Gwadar Port Authority, Chinese company reach new investment deal
As the maritime affairs ministry pointed out on Tuesday, the Gwadar Port Authority (GPA) has struck an agreement with a Chinese firm to enhance port investment, which, in turn, will scale port investment.
Pakistan has recently intensified plans for the commercialisation of the under-construction Gwadar Port, which has been in limbo for over a decade. The government, intending to enhance trade, in January sought proposals from the private sector to make use of the port for cargo shipping.
The ministry of maritime affairs stated in the press release, “China’s Xinning Enterprise have signed a Letter of Intent (LoI) with Gwadar Port Authority to stimulate major industrial and commercial investments at Gwadar Port and its Free Zone, underscoring Gwadar’s growing role as a key regional hub for trade and economic activity.”
The ministry provided further details disclosing that the LoI was signed on behalf of Xinning Enterprise by Yi Jiang and by the maritime affairs ministry’s additional secretary Umer Zaffar Shaikh. GPA Chairman Noorul Haq Baloch attended the event virtually, “These ventures include developing Gwadar Port as a regional transhipment centre, launching new industrial projects, optimising existing facilities within the Gwadar Free Zone, and relocating industries” as stated in the press release.
In the meeting with the Chinese business delegation, the minister for maritime affairs discussed with them the further enhancement of the Gwadar Port.
In acknowledging the partnership, Chaudhry noted that it serves as a “significant milestone in strengthening Gwadar’s strategic importance” and further noted that Xinning Enterprise “has the ability to improve the port’s capacity and foreign investment, and to aid in the developmental economics of the area as a whole.”
They quoted, “Both parties undertook to observe the laws and regulations of Pakistan pertaining to the operations of the port and Free Zone of Gwadar.” “They also promised, to the best of their ability, to further Pakistan’s investment objectives, operational details, and mechanisms for the engagements and cooperation.”
Chaudhry reiterated “the government’s ideal schemes to make Gwadar a global gateway to the seas and an industrial militaristic hub” and added that the ministry reiterated further such joint efforts that quickly advance Pakistan’s maritime and economic interests.
By the first of July, the Ministry of Maritime Affairs had released a bold proposal to enhance the operational capacity of Gwadar Port by adding new shipping lines and initiating a ferry line between Pakistan and the Gulf Cooperation Council nations, which was quickly followed by suggestions for ferry service routes from five different private companies.
This is also expected to create a new link, especially adding to the route for passengers and cargo for the expatriate and business communities and cross border traders.
