Islamabad dumps the PSA and signs an agreement with China to run Gwader.
With the Chinese General of the PLA visiting the Lankan port of Humbolta, this announcement takes on added significance for Pakistan and China. The string of Pearls strategy is being pursued agressively and Islamabad is a key component of that strategy.
Gwader holds the key to Central Asia and it is very important for Pakistan and China. With Chimese presence in Gwader the US presence wanes.
Pakistan has suffered from the incompetence of the Singaporian Port Authority and has decided to pull the plug on them. Islamabad has also decided to is transfer operational control of its strategically important Gwadar Port from Singapore’s PSA International to a Chinese company. This was reported in the Financial Times on Friday quoted a minister as saying.
The Pakistani Ports And Shipping Minister Babar Khan Ghauri was quoted as saying that “We have reached an agreement with PSA where they have decided to leave the port at Gwadar. They are in discussions with a possible Chinese investor.”
“There is a decision for PSA to leave and we have given our consent,” said Ghauri, who declined to name the potential Chinese replacement.
Analysts, sources in the military, and Pakistani officials said strategic as well as commercial interests played a part in the dumping the PSA which had promised to spend $80 billion on the port. Beijing’s take over of the port contract “will be a landmark development, both for Pakistan and China..This has great value for China”… “We believe the Chinese may use their presence at Gwadar to lay down a pipeline in future for transporting Middle Eastern oil to western China.”
Pakistan is the only country in the works that has built three ports–two of them from scratch. Gwader is strategically important for the entire region and gives Islamabad total control of the Gulf and the Strait of Hormuz
Gwader is a key port for Pakistan
This is bad for Singapore Inc if not refuted. PSA has some explaining to do.
When 2 of the world’s most highly corrupted countries come together, everyone else will be most incompetent to them…at least in how to mutually benefit each other through astute and most creative form of corruption that no one will dare to claim they are no. 1, if these 2 claimed they are no. 2!!!
What do you mean PSA has explaining to do.
Singapore has had Gwadar for the last 4/5 years and done didley squatt with it.
Allowing Singapore to manage it was a good move as the Singapore model would have been ideal for Gwader – however they have cost Pakistan time and money.
Strategically speaking it is better for China to manage and invest in Gwader as China will become the major benefectory of this “satellite” port. The mdoern incarnation of the Silk Route and will connect the energy network to China from the Straits of Hormuz and Middle East to China.
Pakistan needs a credible partner to develop Gwader as the potential is immense with Russia keen to capitalise on utilising Gwader as well as the rest of Central Asia.
A network of ports stretching from China to Sri Lanka to Pakistan to Iran, Maldives, Yemen, Horn of Africa onto Turkey will become the single most important trade route in the world.
Yes we will have to watch out from some of the “other” nations like