadar is said to be centuries old. It may be the same one indicated in the Gazetteer of Balochistan. A square fort along with a tower is present amidst the Memon Muhallah of Gwadar. It is near the old bungalow of the Assistant Political Agent to the Governor General (therefore renowned as governor’s house). Moreover, the fort of Saiad Sultan is still in good condition and is being used as a police station

Image Attachment: gwa.jpg (2008-1-1 09:25 PM, 32.32 K)

2008-1-1 09:25 PM

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saj2go (Minar e Pakistan - Tomb of ..)
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Makran Coastal Highway

A view of Makran Coastal Highway and beautiful landscape on the way back from Gwadar

Image Attachment: Makran Coastal Highway.jpg (2008-1-1 09:27 PM, 161.78 K)

2008-1-1 09:27 PM

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changabula
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QUOTE:

Originally posted by saj2go at 2007-12-13 23:46
The challenge before Pakistan is to attract international investors by trumpeting its incentive packages for investment in Gwadar Free Trade Zone.

Pakistan plans to spend $7 billion in the next eight years to improve the country's road infrastructure, completing a network linking China and South Asia through Gwadar by 2014.

Because of its geo-strategic location, Gwadar has the potential to become a regional maritime hub. The 14.5-meter draft of the port will be able to accommodate up to "fifth-generation" ships, including Panamax and mother vessels.

Islamabad firmly believes that the Gwadar port is a key entry point for energy supplies for Central and South Asia, as well as western China. It will allow the expansion of oil trade in the region, as it provides the shortest possible route to landlocked, oil-rich Central Asian states

I hope this will improve Asian peoples living standards, saj.

As more and more people become better off then, maybe, there will be less troubles and conflicts.

2008-1-2 04:59 AM

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saj2go (Minar e Pakistan - Tomb of ..)
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QUOTE:

As more and more people become better off then, maybe, there will be less troubles and conflicts

You hit the nerve.

That will put huge impact over the living standards of Balochi ppl. As they are living in less than a half a dollar a day. But the projects will not only provide them oppertunities. But will FORCE them enhance their living standards.

In Balochistan alone, Nearly 3 Billion USD projects are under construction. Most of these projects are roads and Energy related, such as gas, Electricity etc.

Balochi will soon be going ahead from the rest of the country.

2008-1-2 05:21 PM

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crane
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It is good news to Balochi, it must be enhance their living standards.
And it is good opportunity to the machinery manufacturers and factories, especially for truck crane and other construction machine manufacturers.

2009-3-25 02:47 PM

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