On 26 Aug 2019, CG together with DCG Apipan Cheecharoen and CG’s Secretary Mubeen Ansari had a meeting with Mr. Aasim Nawaz Tiwana, Director General (DG) of Gwadar Port Authority atthe office of Gwadar Port Authority, Ministry of Maritime Affairs, Gwadar.

Overview

          CG informed DG the purpose of his 1^sttime visit to Gwadar to see the development of the Gwadar port as a main part of China-Pakistan Economic Corridor (CPEC). It took CG 9 months waiting for Non-Objection Certificate (NOC) allowing him to visit the Port. 

Contents

          DG presented the Thai delegation with power point presentation starting with the strategic importance of Gwadar port.It is third important deep-sea port of Pakistan after Karachi and Qasim ports. It is located at cross junction of international sea shipping and oil trade routes. The Port connects three regions, i.e. Central Asia, South Asia and Middle East. It would open new job opportunities and help in the development of Baluchistan. The port will attract foreign investment and tourism. It would provide foreign reserves and free trade zones and special economic zones (SEZ) that would help in the economic prosperity of Baluchistan and Pakistan. 

          The presentation shows how Gwadar Port links with CPEC.As part of CPEC, and by extension, that of the Silk Route Initiative, Gwadar is a hub of connectivity for the Corridor, and an indispensable interchange for the Silk Route. Through its deep-sea port, Gwadar has helped China and Pakistan realize the goal of a 21st Century Maritime Silk Route, which will benefit not only China and Pakistan, but also Central Asia by becoming the region’s key entrepôt that will cater to the local populationby improving their livelihoods. CPEC will physically connect China to the markets of Asia, Europe and beyond. [Almost 80% of China’s oil is currently transported from the Straits of Malacca (the distance is almost 16,000 km and takes 2-3 months), with Gwadar becoming operational, the distance would be reduced to less than 5,000 km.]

          The presentation shows the 12,131 Km. national highways from Khunjrab in the North to Gwadar in the South, which passed through 9 Special Economic Zones (5 in Balochistan). Gwadar is set to be a part of Special Economic Zone, which stated its vision read as“A safe, prosperous, environment and livable smart port city: an outstanding Special Economic Zone city in Pakistan”,viewing its 5 advantages: 1) geographical location 2) CPEC 3) energy channels 4) port development conditions and 5) fishery resources.

           Gwadar projected itself to the next 30 years from now as below:

Gwadar planned to develop industries in the East and residential areas in the West. Below is the forecasting of future scenarios.

           Right now there are 150 Chinese in Gwadar and 8 registered enterprises under Gwadar Free Zone Phase 1: Linyi Overseas Mall (products display and storage), Yufei Marine Services & Technology (cold storage and fishery processing), Tianjin Cereal & Oil Trade Co. (Palm oil, canola oil, soybean oil), Ningbo Huileng Recycling Resources Tech Co. (Metal recycling), Zhejiang Litchi stainless steel tube factory (steel pipe factory), Delight Grain & Oil Trade Co. (edible oil processing), Pakistan JOLTA Tech Co. (Electric bicycles and motorcycles), and Harmony Logistics (Tianjin) Co. Ltd. (Furniture).

          The construction of Eastbay expressway is underway and 35% work is completed. Eastbay expressway will be complete next year, which will connect Gwadar Port with hinterland through the existing highway. In addition, on 29 March 2019 agreement on Pak-China vocational & technical training institute was signed during Gwadar EXPO 2019.

Proposal

           DG proposed Thailand to 1) invest in the areas that Thailand is good at especially fishery, tourism and precious stone industry, 2) take part in Port-to-Port Agreement or sister-port MoU/Agreement between port in Thailand and Gwadar, 3) bring Thai delegation to discuss and explore further opportunities that Gwadar could offer. Best time to visit Gwadar is between September and March. 

           Incentives that Gwadar Fee Zone provides to investors are 1) 23 years complete tax holiday from all federal, provincial and local taxes 2) 100% exemption from import duties on materials and equipment 3)100% foreign ownership for foreign investors 4) One window facility service 5) World class infrastructure and security arrangement 6) 99 years lease for sub-lessee/investors. 

Other activities

          DG invited CG and his team to meet with Mr. Zhang Baozhong, Chairman and CEO of China Overseas Ports Holding Company Ltd. who oversees all the projects within the Port Free Zone, which started since 2013.  Mr. Zhang Baozhong was formerly an officer in the Department of International Economic Affairs, Ministry of Foreign Affairs of the PRC, handpicked to monitor the CPEC and coordinate with the local authorities. 

         CG and his delegates received a warm welcome by Mr. Iqbal Reimoo, Pakistani businessman who export fish to Thailand.  Mr. Iqbal Reimoo of M/S Karim Impex brought the Thai team to tour the office and Gwadar Harbor. 

         Although Gwadar has potential with deep sea port (45-meter deep) and 30,000+ metric ton handling capacity per day, it takes some times by 2025 or so to be able to utilize itself into full swing.  

         Apart from the presentation, the CG delegates toured around the shore on a tugboat and visited fish market, fish factory (packing fish for export) and local boat-making area. At the end of the tour, CG expressed his wish to Pakistan authority to come to Gwadar again during Gwadar EXPO 2020.