Gilani lauds Chinese cooperation for developing Gwadar Port

KARACHI, Feb 8 (APP):  Prime Minister Syed Yusuf Raza Gilani has lauded Chinese cooperation in the development of Gwadar Port.He was speaking as chief guest at the induction ceremony of PNS Shamsheer at the Naval Dockyard here on Monday.The keel of the vessel was laid in July 2008 in Hudong Shipyard of China.
The Prime minister also admired the Chinese cooperation in the development of Gwadar Deep Sea Port which has significantly contributed towards strengthening the maritime infrastructure in Pakistan.
Prime Minister Gilani said the port has opened new avenues of growth and prosperity in Balochistan. The port would serve as a vital link in developing over-land trade route from Makran coast to the western region of China and the Central Asian republics, he added.
The Prime Minister said  he was aware that the Pakistan Navy was also focusing on the development of coastal areas through its projects like development of Jinnah Naval Base and other support establishments.
He said the Navy’s lead role in contributing towards maritime awareness among  the people of Pakistan was another positive undertaking that would accrue long term benefits for the nation.
Gilani reiterated the government’s commitments towards development of the maritime sector and emphasised upon the Navy not only to defend the sea frontiers but also ensure safe conduct of maritime activities during peace time.

APP

I am glad Pakistan Govt isstarting to look after their people's interest. They should always try to look after the interest of common people, work for them to bring propsperity and good life and all the grieveances of people will turn to helping Govt. For this to happen everyone has to put country first and hold officials responsible for not letting the development work happen in Gwadar by causing delays on projects ranging from roads to water to gas to electricity. Prime Minister and CM of Balochistan should make this a pripority agenda so the people who want to invest at Gwadar can do it. Like I am eager to setup fish processing plants with latest technology for export purposes but without  water and having to face load shedding in Inustrail area no one in their right mind will invest till these issues are resolved quickly. We as ex patriates can act as a bridge to helping in developing country's infrastructure so Pakistan can compete economically in the world.

The amount of goods shipping needed for NATO should be a good enough economical reason to light the fire underneath the project engineers as well as construction mangement company by NHA to get them to propose expedited schedule to complete the projects. I cannot believe that another 5 years will be needed to complete the projects. NHA should look at legal options to enforce the contracts. May be use design build contractors to complete the projects on time and impose hefty fines for each day of dely in the project and reward for each day of early completion of the project. As far as the excuse of law and order situation someone at NHA really needs to implement security review to provide no excuse to not complete the projects on time. If these projects would have been delayed for so long in USA the contractor, consultant and people incharge would have been replaced by now because pripority is economical growth and how important these project are viewed by the agencies involved for the country. Pakistan cannot achieve its economical potetial unless someone who has vision for grand scheme of things is put incharge. Pakistan has such huge educated smart people we need to figure out how we utilize this potential to make pakistan an economical giant.

We hear India is building this dam and this roadway and everyone should know why because for India's survival in this world will be if you become an economic giant not but creating problems for country to even struggle to provide basic needs for the citizens of the country.

Zardari books fast train to TurkeyBy Syed Fazl-e-Haider

KARACHI, Pakistan - Turkey and Pakistan agreed this week to undertake a US$20 billion project to upgrade a railway link from Islamabad to Istanbul, basically to transport cargo more efficiently between the two countries and ultimately on to Europe.

During a meeting in Istanbul, visiting President Asif Ali Zardari of Pakistan and his Turkish counterpart, Abdullah Gul, discussed the upgrade of the rail route. Three Turkish companies have shown interest in the five-year project that envisages cutting travel time between Islamabad and Istanbul, via Tehran, from the current 11 days or more to three to four days.

The move follows an agreement in November to increase the level

of bilateral trade between the two countries to $2 billion from the existing $741 million in a couple of years. Analysts believe that the 6,566 kilometer rail project from Islamabad to Istanbul, with 1,990km of track in Pakistan, 2,570km in Iran and 2,006km in Turkey, will open new avenues of bilateral cooperation as well as strengthening trade and economic ties.

Zardari was on a four-day visit of Turkey, ending on Wednesday, to attend a trilateral summit with Afghan President Hamid Karzai and the Istanbul summit on Afghanistan, involving Afghanistan and its six immediate neighbors. He also held discussions on bilateral matters with Turkish leaders. Zardari floated the Islamabad-Istanbul cargo train idea last year when an experimental train was run on the route on his initiative on August 14.

"The cargo rail link could provide a speedier option to expand economic ties between the two countries as well as with Iran," Associated Press of Pakistan reported Zardari as saying. "This rail link will strengthen Pakistan's economy as well as people-to-people ties not only with brotherly Muslim countries but also onwards to Europe."

The existing track between the two countries requires considerable improvement if it is to be used for timely cargo services. The August trial trip of a container train service from Islamabad reached Istanbul in two weeks, traveling from Islamabad through the southwestern Pakistani province of Balochistan then on to Iran. Islamabad is also looking to start a passenger train service on the route.

The two sides have worked to negotiate a preferential trading agreement, aimed to increase trade and investments, especially in transport, telecommunications, manufacturing, tourism and other industries. While Pakistan exports rice, leather, textiles and fabric sports goods, and medical equipment, Turkey exports wheat, diesel, lentils, chemicals, transport vehicles, machinery and energy products to Pakistan.

Many Turkish private firms have invested significantly in industrial and construction projects, developing highways, pipelines and canals in Pakistan.

During a two-day visit to Pakistan in October, Turkish Prime Minister Recep Tayyip Erdogan vowed to upgrade his country's strategic partnership with Pakistan and strengthen economic cooperation. The two nations signed a joint declaration to strengthen relations in trade, investment, agriculture, industry, culture, education and defense and agreed to increase their trade from $741 million a year to $2 billion in a couple of years.

Erdogan, who was accompanied by an 80-member delegation of business executives, termed the present trade volume insignificant and committed the Turkish Cooperation and Development Agency to boost bilateral trade.

In November, the countries agreed to move forward the timeline for signing a preferential trade agreement and abolish the requirement for visas for businessmen traveling between the two countries.

Zardari reportedly impressed on the business community of Turkey not only the importance of enhancing trade relations with Pakistan but also the lucrative investment opportunities in his country.

Islamabad needs foreign investment to bolster its strife-torn economy. Foreign direct investment (FDI) into the country dropped 57%, to US$1.01 billion, in the six months to June compared with a year earlier, according to the central bank. That continued a decline in FDI to $3.72 billion in the fiscal year that ended in June from $5.4 billion 12 months earlier.

Turkey and Pakistan are founding members of the Economic Cooperation Organization (ECO), the only forum with representation of all the countries bordering Afghanistan. Analysts stress the need to make efforts to establish inter-regional oil and gas pipelines as well as power grids from energy-rich to energy-deficient states. Free trade is central to regional economic integration as it can unlock latent energies and transform socio-economic landscapes.

Pakistan has served as a route for international trade for ECO countries. During the Cold War period and after the collapse of the Soviet Union in the early 1990s, this route was disrupted by political instability and the security crises in Afghanistan. The prevailing situation in Afghanistan hinders any revival of economic, trade and cultural relations between the newly independent states in Central Asia and other Asian countries.

The ECO can only become a coherent organization if it creates inter-dependencies and synergies, especially in areas of energy, transportation and trade. Completion of the Gwadar port in Balochistan province in Pakistan will help to revive transit facilities and trade links among the member countries and it offers tremendous prospects for regional trade, as it lies outside traditional areas of conflict. Pakistan has repeatedly offered ECO member countries port and transit facilities at Gwadar to establish trade links with the world that would benefit the entire region. (The members of the ECO are Afghanistan, Azerbaijan, Iran, Kazakhstan, Kyrgyzstan, Pakistan, Tajikistan, Turkey, Turkmenistan and Uzbekistan.)
Syed Fazl-e-Haider (www.syedfazlehaider.com) is a development analyst in Pakistan. He is the author of many books, including The Economic Development of Balochistan (2004). He can be contacted at sfazlehaider05@yahoo.com

http://www.atimes.com/atimes/South_Asia/LA29Df05.html

China may replace India in IPI project: Mottaki

06 February 2010 

Iranian foreign minister claimed that Tehran was ready to start the "peace pipeline" project anytime. All the details between Pakistan and Iran in this regard had already been finalized. India still needed some time but "we can even start the project without India," Mottaki noted.

He blamed the U.S. for trying to sabotage the gas pipeline project and said, "Growing relations between U.S. and India should not affect the relations of India with other countries of the region."

He was confident that Pakistan would not hesitate to start the gas pipeline project despite the U.S. pressure.

"We must not allow any third country to interfere in the bilateral relations of Iran and Pakistan," Mottaki commented.

The IPI project was conceived in 1995 and after almost 13 years India finally decided to quit the project in 2008.

The proposed pipeline is 2,775 km long and dubbed as the Peace Pipeline, connecting Iran, Pakistan and India.

The negotiations have been going on for many years involving Iran, Pakistan and India. Iran's enormous gas reserves are ideally suited to supply massive amounts of gas to both Pakistan and India on long-term basis, thus helping ease the energy requirements of the two giant developing nations.

India was also a part of the proposed Iran-Pakistan-India (IPI) pipeline, but walked out of the 2,775 km pipeline project due mainly to the hefty transit fee demanded by Islamabad.

Also the United States as an outside player, fearing further economic developments of India and Pakistan, has been working round the clock by using all possible means to prevent the deal to become a reality.

© Tehran Times 2010

http://www.zawya.com/oilgas/default.cfm?cc

Corruption in purchase of Gwadar navigation channel buoys alleged
TAHIR AMIN

Funds paucity delays Balochistan road projects

By: Javaid-ur-rahman | Published: February 05, 2010

ISLAMABAD – Owing to paucity of funds and adverse law and order situation in Balochistan, most of the National Highway Authority (NHA) projects including roads linking the Gwadar Port with other areas, which are considered crucial for making it a hub for transit trade, are getting delayed.
Among the 19 projects including M-8 (Gwadar-Turbat-Hoshab) and most of others, are still under construction even after passing the stipulated dates, official sources told TheNation.
Due to slow progress of the work and law and order situation in the province, even half of the work could not be completed on some of the projects as around 75 percent work is still to be done on Sorab-Basima-Naag-Panjgur-Hoshab(454 Km) Road even after passing three years.
“Paucity of the funds and law and order situation in Balochistan have been major factors behind the delay of the NHA’s road projects,” said General Manager Coastal Highway Project, Col (Retd) Javed Akhtar while talking to TheNation.
According to the official NHA progress report, the work on the M-8 project has been around 60 percent completed. While the sources told that remaining work on an important road might take more five years.

The work on the (M-8) Gwadar-Turbat-Hoshab was started on September 15 and its completion year was 2010 but only 60 percent work has been completed so far, which clearly indicates too much delay in completion of the important project. While, the Gwadar Port is being considered much important for the progress of the country but delayed payment, poor performance by the contractor and heavy flood in June 2007 are the officially stated reasons behind the delay in completion of this project.Delay in the payment and paucity of the funds has become the major reasons for the delay in completion of most of the projects. For instance, The National Highway Authority (NHA) has to pay Rs 7 billion to Frontier Works Organization (FWO) for long-time, revealed NHA official sources.

the nation

 PM directs Raisani to expedite work on uplift schemes

The provincial government also thanked the prime minister for his special attention to harnessing the full economic potential of Gwadar Port. It was stated in the meeting that 81 ships had berthed at the port till now and 81,000 trucks carried the cargo upcountry without any incident.

The prime minister stressed the need to complete the construction work on the remaining portion of the road connecting the port to all the parts of the country. He also inquired about the feasibilities of drinking water schemes to the port city.

Three projects — Shadikor Scheme, Sunsar Scheme and Swarzai Scheme — for provision of water to Gwadar were discussed in the meeting. Chief Minister Balochistan Nawab Aslam Raisani, while thanking the prime minister for his special attention towards addressing the longstanding issues of his province, said that the economic progress of his province after completion of the projects launched under the Aghaz-e-Huqooq-e-Balochistan would go a long way in addressing the sense of deprivation of the people of Balochistan.

for full story plz visit the news web site

I am glad Mr. Assad is providing updated information about projects. I would like to know how as overseas pakistani who are eager to see Baluchistan and pakistan excel in such an excellent location. How can we help to move things quickly. I would like to invest for industry but would like to see basic amenitiesi n the industrial area. Gwadar is like a gold mine in need of full attention from planners and the government.

The authorities are now looking into the option of transporting goods for Nato forces in Afghanistan via Gwadar Port, a relatively much secure route. A meeting is likely to take place next month to discuss the issue.

the news

ECNEC approves Rs. 7,675 million for constructing Gwadar Airport

ISLAMABAD, Feb 1 (APP): Executive Committee of National Economic Council (ECNEC) has approved Rs. 7,675 million (including Omani grant of $ 17.50 million) for the construction of  new Gwadar International Airport (NGIA) and allied facilities. Planning and Development Division told APP that project envisages construction of Gwadar International Airport over a piece of land already acquired measuring 4,300 acres.
The new airport will be capable of handing a combination of ATR 72, Airbus, (A-300), Boeing (B-737) for domestic as well international routes. These aircrafts can be combi type, if the cargo off-take is substantial.
The construction of NGIA will be undertaken  in phase programme. The short-term need (Ist phase—up to year 2020) includes all the basic facilities which are essential for the operation of and airport.
The  runway configuration will be able to provide up to 50 operations per hour and the terminal will be capable of serving more than 300.000 passengers annually.

APP

Pak, Iran to expedite 1000MW project

Published: January 29, 2010

Ambassador of Iran to Pakistan Masha’allah Shakeri and Minister for Water and Power Raja Pervez Ashraf Thursday agreed to expedite the process of importing 1000 MW power from Iran to Pakistan on fast track basis.
The Iranian envoy Thursday called on Water and Power Minister and discussed matters of mutual interest and bilateral relations to further boost economic ties between the two countries.
The current status of transmission line for import of 100 MW power for Gawadar from Iran was also discussed.
Pervez Ashraf said a Pakistani delegation was leaving for Iran Thursday night to discuss matters relating to import of power within the shortest possible time.
Both sides also discussed the current status of gas pipeline project, construction of transmission line for import of 100 MW for Gawadar and 1000 MW for national grid and appreciated each others’ co-operation in this respect.
Earlier, the minister while welcoming the envoy said Pakistan had close brotherly relations with Iran. Pakistan valued the help and support of Iran and was desirous of expanding bilateral relations in all sectors. Pervez Ashraf said the government was taking necessary measures to generate electricity to bridge the demand and supply gap through fast track projects. He informed that the govt attached high priority to exploit indigenous resources like coal, hydel and wind for power generation. He said first wind mill had started generation in Sindh. He also assured full support to facilitate Iranian investors in water and power sectors of Pakistan.

the nation

Oil spillage keeps Pak ports at OPRC level A

By: Waqar Hamza | Published: January 29, 2010

KARACHI - All three ports of Pakistan including Karachi Port, Port Qasim and Gwadar Port are still at level A of Oil Pollution Response Casualty (OPRC) Convention 1990, and have not yet attained level B owing to the nonchalant attitude of the Ministry of Ports and Shipping, The Nation has learnt.
It is interesting that Ministry does not pay heed on approaching International Maritime Organisation (IMO) for acquiring Level B training and equipment despite the fact that some 80 percent of oil is transported to the rest of the world via Persian Gulf and most of those oil carrying vessels pass through the Exclusive Economic Zone of Pakistan posing a continuous threat as oil spillage in this zone could be disastrous.As per details, Pakistan has become signatory to OPRC-90 in level ‘A’ in 2004 which binds signatory nations to maintain oil spill contingency plan whose activation rests completely with the Director General Ports and Shipping.
It is ironic that besides 3 Oil Piers at Karachi Port, no other public and private terminal in the country submit their annual OPRC compliant report to the Ministry, and it is also in question whether they are OPRC compliant or not under the MARPOL Convention 73/78.
Recently the Director General of the Ministry Afzal Hyder in a meeting said that KPT is looking after the matter and we have fined some oil terminals in this regard, but the interesting fact is that fine is not allowed under the convention.
Being a signatory to the convention Pakistan should have gone to level B and annual audit must be conducted by a qualified staff, as training of such level is also mandatory for the staff of ports and terminals.

the nation.com

 Gwadar Port waits for ships

Vessels avoid anchoring at Gwadar as there is nothing to lift from this port after unloading cargo

Sunday, January 31, 2010
By Farhan Zaheer

KARACHI: The developers of Gwadar Port had perceived it to be the future of Pakistan’s economy. Gwadar is yet to shine despite all the potential of becoming a major port in the region.

The strategically important port helplessly waits for cargo ships while government seems indifferent even after inheriting the gift of Makran Coastal Highway from Musharraf government that links Karachi to Gwadar.

Local people say that Gwadar has seen a positive socio-economic change after the construction of coastal highway that has reduced three days journey to eight hours for reaching Karachi, the commercial hub of the country. Access to the big city has brought numerous bounties to the people of Gwadar district.

Gwadar Port was made with an investment of Rs17.2 billion ($288 million) with Chinese assistance of more than $220 million and over $66 million from Pakistan. Present government is still indecisive as to how to plan and exploit the immense potential of this port.

Ghulam Farooq, Director General, Gwadar Port Authority (GPA) said Gwadar Port will not be fully operational unless and until industrialisation takes place in Gwadar district.

“Cargo ships want to return with some cargo. Why will a cargo ship come to Gwadar Port when it has nothing to take back?” he said while talking to media persons at a local hotel in Gwadar.

Abdul Razik Durrani, DG operations of GPA said the port was increasing its capacity to turn into a hub port with all the facilities. “For instance here we have service berth that we do not have even at Karachi Port and Port Qasim, a RORO facility, which is used in importing vehicles and other machinery, fire fighting equipment, oil pollution equipment with an oil tank of 50,000 gallon capacity.”

Durrani added that two fish harbours were also under construction - one in Pishugaan and the other in Surbandar. Fish industry is one of the largest industries of Gwadar, he said, “we have cold storage system where fish processing and packing is done while a huge quantity of fish goes to Karachi for export to different countries.”

A coastline of 17.5 km is available to Gwadar Port where container terminals would be made. The master plan of Gwadar Port has LPG and LNG terminals that will be given to private companies on build, operate and transfer (BOT) basis, he said.

The first ship offloaded 63,000 MT of wheat at Gwadar Port in March 2008 and from then only Trading Corporation of Pakistan (TCP) has imported commodities through Gwadar Port showing the extent of limited ships.

He said TCP decision of importing commodities from Gwadar instead of Karachi Port was right because the cost was same at both ports. Calculations reveal that the imports through Gwadar were not expensive if compared to Karachi Port and Port Qasim, for demurrages and other charges owing to heavy sea traffic at Karachi levels the cost of imports, he added.

When asked why two ships have ran aground at Gwadar Port, he replied, international laws say that any damage in case of incident to the ship is the responsibility of captain whether it touches jetty or runs aground.

The Port of Singapore Authority (PSA) the operator of Gwadar Port handles millions of containers around the world making it easier for them to develop this port according to the schedule plan, Durrani said.

PSA has much more important role to play than just the port operations, for instance bringing business, setting up container terminal, making it a proper and viable port is the responsibility of PSA, he said.

With the import of TCP commodities various employment opportunities emerged like truck drivers and other lifters that increase the hopes of local people that they will get more employment as the port operations grow. “With the increase in port operations, local people will get more employment and their grievances will certainly start decreasing,” he said.

“Private businessmen at Gwadar Port will certainly employ local people. Why would they bring labour for Rs500 per day when the local labour is available for Rs200 a day? How they can prefer to bring costly labour from Karachi or Quetta when they get trained local people in Gwadar? He asked and rebuffs the reservations of local people who think that they will be marginalized in employment opportunities.

Obviously, local people have the right and we would ensure that local people get training on priority basis, he added.

On the availability of water and electricity in Gwadar, he said electricity load shedding in Gwadar was same as we see in other parts of country while Gwadar Development Authority (GDA) was looking for desalination plant and electricity generation on its own.

the news

I am happy to see the post by Mr. Assad but how long this is going to take to build and what quality of construction wouyld it be. Well see. Also can anyone give me update whay Gov is taking so long to provide water abd build desalination plant for water? Who can we get in touch with to discuss sorry state of pace for development.

Sajjid sahib, I have also invested heavily in Gwadar many years back. But unfortunately seems like things are not moving as we like them to. present govt. is trying its best to loot as much money as possible to from the people of pakistan and acquire heavy loans in the name of pakistan. the balouchs leaders who are in power these days are those balauch sardars who never wanted any developments to beging with. they wanted to abuse ordinary people.

I bought 3 1 acre lots in Gwadar Industrial area. Tried several times to get information through local newspapers as to what is happening at Gwadar. What is the status of Desalination plant to supply water so when I submit feaibility study to banks for loans I can convince them that there won't be any problems related to water. I am amazed how there is no local e news paper which is up to date. I would like to invest and build in the industrial area but without ample water and electricity how do GDA expect  the investors to invest in Gwadar. I do not still understand if Balochistan wants to gow they should be everthing in their power to provide the basic amenities.