Chinese Company Given Permission to Operate Sea Port in Pakistan
State owned company China Overseas Port Holding Co. that operates Gwadar port in Pakistan was given permission to create a special economic zone spread in the 152 hectares strategic deep water seaport. The land is leased to the Chinese company for 43 years and the zone will have a large exhibition center that will showcase Chinese and Pakistani products.
Gwadar, is located in the shores of the Arabian Sea in Pakistan’s western province of Balochistan has a strategic importance based in its location which is between South and Central Asia and the Middle East that sits through the mouth of the Persian Gulf and several important sea routes such as the Straits of Hormuz wherein 20 percent of the global oil shipments pass. As part of the agreement, the Chinese company that is based on Hong Kong will be fully in charge of Gwadar Port the third largest port in Pakistan, a sea area management company and an international airport. China will be investing $1.62 billion in the sea port project in Gwadar this include the construction of expressways that will link the harbor and coastline, a railway link, breakwater and nine other projects that is said to be completed in the next five years.
Zhuhai Port Holdings Group and China Overseas Port Holding jointly build the Pakistan port. These two Chinese companies will be working together in personnel training, goods supply, logistics warehouse construction, route exploration and information platform. The Gwadar project is also the end of the China Pakistan Economic Corrdor that runs around 3,000 kilometers from Gwadar going to the northwestern Chinese city of Kashgar as part of the ancient Silk Road that links Africa and Eurasia.
The land deal for the project will place economic cooperation between the two countries and bolster China’s new trade initiative the Silk Road Economic Belt and the 21st Century Maritime Silk Road.