Gwadar Baby!

Hi!
Nice to see you again. Last time I was writing about rising importance of Chinese project named "New Silk Route" and why such huge initiatives take place.

You may find it here: https://steemit.com/trade/@deerdance/will-new-silk-route-change-the-world-we-know

Today I would like to focus more on particular details of already described idea. CPEC - China-Pakistan Economic Corridor and it's main point - Gwadar Port. Enjoy!

1. Why Gwadar? Why Pakistan?
Mostly New Silk Route concentrates on Europe connections, however there are being developed as well projects within Asia and Oceania region. One of them is Economic Corridor in Pakistan, which should join Kashgar in China with Pakistani port of Gwadar.
If you have read my previous article, you know that China is surrounded by American navy forces, what is extremely dangerous for its economical safety. Hot point in a region is Strait of Malacca through which to China oil from Persian Gulf is being transported. Currently transport of oil takes at average 45 days. When you take a look at planned investment, you can easily see that route of transport is much shorter. By almost 11 000 kilometer to be accurate. It is estimated that through CPEC whole transport to China will take only 10 days, a little bit longer to eastern cities. Difference is huge, allows to operate faster, but also will decrease oil prices to Chinese companies, reducing their costs.
Another aspect is international position of Pakistan. Country is not highly dependent from United States and has really great forecast regarding growth per capita.

2. CPEC
First news about China-Pakistan economic cooperation are dated back to times just after II WW, when Karakorum Highway project started. Idea of CPEC was refreshed 1998 when Gwadar port appeared on negotiation table. Since then Chinese government invests tons of dollars into Pakistan infrastructure and energetic systems. When agreement was announced in 2015 its worth was estimated on more than 45 billion USD. Most of it, around 28 billions, are "Early Harvest" investments, realized before end of recent year. What is being developed? Highways, port infrastructure, railways, solar power, logistics centers, signaling infrastructure and future plans are focused on hydro power sources.

3. Gwadar port
Purpose of developing Gwadar is simple - to guarantee faster, safer and self-dependent oil transportation to China. How the investment is going? Main operator in the city, responsible for construction is China Overseas Port Holding Company. Work is divided into two phases. First one is already done, took place from 2002 to 2006. Second phase is ongoing and will bring for example: new berths, terminals expressway from port to interior, new airport. Regarding future plans, Chinese operator plans to increase depth of channel to 20 meters, handle at least 400 million tons of cargo yearly and build new berths - 150 additional ones till 2045.

4. Is Pakistan a winner here?
I will list few numbers below and answer to the above question is left for your judgement:

• $757 million investment in Gwadar done by China, where Pakistan pays 0% interest rates,
• $100 million investment in Gwadar 300-bed hospital,
• $230 million investment in Gwadar airport, done in grants which Pakistan will not be asked to repay,
• Special Economic Zone close to Gwadar port, loaned to China for 43 years, which will need to employ 40 000 people at least,
• New infrastructure, energy systems, hotels,
• International position of Pakistan is strengthened, Gwadar can be a competition to other ports of region with possibility to transport products not only to China .

5. Future
Gwadar port may be key player in Chinese energetic security program. It will as well strengthen position of Pakistan on international scene, what can cause that USA will have to cooperate closer with one of their deadly enemies - Iran for example. However in my opinion more probable is situation when Iran will join newly created economic network. As an example I can give here Chabahar port investment (India & Iran), which may support Gwadar or be a competitor to it. Time will tell.
Gwadar port development is risky for Russia as well, while it creates good alternative for natural gas transportation and other goods around the region.
What is more, Gwadar will be a point in India - Pakistan relations as well. This good news in my opinion since China business here will be to remove tensions between those two nuclear countries.
For sure we will hear about Gwadar in the future!
Stay tuned!
BR
Michal