Gwadar - emergence of new world trade hub

14 Oct, 2006

The Makran region surrounding Gwadar was occupied by unknown Bronze age people who settled in the few oases. It later became the Gedrosia region of the Achaemenid Persian Empire. The region is believed to have been conquered by the founder of the Persian Empire, Cyrus the Great.
The capital of the satrapy Gedrosia was Pura, thought to have been located near modern Bampur, in modern Iranian Balochistan. During the homeward march of Alexander the Great, his admiral nearchus led a fleet along the modern Makran Coast and recorded that the area was dry and mountainous, inhabited by the Lchthyophagoi or Fish eaters - a Greek rendering of the ancient Persian phrase Mahi Khoran, which has the modern word Makran.
After the collapse of Alexander's empire, the area was ruled by Seleucus Nicator, one of the Alexander's generals, but the region came under local rule about 303 BC. For several centuries, the region remained at the sidelines of history, until the Muslim Arab Army under Mohammed Bin Qasim captured the town of Gwadar in 711 AD. In the following centuries the area was contested between various Iranian and Indian based powers including the Mughals and the Safavids.
Portuguese explorers captured and sacked Gwadar in the last 16th century. This was followed by centuries of local rule by various Baloch tribes. In 1783 Khan of Kalat granted Gwadar to Taimur Sultan, the defeated ruler of Muscat. When Taimour recaptured Muscat, he continued to rule Gwadar by appointing a wali or Governor.
The new Governor ordered to conquer the nearby coastal town of Chah Bhar (in modern Iran). Gwadar fort was built during Omani rule, whilst telegraph lines were extended into Gwadar courtesy of the British. In 1958, the Gwadar enclave was transferred to Pakistan and was made part of Balochistan province. Pakistan is developing country and has been facing financial and economical crisis for the last many decades.
To come acrosss from crisis and to gear up the development government has been initiated Mega Projects and takes revolutionary steps in country's economic sectors and policies. Gwadar deep Sea Port project is one of them. How much Gwadar Port plays his role in development of country's economic growth? We can analyse just one example that a Pakistan will earn 60 billion dollar per year just on transaction of trade after the complete operation of Gwadar Port that will play a vital role in development and uplift the country's economy.
Gwadar is located on the south-western 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 recourse-rich Central Asia.
The Government of Pakistan has initiated several projects, with majority financial and technical assistance from China, to develop Gwadar's strategic location as a goods transit and trade point. The primary project is the construction of a deep-sea port at Gwadar to enable high-volume cargo movement to and from the landlocked Central Asian states.
The new port will also encompass conversion facilities to allow for the movement of natural gas as a part of plans for a termination point for the Turkemenistan-Afghanistan-Pakistan natural gas pipeline. The secondary project is a coastal highway connecting Gwadar to Karachi, whose $200 million cost will be completely financed by the Chinese.
Gwadar will serve as a port of entry for oil and gas to be transported by land to the western regions of China.The significance of Gwadar is great to both Pakistan and China. Pakistan will be able to have a strategic depth south-west from its naval base in Karachi that has long been vulnerable to blockade by the Indian Navy. There have been many reports that China, with permission from Pakistan, will also be able to dock naval ships in or around Gwadar. This has caused much concern by both the United States and India as both of these nations do not wish to see a Chinese naval presence in the Indian Ocean.
Gwadar deep sea Port is a major step towards country's economic growth and betterment of people of Balochistan. It's also too important, because it's situated on world three key points, Middle East, South Asia and Central Asian States. The Transitional Gas Pipe Line plan between Pakistan, Iran, India and Turkmenistan and Afghanistan will also pass through this route.
Gwadar port can also serve as storage of oil and Gas that will use for industry. After its operation it will serve as mother port in the region to import crude oil, GTL/CNG processing and shipping to Middle East, China, East and Northern American markets. China has said it will help build a 60,000 barrels per day oil refinery at Gwadar. India wants Balochistan as a transit point for the $7 billion Iran-Pakistan-India natural gas pipeline.
Gwadar Beech can attract thousands tourists every year and this will help to promote tourism in Pakistan. Due to its Geo-strategic location Gwadar has easy excess to central Asian States. The Government takes extra ordinary steps to develop Gwadar as world moderate city; it offers great opportunities for local and foreign investors. Real Estate developers taking keen interest in Gwadar to develop high rise commercial projects and housing schemes like Dubai. Gwadar is fortunate because of its natural resources and safe trade route. If Pakistan adopts all-comprising business competition policy, Gwadar Port will serve at least 20 countries in ware housing, transshipment and industrial facilities for trade.
Gwadar is a safe Port of Pakistan; due to its importance Government of Pakistan initiated several steps with the help of China to make Gwadar Deep Sea Port as the world modern Port and Gwadar city as world moderate city.
Pakistan Government of Pakistan allocated 20.3 million dollar in current fiscal budget 2006-07. The total cost of project may go up to 2.2 billion dollars Government of Pakistan also declares Gwadar Port Duty Free and Economic Free Zone.
The first phase of Gwadar Port has completed on the amount of 300 million dollar and will operational at the end of this year. Beijing is also investing billions of dollars in western China a grand 5-year plan to develop it, and Gawadar is a necessarily part of that 5 year plan. Pakistan has invested more than an amount of 2 Billion dollars to upgrade Gwadar and completion of related development program in the last two years. Just Provincial Government of Balochistan is spending 4.5 billion Rupees in Gwadar.
Gwadar by virtue of its finest location, development projects, recreation programmes and Government's special attention, will soon turn into a city which will be comparable with cities like Singapore, Hong Kong and Dubai and will be an economic hub and trade centre in the region in the days ahead.

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