Significance of the port:
1. It is a strategic warm-water deep sea port developed jointly by the Government of Pakistan and the Government of China at a cost of USD $248 was opened by the Pak Prez in 2007.
2. A major part of its work program is focused on the fast-track construction of roads, other infrastructure, and public building
3. However in 2013, officially the Gwadar port operations were handed over to China. Under the contract with China, the port will be further developed into a full-scale commercial port.
Importance to China
-- The Gov of Pak has also provided a naval base to China in Gwadar, and it is stated as an Economic Corridor to China.
-- It will enable China to more safely and reliably import oil. Currently, sixty percent of China’s oil must be transported by ship from the Persian Gulf to the only commercial port in China,(Shanghai) which takes around 2/3 months. Hence time loss and distance will be reduced. ** oil being imported from the Middle East, stored in refineries at Gwadar and sent to China via roads, pipelines or railway.
-- Vulnerability to piracy, bad weather, political rivals, and other risks will be minimized.
-- Chinese goods flowing in the opposite direction will find an easier, shorter and secure route to the Middle East, increasing trade
-- Pakistan-China strategic relationship will also reach new heights
-- Pakistan can earn much as outflow of goods from western China and Central Asia reaching Gwadar will pass through this overland trade route.
-- Competitive advantage over UAE in terms of trade and economy as it will be a gate to the Strait of Hormuz directly, by improving the exiting links to the land-locked Caspian Region.
-- Even if the strait of Malacca is blocked by the USA,9and under Indian influence) gwadar will be a good alternative for Chinese trade in the Indian Ocean and to Western Asia.
-- Gwadar can act as an alternative route to Indian Ocean or South China Sea routes.
-- China can keep Indian activities (naval activities) under surveillance around the Persian Gulf, the Gulf of Aden, Central Asia and South Asia
***Other ports build by China of Strategic importance:
-- Beijing has developed Hambantota port in Sri Lanka and built a container port facility in Chittagong in Bangladesh. In Myanmar, Beijing has built roads, dams and pipelines, and is looking to the ports of Kyaukpyu and Sittwe, regardless of the fact that the latter is being built by India. Beijing intends to lay a pipeline from Kyaukpyu to Yunnan province
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