Gwadar Port Authority

Last updated
Gwadar Port Authority
FormationGwadar Port Authority Ordinance, 2002
Chairman
 Passand Khan Buledi
Affiliations China-Pakistan Economic Corridor (CPEC)
Budget
Rs.823 million (for local fishermen support)
Website gwadarport.gov.pk

The Gwadar Port Authority (GPA) functions as a governmental body in Pakistan established in accordance with the Gwadar Port Authority Ordinance, 2002, this ordinance outlines the framework for planning, constructing, operating, managing, and maintaining the Gwadar Deep Water Port situated in Gwadar. [1] [2] The GPA was founded to oversee the planning, construction, operations, management, and maintenance of the Gwadar Deep Water Port, located on the Arabian Sea in Balochistan province, Pakistan. It operates under the administrative authority of the Maritime Secretary of Pakistan and is under the operational oversight of the China Overseas Port Holding Company. As of 2023, Passand Khan Buledi serves as the Chairman of the GPA. [3]

Contents

Operations

Gwadar Port is owned by the government-owned Gwadar Port Authority [4] and operated by China Overseas Port Holding Company (COPHC), a state-run Chinese firm. [5] Prior to COPHC, the port was operated by the Port of Singapore Authority.

Port of Singapore Authority (2007–2013)

Following the completion of Phase I, the Government of Pakistan in February 2007 signed a 40-year agreement with PSA International for the development and operation of the port, and an adjacent 584-acre special economic zone. [6] PSA International was the highest bidder for the Gwadar Port, after its competitor DP World withdrew from the bidding process. [7] PSA was granted a wide range of tax concessions, including exemption from corporate tax for 20 years, land for a special economic zone, duty-free imports of materials and equipment for construction and operations of the port, and duty-free shipping and bunker oil for 40 years. In addition to these incentives, the provincial government of Balochistan was also asked to exempt PSA International from the levy of provincial and district taxes. According to the agreement with PSA, the Government of Pakistan was to get a fixed 9% share of the revenue from cargo and maritime services, in addition to 15% of revenues earned from the adjacent special economic zone.

In September 2011, The Wall Street Journal reported that Gwadar was being underused as commercial port, and that Pakistan had asked the Chinese government to assume operations of the port. [8] PSA also reportedly sought to withdraw from its contract with the Pakistani Government, and expressed willingness to sell its share in the project to a Chinese firm after the Pakistani Navy failed to transfer land required for development of the planned 584-acre free trade zone. [6] PSA also did not invest the agreed $550 million into the port, on account of the poor security situation in Balochistan in the period between 2007 and 2013. [6] The government of Pakistan also failed to invest in requisite infrastructure works. [9] The Supreme Court of Pakistan further issued a stay order against the allotment of land to PSA on account of a public petition. [6]

China Overseas Port Holding Company (2013–present)

On 18 February 2013, Pakistan awarded a contract for the construction and operation of Gwadar Port to a Chinese state-owned enterprise. As per details of the contract, the port would remain as property of Pakistan, but would be operated by the state-run Chinese firm – China Overseas Port Holding Company (COPHC). [10] The contract signing ceremony was held on 18 February 2013 in Islamabad, and was attended by Pakistani President Asif Ali Zardari, Chinese Ambassador Liu Jian, as well as various federal ministers and members of parliament, as well as senior government officials. [10] The ceremony also marked the transfer of the concession agreement from the PSA to the COPHC. [10]

As per this agreement, 91% of the revenue generated by Gwadar Port will go to COPHC and 9% to Gwadar Port Authority. [11] In March 2019, the Pakistani Senate was informed that during last three years, total gross revenue of Rs 358.151 million had been generated from Gwadar Port, out of which the share going to Gwadar Port Authority was Rs 32.324 million. [12]

Developments

Regarding infrastructure advancements, the GPA has devised a strategy to provide 20 MW of power to energize not only Gwadar Port but also both Gwadar Free Zones. [13] [14] This initiative is a component of a comprehensive plan aimed at stimulating economic activities and expediting industrialization in the Gwadar region. [15]

In 2022 to support the local fishing community, the federal cabinet sanctioned the allocation of approximately Rs.823 million to the GPA. This funding is intended for the acquisition of boat engines for 3,291 underprivileged fishermen residing in Gwadar. [16] [15] Each fisherman is earmarked to receive Rs250,000 to facilitate this initiative. [17]

Chairmen

List of chairmen of the Gwadar Port Authority (GPA): [18]

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References

  1. ↑ "Gwadar Port Authority Ordinance, 2002". pakistancode.gov.pk.
  2. ↑ https://moma.gov.pk/SiteImage/Misc/files/GPA%20Ordinance%202002.pdf
  3. ↑ "Passand Buledi appointed as chairman Gwadar Port Authority". The Nation. September 17, 2022.
  4. ↑ "Welcome to Gwadar Port". Archived from the original on 16 May 2014. Retrieved 23 May 2014.
  5. ↑ Ahmed, Haseeb. "Pakistan hands over Gwadar Port operation to China". The Nation. Archived from the original on 25 February 2013. Retrieved 2 March 2013.
  6. 1 2 3 4 "China set to run Gwadar port as Singapore quits". Asia Times. 5 September 2012. Archived from the original on 6 August 2016. Retrieved 23 June 2016.{{cite news}}: CS1 maint: unfit URL (link)
  7. ↑ Walsh, Declan (31 January 2013). "Chinese Company Will Run Strategic Pakistani Port". The New York Times. New York Times. Archived from the original on 17 January 2017. Retrieved 22 June 2016.
  8. ↑ Tom Wright, Jeremy Page (30 September 2011). "China Pullout Deals Blow to Pakistan". The Wall Street Journal. Archived from the original on 13 January 2017. Retrieved 3 August 2017.
  9. ↑ Walsh, Declan (31 January 2013). "Chinese Company Will Run Strategic Pakistani Port". The New York Times. New York Times. Archived from the original on 17 January 2017. Retrieved 22 June 2016. But Pakistan has failed to build the port or transportation infrastructure needed to develop the port, the property bubble has burst and, according to the port management Web site, the last ship to dock there arrived in November. "The government never built the infrastructure that the port needed – roads, rail or storage depots," said Khurram Husain, a freelance business journalist. "Why would any shipping company come to the port if it has no service to offer?
  10. 1 2 3 Raza, Syed Irfan (18 February 2013). "China given contract to operate Gwadar port". dawn.com. Archived from the original on 4 June 2013. Retrieved 25 March 2018.
  11. ↑ "China to get 91pc Gwadar income, minister tells Senate". 25 November 2017. Archived from the original on 16 July 2019. Retrieved 28 July 2019.
  12. ↑ "Gwadar Port generates Rs358.151m revenue during last three years: Ali Haider Zaidi | Customs Today Newspaper". 20 March 2019. Archived from the original on 28 July 2019. Retrieved 28 July 2019.
  13. ↑ "GPA plans 20MW for Gwadar Port, free zones". The Nation. June 13, 2023.
  14. ↑ "GPA plans 20 MW for Gwadar Port, both free zones". June 11, 2023.
  15. 1 2 "Gwadar's Fishermen to Finally Get Rs. 823 Million for Boat Engines".
  16. ↑ Abbasi, Zaheer (December 29, 2022). "Boat engines for 3,291 Gwadar fishermen: Cabinet approves disbursement of Rs823m to GPA". Brecorder.
  17. ↑ "Govt to Pay Gwadar's Fishermen Rs. 250,000 Each".
  18. ↑ "GPA-Chairman History". gwadarport.gov.pk.
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