Thursday, November 12, 2015

Strategic considerations of Chinese companies taking over gwadar Singapore stopped

Gwadar port back to China enterprises.

On November 11, the Pakistani official overseas ports to China Holdings Limited (harbour control) over gwadar port free trade zone 300 hectares of land--gwadar a free trade area in the planning area of 923 hectares at present 30%, port of China overseas Holdings Limited (hereinafter) 43 development permissions. So far, China has made economic corridor's most important piece of the puzzle.

Gwadar is located in western Pakistan from Iran borders less than 100 kilometers away from Middle East oil throat Oman Bay only 380 km. If Middle East oil through the port of gwadar, overland via the Economic Corridor into Xinjiang, China, oil transport via the Straits of Malacca in China range 85%.

Have a sound view of the market, if the gwadar port to export economic corridor will eventually get through, China will significantly reduce the dependence on the Straits of Malacca, which will profoundly affect Asia's economic strategy.

Agence France-Presse quoted the Pakistani analyst Hassan Askari (Hasan Askari) as saying that this project will provide access to the Arabian Sea for China's "new channel". It showed the world that China is willing to help his friends, to actively expand their economic and trade activities influence.

On November 12, a Chinese Foreign Ministry spokesman Hong Lei at a regular press conference the official statement is given: Chinese companies taking over gwadar to operate, are commercial projects under the bilateral economic and trade cooperation, are part of the mutually beneficial and friendly cooperation between the two countries. Gwadar port project is one of the key projects under the framework of the Economic Corridor, CMB enterprises will continue to be consultation on an equal footing, mutual benefit and win-win principle of development and promoting the construction of gwadar port.

Silent gwadar: about Singapore "stop" conspiracy theory Li ruigang explain Chinese culture on the filmmaking

Strategic considerations of Chinese companies taking over gwadar: Singapore stopped Hu to fabricate a conspiracy

For China, this time got the operation of the gwadar port, can be described as a regression.

In fact, phase I of gwadar port in China to Pakistan of a rebuilding project. Since 1958 Pakistan millions of dollars of funding from Oman after bought gwadar has not yet been effectively developed. Until March 2002, under construction in China, phase I of gwadar port to break ground, general contractor for the project of China Harbour engineering company limited.

But after the completion of the project, China did not get the gwadar port operation. In 2006, Chinese companies interested in bidding of gwadar port operation, but ultimately was Singapore PSA International (PSA) at a high price "stop". (Editor's Note: on July 31, 2006, the commercial record newspaper had reported that the then-Pakistani President Pervez Musharraf was briefed to Dubai Ports World Corporation, the Singapore port authority, China Harbour and Cosco Consortium three operators of gwadar port operations management and investment plans of proposed assessment report, Pakistani officials believe that Singapore likely to win, because it has the world's large port management experience. In October of the same year, the commercial record newspaper said a total of 9 companies and the Consortium submitted letters of intent, 4 into the list of candidates, and there is no Chinese company on the scene. )

Singapore International Group formerly known as the Singapore port authority, is currently a wholly-owned subsidiary Temasek Holdings, run Singapore in Hong Kong.

And echo is since 2007 Singapore PSA International won 40 operations right after, gwadar and unable to drive on as Pakistan would like the development "fast track". Pakistan today reported in June this year, 2008-2014, the gwadar port is only 5.7 million tons of imported goods, mostly through trading companies in Pakistan, the Government imported urea and wheat, which arrived at the port of gwadar and then transported by highway to Karachi and gwadar has not fulfilled its potential.

At the time, some conspiracy theorists even believe, Singapore win the gwadar port operation at high prices, not for the sake of economic interests, but to delay development of the gwadar port, Singapore Hong Kong more maneuver.

But Pakistani media also pointed out that gwadar has still failed to develop, mainly Palestinian Authority its own problems.

Pakistan's Dawn newspaper reported that Singapore PSA international plans within 5 years invest $ 525 million in gwadar port project, but in the end did not make any substantive investments because Pakistani authorities have not honoured with a value of 15 billion rupees (about 150 million US dollars) allocation of land.

The Pakistan observer also mentioned speculation that Pakistan's ports and Government Minister Babar Khan Ghauri is not willing to see the development of gwadar port, dependence on worries weakening for the Karachi port. The story the same volume, Singapore PSA requests received 2250 acres of free land for development.

In this regard, the Director of the Pakistan study centre at Fudan University, Du Youkang view is that gwadar when bidding for the first time, its future is uncertain, but also involved in Afghanistan issues, and also in Central Asia could not get through, so is not substantive involvement of Chinese enterprises, "Singapore has no hostile bid. At the time, gwadar port hinterland and Balochistan only, no cargo, minerals, agricultural products and other goods, as trade routes is not smooth. "

"In recent years, after China and Pakistan all the way along the proposed corridor, prospects and importance of the port of gwadar is reflected. "Du Youkang surging on news (www.thepaper.CN) said.

Disk access port control: not alone in the fight

In 2012, Singapore PSA International and Pakistan's decision to give up the contract. In February 2013, Pakistani President Asif Ali Zardari announced transfer of operating rights of the gwadar port to port control.

Harbour control was established in China in Hong Kong, under the China State Construction Engineering Corporation, overseas division.

China State Construction Engineering Corporation (hereinafter China State) was founded in 1982 and its predecessor for State Construction Engineering Bureau. According to official information, cscec was operating in more than 100 countries and regions in the world, currently operating region are mainly distributed in 27 countries and regions in the world. Since 1982, the company set up by the end of 2013, cscec to undertake a total contract amount of 6.4 trillion yuan (below), completed turnover amounted to 3.8 trillion yuan, 2014 ranking the contractor first.

Harbour control in Pakistan company were involved in logistics and shipping, and includes the following companies: gwadar international terminal operators, gwadar marine services company, gwadar free trade zone companies.

Of course, the harbour control was not alone in the fight.

In October, the holding group of Zhuhai port and harbour control port signed cooperation agreements and agreements involved projects amounting to 6.5 billion yuan. In addition, the Zhuhai huafa Group also plans and port control cooperation projects in China's commodity Exhibition Center. The Centre is located in the West of the port of gwadar, covering an area of 250,000 square meters, concentrated sales distribution, warehouse and customs clearance of transit and other functions. Project amount of 1 billion yuan.

But it was only a start.

Control after initial took over operation of the Harbour, gwadar commercial container export business for the first time in May this year has just begun, harbour control website to introduce, as COSCO Group "Chinese song" wheel stops, gwadar has entered a new period of all-round carrying containerized cargo import and export business. The routes to the far East-South Asia (Karachi-gwadar)-Persian Gulf-far East per month will have two ships docking port of gwadar.

Pakistan today said that only 6 containers transported by container ship goods have no economic benefit, the first batch of 135 tonnes of frozen fish exported to the far East, but due to course arrangements must be to load normal containers to Dubai and then to the far East, and the cargo ship the goods imported did not mount any gwadar, meaning harbour control will have to bear the costs.

Safety factor: Pakistan tens of thousands of security personnel assigned to

Enhancing the attractiveness of gwadar port, operator and the Government needs to do a lot. One of which is security.

The Forum express reported in September in Pakistan, gwadar Balochistan where there have been small-scale insurgency, more than local tribal leaders opposed to the proliferation of foreign investment, requiring a high degree of autonomy, sees foreign investment as "exploiter" Chinese workers on the ground have repeatedly suffered attacks.

According to incomplete statistics, Balochistan nearly three years it's happened at least 6 armed clashes and suicide attacks, more than 150 people were killed.

Forum express said, currently view China on melon up, Hong Kong has interest also is for commercial consider, ensure energy supply has such a article alternate line, but consider to Balochistan not stable of security factors, melon up, Hong Kong also not China of best bet, so, melon up, Hong Kong also far not reached became China economic hub of when, more alone became a items security of assets, Pakistan primary consider of, should is ensure this project of security.

Shanghai international issues Research Institute of South Asian Studies Center Director Zhao Gan city surging to news (www.thepaper.CN), promoting the construction of economic corridor, the biggest challenge is the security problems in Pakistan, although there has not been an economic Corridor project to promote safety, but strong inside Pakistan by extremist forces, gwadar there are kidnappings. In addition, there are a number of other issues, such as India may be obstructed and the political problems of Pakistan, Afghanistan and so on.

According to Pakistani media reports, the Palestinian side is ready for the gwadar port to form a special security force, there will be 10,000-25,000 security personnel specialized in the protection of gwadar port project.

China opportunity: promote Western development

Strategic considerations of Chinese companies taking over gwadar: Singapore stopped Hu to fabricate a conspiracy

Economic corridors from Kashgar in the North, South to the port of gwadar in Pakistan, is expected to cost $ 45 billion total, scheduled for completion in 2030.

In April this year, China XI Jinping pays a State visit to Pakistan, both sides agreed to economic corridors to lead, at the port of gwadar, energy, transport infrastructure and focused on industrial cooperation, forming "1+4" layout of economic cooperation, and completed as soon as possible of the economic vision of the corridor.

"Gwadar port extension is very important part of the Economic Corridor, gwadar port is now an isolated port, it is difficult to play a benefit, so the first step to increasing infrastructure construction, turn it into a free port and free trade zone, the Palestinian side has been offered sufficient protection in land. "Zhao Gancheng said.

Through economic corridor of Dongfeng, the Karakoram highway has been expanded, but less road traffic, Karakoram often has mud-rock flow, easily paralyzed roads, traffic is no way guaranteed. Therefore to make gwadar port can really play a role, need for railway construction to complete can be achieved.

Du Youkang surging to the press briefings, railway construction has been planned, but not yet started, with the original road to the essentially similar, still needed to be negotiated between CMB and the specific path. Pakistan railways to differing views, you can select a more convenient area, you can also choose more economically developed areas, some economically underdeveloped region also hopes that the railway can approach the local, so as to promote local development.

In his view, in the construction of the railway, will pass the Karakoram red mountain pass and Kashgar railway have been, how to link the issues to consider is this. Of course, the construction of the railway is not difficult for China, China has had experience in construction of the Qinghai-Tibet Railway, the poor geological conditions in some areas, but generally fell within the acceptable range, but relatively high price.

In addition, Du Youkang also mentioned that "development is needed for each port economic hinterland to support. Up to now, the gwadar port economic hinterland is very small, cannot play the port role. "

But in the long run, said Du Youkang, gwadar port operation in the future good economic and trade cooperation, and developed as a trans-shipment port, coordination with the port of Karachi, will not only benefit the economic development of Pakistan, and will give impetus to China's Western development. If Central Asia get through gwadar and to develop India Ocean, hinterland of South Asia.

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