Pak new port to let China control oil flow from Persian gulf: end to US monopoly ?

Guys,

By 2010 the Pakistani port of Gawadar will be ready with chinese help. THe chinese will spend billions of dollars to contruct the port. THe port sits right at the opening of the persian gulf from where 80 % of the world oil is shipped. ALso the gawadar will serve as the port for Central asian gas and oil.

The pakistani govt is thinking about giving china a permanent base there which will allow china to control the oil flow if needed. Plus the Pakistani Navy will also have a port there.


China Gains Strategic Foothold Near Persian Gulf

Pacific Rim Bureau (CNSNews.com) - Pakistan, within weeks, will mark the opening of the first phase of a deep-sea port project that analysts say will give China a crucial economic and strategic foothold in the Arabian Sea.

Chinese funding has enabled President Pervez Musharraf’s government to push ahead with the project on Pakistan’s southwest coast, near the mouth of the Persian Gulf and some 250 miles from the Strait of Hormuz, a major conduit for world oil supplies.

Experts say the project has set off alarm bells in the U.S., where China’s military buildup is warily watched; and in India, a major Asian rival to China and a longstanding foe of Pakistan.

The advantages for China include access to port facilities for commercial and naval vessels near the oil-rich Gulf; and a new international trade route linking China’s remote western regions to the ocean, via road and rail links through Pakistan.

The port, located at a former fishing village called Gwadar, will also strengthen China’s strategic influence with South Asian and Gulf countries.

Pakistan benefits from having a new port as an alternative to the more vulnerable Karachi to the east, which the Indian Navy has blockaded during past conflicts. This will in turn allow Pakistan to bolster its own naval capabilities.

The port will also enable Islamabad to offer lucrative trade routes to the landlocked republics of Central Asia.

Beijing insists its interest in Gwadar is purely commercial. It has contributed almost $200 million – four times the size of Pakistan’s investment – for phase one of the project, and also supplied 450 workers and technical assistance.

The first phase, due to be officially opened next month in the presence of Chinese Premier Wen Jiabao, includes three multi-purpose ship berths. A second phase envisages nine or ten more berths, an approach channel, and oil, grain and bulk cargo terminals.

Economic, strategic motivation

In the current issue of the Georgetown Journal of International Affairs, Pakistani scholar Zia Haider writes that China’s interest in the project lies in consolidating its relationship with Pakistan, securing and diversifying routes for oil shipments, and extending its presence in the Indian Ocean.

“A Chinese presence at Gwadar allows China to ensure the security of its energy-related shipments along existing routes,” says Haider, who is based at the Stimson Center in Washington.

“It could also monitor U.S. naval activity in the Persian Gulf, Indian activity in the Arabian Sea, and future U.S.-Indian maritime cooperation in the Indian Ocean.”

Re: Pak new port to let China control oil flow from Persian gulf: end to US monopoly ?

will china still have the strategic foothold if in 2010 gwadar happens to be in a country by the name of republic of Balochistan?

Re: Pak new port to let China control oil flow from Persian gulf: end to US monopoly ?

It looks like a great deal for both the countries. Specially the concept of 'Asian Tiger' Emerged in the Era of Nawas Shareef (perhaps) is now getting some strength.

Once the project is completed. Pakistan will also gets the economical benefits from it so all in all its time to change.. Lets adopt it