Gwadar Port and its strategic importance

Gwadar Port is a warm-water, deep-sea port situated on the Arabian Sea at Gwadar in Baluchistan province of Pakistan. It is located at the mouth of the Persian Gulf just outside the strategically important Strait of Hormuz. It features as the southern Pakistan hub if the $57 billion China-Pakistan economic Corridor plans. It is considered as a vital link between the Chinese One Belt, One3 Road initiative and the Maritime Silk road Project.

·         Pakistan has leased the operations of its strategic Gwadar port to a State-run Chinese firm, the China Overseas Port Holding company (COPHC) for a period of 40 years.

·         COPHC is slated to carry out all the developmental work on the port situated in the Balochistan province of Pakistan.

·         COPHC took over the operations of the port in 2013. Previously, the control of the Gwadar port was with Singapore’s PSA (Port of Singapore Authority) international.

·         As per the contract, 91% share of revenue collection from gross revenue of terminal and marine operations as well as 85%  share form gross revenue of green zone operation will go to the COPHC

·         The provinces will not be given any share in the revenue collection.

 

Advantages for China

1.       In addition to its significance to reduce Chinese dependence on the Sea of Malacca and South China Sea routes, the port of Gwadar will provide china and alternative and shorter route for energy imports form the Middle East, thereby reducing Shipping costs and transmit times.

2.       Having Gwadar under its command would change the security dynamics for China. As China’s oil imports increase, it would prefer to insulate its energy transports form the troubled waters of the Straits of Malacca and the South China Sea.

 

Implications for India

·         Gwadar port offers serious strategic implications for India; Gwadar provides china a key listening post to observe the Indian naval activities around the Persian Gulf and gulf of Aden.

·         The Gwadar port, if fully operationalized, will wean Pakistan away from near –total dependence on Karachi, which is much closer to India and hence within the Indian military’s strike range.

·         Lease of Gwadar port also helps china to encircle India (String of Pearls) and gain strategic advantage in the region. India has apprehensions that these ports could be used for military purpose as well.

In May 2016, Indian Prime Minister Narendra Modi and his counterpart, Iranian President Hassan Rouhani, signed a series of Twelve agreements in Tehran, in which India ports Global Pvt. Limited will refurbishes Port of Chabaha, Improvements at the port are intended to allow Indian goods to be exported to Iran, with the possibility of inward connections ot Afghanistan and Central Asia. A section of the Indian media described it as “a counter to the China- Pakistan Economic Corridor.