KARACHI, Nov 25: The Gwadar deep water port project is yet another milestone of the glorious and time-tested friendship between China and Pakistan. The port is expected to start functioning by the end of next month as evaluation process of port operators is in final stages.

Pakistan and China signed the deal to build the $248-million (revised $298 million) deep sea port on the Arabian Sea coast in Southern Balochistan in 2002.

Chinese vice-premier Wa Banggao laid the foundation stone for Gwadar port in March 2002. The first phase of the project was to be completed by March 2005, for which China provided $200 million soft loans and grants and the balance was made available by the government of Pakistan.

After the first Gulf war in 1990, the Asian Development Bank (ADB) strongly felt that some deep water port are baldy needed just out side the Straits of Hormuz from where around 60 per cent of world oil supplies pass. As a result of this hunt Gwadar was selected for being strategically located at the opposite end of the Gulf of Oman but remained on the main shipping route.

The first phase of Gwadar port has been built with the assistance of a public sector Chinese company at a revised cost of $298 million. It included three multipurpose berths (602 metre quay length), one service berth (100 metre length), 4.35km navigable channel which is being currently deepened to 16 metre. Besides, roads, plinths and transit shed, operational craft and equipment, including navigational aids and shore-based port buildings and allied facilities, have been developed.

The government has also finalised arrangements to undertake the construction of second phase of the port in March 2005 at an estimated cost of $865 million. The completion of second phase will also help meet strategic needs and standby facility to Port Qasim and the Karachi Port in case of emergencies.

The construction of second phase will be completed on the basis of build operate and transfer (BOT). However, if the private sector did not respond favourably, the public sector financing will be required to develop the second phase of the port.The port will have far reaching geo-political implications in the region as will open up new vistas and could also change shipping activity to a greater extent. Pakistan is also interested in developing Gwadar not only as a trans-shipment port, but also as an energy port by establishing refineries, building storage capacity (farms) and laying pipeline ensuring secure and reliable supplies to western China and other landlocked countries of the region.

Gwadar could emerge as a key shipping point, bringing Pakistan a much-needed income, and when combined with the surrounding areas could become a trade hub, once road and rail links connect it to the rest of the country, including Afghanistan and Central Asia.

A road from Gwadar to Saindak, which is presently under construction, is the shortest route between Central Asia and the sea. It will provide landlocked Afghanistan and Central Asian states with access to the sea. Oil and gas reserves and other natural resources from these countries could be shipped to global markets through Gwadar port.

Looking at the future prospects the government is also keen to give Gwadar a status of free trade zone and an export processing zone. It will not only give boost to local business and trading activity but will also open up vast employment opportunities for the people of the region, particularly from hinterland which have huge human resource surpluses.

President Pervez Musharraf’s last visit to Beijing reflects the determination of both governments to promote comprehensive cooperation in the field of energy, including nuclear power, as well as realise the concept of building an energy corridor between Pakistan and China.

The current visit of President Hu Jintao is a step forward in achieving these common goals for both the countries. Both the sides have reaffirmed their pledge to further strengthen ties in defence, energy, economic and trade sectors and signed a free trade agreement. Besides, the two sides finalized a five-year joint development programme and signed seven important accords and will set up a joint investment company.

Gwadar Port Implementation Authority (GPIA) Chairman Captain Anwar Shah told Dawn that the success story of the port could well be judged from the fact that leading port operators had shown keen interest in running the port. He said the government had asked these operators to submit their bids by December 4, 2006.

Mr Shah disclosed that within days of receiving bids, the summary would be put before the GPIA board for its approval and thereafter will be forwarded to the ministry of ports and shipping to get ECC approval. He said that first phase of the port was complete and was ready to be commissioned as soon as the port operator was selected as per the laid down terms and conditions in the bid document.