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Gwadar Port Case Study

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The port holds great strategic and economic significance for Pakistan. The third important deep sea port of Pakistan after Karachi and Qasim ports is Gwadar port. It is located at cross junction of international sea shipping and oil trade routes. It can act as an international trade hub for Pakistan. Gwadar port would connect three regions, i.e. Central Asia, South Asia and Middle East. It would help in the development of Baluchistan and open new job opportunities. Pakistan would be able to explore minerals, hydrocarbons, oil and gas resources of CARs. The port will attract foreign investment and tourism. It would provide foreign reserves and free trade zones and special economic zones (SEZ) that would help in the economic prosperity of Baluchistan …show more content…

To build a network of roads and railway links requires huge investment.
 Hub Port: Transshipment cargo. Influencing big shipping lines to bring their large craft to Gwadar for transshipment of container cargo. It requires low port charges and creating a relative cost advantage, cargo handling costs. The question is: can Gwadar port management provide this advantage? Marketing the port to get shipping lines to use Gwadar as a Hub port will be the great challenge. For many years to come Gwadar will remain a transshipment port with little probability of serving inland destinations.
 Competition from Bander Abbas, Dubai, Fujairah, Chahbahar and Salalah. Iran has already good road and railway association from Chahbahar and Bander Abbas to Central Asia.
 Chahbahar in south western Iran is distinctly possible to become the strongest challenger of Gwadar to transit trade for Afghanistan, China and Central Asia. Chahbahar is regard as the economic gateway to the world due to its location outside the Strait of Hormuz.
 Gwadar has the potential of becoming a hub port for Pakistan’s other ports. The opportunity for Gwadar to become a natural choice for major shipping lines must be exploited by providing cost effective port

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