Report by Engineering Post
Since May 2023, the Gwadar Port’s Concessional Rights were transferred to the new operator China Overseas Ports Holding Company Limited. Since the concessions were handed over to the new operator, it has been working on improving the port facilities, surrounding environment and port facilities. The port operator was reported to have invested more than US $ 50 million for port facilities upgradation and the port was fully operational for sometime and receiving commercial vessels on a regular basis.
The China Overseas Ports Holding company Limited (COPHCL) has since been completed work on the internal development of the Pilot Zone of Gwadar Free Zone on an area of 60 acres and initiated marketing. The construction of Gwadar Free Zone Phase-1 has also since been completed with all required infrastructures, including power, water, road, telecommunication, waste treatment, drainage systems were now in operation for quite sometime by now.
The enterprises involving the fields of banks, insurance, financial leasing, hotels, overseas warehouses, fishery products processing, edible oil.
processing , pipe ,furniture manufacturing ,trade and logistics, supply and export of petroleum and petrochemicals had also since been registered in the Free Zone. The total investment of the company was US $ 250 million for Gwadar Port Free Zone.
Gwadar Port Authority through the Federal government has also arranged various incentives and facilities for both local and foreign investors in the Gawadar Free Zone in addition to the standard facilities i.e. 23 years complete tax holiday from all federal, provincial and local taxes, upto 99 years lease for sub-lessee/investors, 10 percent exemption from import duties and sales taxes on all material machinery and equipment , One Window facility service, 100 percent foreign ownership for foreign investors, ready to use offices, light industrial units and warehouses, required infrastructure and lencesing procedure etc.
China Port Holding Company has also completed the master planning and feasibility work on the main Free Zone over an area of 2281 acres of land and some industrial units had started their construction works which were in the final stages by now.
The Governments of Islamic Republic of Pakistan and the People’s Republic of China had also agreed on a long – term bilateral trade and economic corridor programme i.e. China-Pakistan Economic Corridor (CPEC) since 2013-14.
A number of development projects including Construction of Eastern Expressway, Pak-China Technical and Vocational Institute as well as 1.2 million Gallons Daily Plant at Gawadar (China Grant) have already been completed.
Additionally , different projects were also at various stages of completion in different sectors concerned under the Public Sector Development Programme (PSDP) of the Federal Government.
Meanwhile, a report recently submitted to the Prime Minister has duly highlighted key hurdles including security concerns, high operational costs, lack of infrastructure facilities and somewhat limited international interest at the Gwadar Port despite offering of quite lucrative incentives to the Chinese port operator.
It was reported by the official sources concerned that the federal government was taking adequate measures to address infrastructure, security and economic barriers hindering Gwadar Port’s full-scale operations despite incentives.
