ISLAMABAD: Despite being constructed over ten years ago, Gwadar Port has yet to be commercialized, making the multibillion-dollar infrastructure project a white elephant rather than a hub for transhipment.
The main points of a high-level meeting on the operationalization of Gwadar Port, which was called upon by the prime minister and chaired by Planning and Development Minister Ahsan Iqbal, were that the “crown jewel” of the $50 billion China-Pakistan Economic Corridor was not properly marketed and handled by officials from the Ministry of Marine Affairs (MoMA) and the National Logistics Cell (NLC).
According to well-informed sources, Gwadar’s failure to keep up with comparable facilities in the area has caused anxiety among all parties involved, including the government, as it has failed to provide the promised business and job prospects to the people in the absence of commercial operations. They felt that this, along with inadequate public services like water and energy shortages, was being taken advantage of by outside forces, resulting in frequent disturbances and demonstrations.
In order to at least start port operations, Prime Minister Shehbaz Sharif ordered in a recent meeting that 60% of all public sector cargo be routed through Gwadar. He also instructed the planning minister to investigate the issue, report back on why the port has not picked up, and recommend corrective measures.
The planning minister acknowledges that the multibillion-dollar complex is still a “white elephant” and is not viable.
While the operationalization of Gwadar was being discussed, the minister first expressed worry about the lack of representation from the Balochistani administration. The minister was quoted as telling the participants, “Unfortunately, nothing has been done for marketing of transshipment cargos.” The minister also added that the relevant authorities had not contacted shipping companies and international traders to explain how shipments from China via Gwadar could be less expensive than traditional routes.
Two years ago, this comparison analysis for competitive marketing ought to have been underway in full force to stimulate commerce and shipment operations and create jobs for the local population. “Gwadar port has become a while elephant in the absence of port activities and business opportunities,” he stated.
“We have not been able to prepare a business strategy for commercialization,” he lamented, adding that the friendly governments and pertinent maritime stakeholders in the CARs should have been pursued through appealing marketing. CARs were prepared to transfer their cargoes through Gwadar. “We should take a cue from our neighbors who establish their product reputations overseas and attract customers before their products are even released,” he stated.
In order to attract business through Pakistani missions overseas, the minister instructed the relevant authorities to hire an international consultant who could perform a cost-benefit analysis of shipments through Gwadar in comparison to other ports in the region. The consultant would also explain how shorter this route could be, along with shipment duration and costs, among other things. He assured everyone that the prime minister would be informed of everything discussed at the meeting and that it would be put into effect.
The minister also chastised the NLC for charging exorbitant prices for shipments via Gwadar and suggested that instead of focusing on single cargo, they could consider generating more cash from ten to fifteen cargoes at a lower cost.
