Prime Minister Shaukat Aziz on Tuesday hinted that a development revolution is in the offing in Gwadar, which includes setting up of series of new industries after the start of Gwadar Port operation.
Speaking at the signing ceremony of the 'Concession Agreement' between Gwadar Port Authority (GPA) and Port of Singapore Authority (SPA) International-AKD Group here.
After Gwadar Port, the government has approved another big project for this city (Gwadar), the master plan of Gwadar international airport and directed the Civil Aviation Authority (CAA) to start its construction, he said, adding that the new airport would attract wide-bodied aircraft for passengers traffic as well as provide base for air freight cargoes.
He said: "A development revolution is coming in Gwadar after the port becomes operational with its allied industries. We have also another industrial areas in the city (Gwadar)."
The Gwadar Port is located on the edge of world's largest hydrocarbon reserves and capable to become energy corridor and we are heading towards it, he added.
Shaukat Aziz said, the Gwadar Port would accommodate mother and panamax vessels in its proximity and encourage feeder services for Middle Eastern ports like Dubai and Salalah ports due to its low port charges.
The Gwadar Port would also serve as a support port for many Middle Eastern ports, especially Dubai port, he said, adding that first vessel is expected to arrive in the fourth week of March which would be a great achievement for the present government.
He said, the government acquired a land area of 500 acres from Pakistan Navy for cargo handling of Gwadar Port. The construction of coastal highway has given a boost to the Gwadar and other coastal cities and would definitely help the third port (Gwadar) of the country, Shaukat said, adding that now we are concentrating on the north part of Gwadar to build a communication link with other parts of the province, especially Central Asian countries.
He said: "The government is committed to protect the heritage of Gwadar city as during my journey, I witnessed lots of fishing boats were in process of construction as in the past such activities were limited." He lauded the co-operation made by the former Chinese Premier for the development, construction and providing funds for Gwadar Port.
Earlier, Aslam Hayat, acting chairman Gwadar Port Implementation Authority (GPIA) and Commodore Muneer Wahid, acting chairman Gwadar Port Authority (GPA) from PSA side, Eddy Teh, the Group Chief Executive Officer of Port of Singapore Authority (PSA) International and Khurram Abbas Chairman PSA Gwadar inked the concession agreement in presence of Prime Minister Shaukat Aziz.
The Group CEO of PSA International, Eddy Teh said the Gwadar Port has now linked with the world's largest and deepest ports that was operated by the PSA group.
"The PSA to work link this port (Gwadar) to facilitate trade and become part of important chain of ports internationally," he added. He said the PSA and members of GPIA work hard and round-the-clock for achieving this agreement.
According to project detail, the agreement has duration of 40 years. Besides, it regulates the rights and obligations of both parties. The GPA will receive revenues (not profit) from the PSA over a period of 40 years. The investment, revenues and income received from Gwadar Port's entire operations are between $23.6 billion to $42.2 billion.
The Concession-Holder Company (CHC) will establish separate three operating companies for each of the above business areas. Where appropriate, the CHC can co-operate with strategic partners at the level of the operating companies.
The GPA expects $5 billion to $8 billion foreign investment in the area of Multi-purpose (MP) terminal and related equipment's to cost PSA at Gwadar Port which would be $1 billion to $1.5 billion; container terminal and others $2billion to $4 billion; the cost of Free Zone development $1.5 billion to 2.5 billion; while the marine services and others would cost $0.5 billion.
The GPA to receive revenues from CHC over next 40 years which is expected between $17 billion and $31 billion. The expected revenues generated from containers and others would be $10 billion to $18 billion; Free Zone to generate $3 billion to $6 billion; while the MP terminal and others would produce $4 billion to $8 billion revenues during the period.
The GPA would receive income from PSA over the period of four decades between $1.6 billion and $3.2 billion, in which the CHC of containers and others would give $0.9 billion to $1.6 billion (9 percent of CHC revenue); Free Zone $0.45 billion to $0.9 billion (15 percent of CHC revenue); and the MP terminal and others would provide $0.36 billion to $0.72 billion (9 percent of CHC revenues).
The Port-CHC manages terminal and cargo operation. The CHC will take over the marketing and operations of the current terminal area, which provides 602 metres of berthing and will invest in and expand berthing space in line with demand during the concession period up to a total maximum of berthing space of 14 berths at an area of 4.2 km.
These facilities will cater for container cargo and miscellaneous cargo. The Marine CHC services consist of piloting, tugging, mooring, and vessel traffic control and anchorage management and related marine services, such as bunkering facilities. The CHC shall expand the fleet of pilot and tugging vessels in line with demand.
The AKD Group would have majority CHC and operate the 'Free Zone CHC' and shall develop and operate this area and market its facilities and services. The area set aside within this concession for Free Zone activities related to the port has a size of approximately 923 hectares.