Chinese company to manage Pakistan’s Gwadar Port
February 28, 2013 Category Logistics, Ports & sea transport
Pakistan transfered the management of the strategically located Gwadar port from Singapore to China. Because Singapore’s PSA International has not developed the deep-sea port on the Arabian Sea “as desired”, Pakistan’s government agreed to transfer the port’s management to Chinese Overseas Port Holdings. China provided about 75% of the initial USD250 million in funding for the construction of the port in Pakistan’s southwestern Baluchistan province. Gwadar port may provide supplies for Chinese merchant ships and escort vessels, as well as serving China’s energy interests in the Middle East. Chinese investment can also help Islamabad to better develop Baluchistan province. “The contract of operation of Gwadar Port was transferred from the Port of Singapore Authority to China Overseas Ports Holding Co,” Pakistani President Asif Ali Zardari announced. On January 30 the Pakistani government approved the transfer of Gwadar, currently a commercial failure cut off from the national road network. The Pakistanis pitched the deal as offering an energy and trade corridor to connect China to the Arabian Sea and the Strait of Hormuz, a gateway for a third of the world’s traded oil, overland through an expanded Karakoram Highway. Experts say it would cut thousands of kilometers off the distance which oil and gas imports from Africa and the Middle East have to travel to reach China. China paid about 75% of the initial USD250 million used to build the port but in 2007 PSA International won a 40-year operating lease.
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