Pakistan to sign Dubai Ports World for Gwadar port

Society Pakistan & World Affairs
1

Encouraging to see such high focus investors interested in Gwadur port and Pakistan.

**Pakistan to sign Dubai Ports World for Gwadar port **

Despite the security furore over the pending acquisition by UAE-owned Dubai Ports World for some of the management rights at six US ports, Pakistan has announced it will begin negotiations with the company to run its new Gwadar port. The acquisition will further expand DPW’s already enormous reach into world shipping as it and two other companies – Singapore-owned PSA and Hong Kong-based Hutchison, which is involved in a deal that could see it take over the operations at Christchurch’s Lyttleton port – competititvely consolidate the management of the world’s ports. Unlike many other deals involving the shipping giants, the Lyttleton port deal would see Hutchison acquire a 19 per cent share in the port itself. Many deals, including the controversial DPW ones in the US and the proposed new deal in Pakistan, involve only management rights. According to Dawn, Prime Minister Shaukat Aziz over the weekend approved a proposal to initiate negotiations with the Dubai Ports World for appointment as operators for the Gwadar port. Gwadar port will be functional by the middle of this year, Dawn said, after completion of additional dredging that will see it become the deepest port of the country and the trans-shipment port for the region.

The Gwandar port project, on the drawing board since the mid-1960s, came to life in 2001 when China agreed to participate in construction as part of its effort to project its presence into political and economic hot zones around the world. As part of the port’s development, China has contributed hundreds of millions of dollars, constructed a highway between the once-sleepy fishing town and Karachi, and has supplied hundreds of engineers and other technicans to oversee the construction of the port. The construction of the port has been made difficult by armed opposition from Baloch nationalist groups. Because of its location (in Baluchistan, bordering Afghanistan to the northwest and Iran to the southwest) the port is seen as having strategic importance for Pakistan, which has several times seen its Karachi port under threat of blockade during periods of heightened tension with India.

http://www.nbr.co.nz/home/column_article.asp?id=14470&cid=4&cname=Business+Today

2

Re: Pakistan to sign Dubai Ports World for Gwadar port

**New railway track for Gwadar port in Pakistan Shortly **

Pakistan Railways (PR) will lay a new track from Gwadar connecting with existing rail network at Quetta-Kohi Taftan Section to enhance trade activities at Gwadar Port. Minister for Railways, Mian Shamim Haidar said on Friday that the new track will serve for the people to and from Iran and Afghanistan and Central Asian Republics. He said the rail link will commence from Gwadar and would pass through Turbat, Hushab, Panjgoor, Nag, Besima, Surab and Kalat before reaching the last destination Mastung. Shamim Haidar said the route also runs through the central portion of Balochistan where a number of district roads would provide opportunity to the local people to reach the nearest Railway Station. He said the project would provide the required strength and economic boost to the future projects in Balochistan. Feasibility Study. The Minister said a detailed feasibility study was also carried out by Pakistan Railways through M/s Engineering Associates. On the basis of the feasibility report, he said, PR would earn Rs. 3 billion per annum from passengers and freight transportation which would be increased with the passage of time adding over Rs. 70.63 billion would be spent on this project. When asked, the Minister said, “being a deep water port, Gwadar will become a regional hub and a vital link to Central Asian Republics, thus attracting the transit trade,” he added. To a question, Shamim Haidar said, “We are committed to provide speedy, timely and latest transport facilities to railways customers and taking a number of steps in this regard.”

http://paktribune.com/news/index.php?id=136194

3

Re: Pakistan to sign Dubai Ports World for Gwadar port

Think this is a bad idea.. Dubai based compaines pose a serious coflict of intrest.... They are probably going to be biased towards their home port at the expense of Gwadar..

4

Re: Pakistan to sign Dubai Ports World for Gwadar port

^significant point PP.

5

Re: Pakistan to sign Dubai Ports World for Gwadar port

I think Pakistan need a significant amount of change in its business activities and as long as we let the foreign companies do business in our country and make them feel that it's safe doing business with Pakistan. I am sure it will drag alot of wealth and business in Pakistan by creating new jobs in the homeland. So I think it is a great idea to have a foreign company run our port. Look around us not many Foreign companies feel safe doing business in our premises and if we set some examples of some companies like Dubai's port company doing business here and making enormous amount of profit with out any danger. I think it will interest some other companies to come and do great business with us. National economical system make less money than Globalization economical system and we have a great example of United States of America. They let the other trustworthy corporations to do business with in their premises by creating more jobs and in return their Capitalist invest million of dollars in other countries. THeir system of business is globalized which give them enormous amount of opportunity and wealth of knowledge and modernize them.

6

Re: Pakistan to sign Dubai Ports World for Gwadar port

DPW “operates” terminals and does not run the port security nor it replaces the government of the port city. There is nothing wrong with the deal. Come to think of it, DPW deal is same as giving Emirates a separate terminal at Karachi airport.

However it is a shame that Karachi’s troubles have degraded Pakistani companies and their role in the shipping business. Hopefully soon these guys would change their prirorities from cartoonish protests.

7

Re: Pakistan to sign Dubai Ports World for Gwadar port

If that was the case then they Dubai ports would not even want to invest in Gwadur or any other port in the world.

8

Re: Pakistan to sign Dubai Ports World for Gwadar port

DP World is not a bad idea. Only time can tell the merits of DP World, for now we should look forward to DP World operating Gwadar Port.

9

Re: Pakistan to sign Dubai Ports World for Gwadar port

It is quite an achievment that we can attract such big investors like DP.

10

Re: Pakistan to sign Dubai Ports World for Gwadar port

Dubai Ports World may bid close to $1 billion for phase 2 of Gwadur.

DPW may bid for Gwadar phase-2

DP World is expected to bid for the $865 million phase two of the new deepwater port of Gwadar built in Pakistan’s Balochistan province with Chinese collaboration, according to shipping industry sources. Last month Pakistan has approved the start of negotiations with DP World as a potential operator of Gwadar. The total cost of the project is estimated at $1.6 billion, of which China has contributed about $198 million for the first phase, almost four times the amount Pakistan has contributed for this phase. China has invested another $200 million to build a highway connecting Gwadar Port with Pakistan’s largest city, Karachi, itself a port. The Pakistani government has already finalised plans for the second phase of the port to be built by the private sector. It will have three container terminals with a quay length of two kilometres, a bulk cargo terminal, a grain terminal and an oil terminal. The Gwadar Port Implementation Authority is expected to begin negotiations with prospective operators soon before calling for official tenders. The government proposes to operate Gwadar as a free port along the lines of Jebel Ali terminal. The second phase, which will have nine more berths, an approach channel and storage terminals, is also financed by China. DP World was among companies that expressed interest in operating the port’s $300 million first phase, which was completed with a Chinese loan in April last year. Other companies in the running include DP World’s arch-rivals Hutchison Port Holdings of Hong Kong and PSA International of Singapore. Although Hutchison already operates the two-berth Karachi International Container Terminal in Pakistan, DP World is considered the favourite, according to shipping industry observers.

The port’s first phase has three multipurpose berths with a quay length of 600 metres, a 100 metre service berth and a 4.35 kilometre long navigation channel that has a draught of between 11.5 metres and 12.5 metres, depending on the tidal situation. The channel is being dredged to 14.5 metres to allow the latest generation container ships to call the port. According to shipping experts, handling over operations to an international operator would help to develop Gwadar as a regional hub. Its strategic location as the southern extension of Pakistan into the Arabian Sea allows it to be the ideal egress gateway for transit traffic into the landlocked Central Asian republics, Afghanistan and Iran. Pakistan Railways, meanwhile, is carrying out a feasibility study for building a railway line from Gwadar to the Afghani border. Pakistan invited international bids early last year to operate its new deepwater multipurpose port at Gwadar.

http://www.khaleejtimes.com/DisplayArticle.asp?xfile=data/business/2006/March/business_March439.xml&section=business&col=

11

Re: Pakistan to sign Dubai Ports World for Gwadar port

So what will DP World be doing in Gwadar?

http://www.tmcnet.com/usubmit/-long-wait-almost-over-as-strategically-placed-gwadar-/2006/03/22/1481549.htm

Terminal facilities for container, general cargo and bulk cargo handling have already been created and it is expected that these will be operated by DP World of Dubai.

hey buddies! m new here!
12

Re: Pakistan to sign Dubai Ports World for Gwadar port

DPW is only following China (and others) which has already made such huge financial investments in Gwadur, and is continuing to do so.

Pakistan, China sign accord for Gwadar port

BEIJING: A credit agreement for $22.26 million for additional dredging of Gwadar deep-sea port project was signed here on Friday. The agreement was inked by Ambassador Salman Bashir and Ms Liang Xiang, Assistant President EXIM Bank of China. Extra dredging would enable 50,000 DWT vessels to utilise the Gwadar port. The development of Gwadar port is a shining example of Pakistan-China cooperation and it is expected to be ready for operation later this year. Liang also assured the Ambassador that they would continue to actively support other major economic projects in Pakistan. The ambassador expressed gratitude of his government for the valuable support of China to Pakistan’s economic development. Meanwhile, sources told APP the port will be functional after completion of additional dredging of the channel to 14.5 meters, making it the deepest port of Pakistan and trans-shipment port for the region. The dredging of Gwadar Port channel to 14.5 meters, which has been undertaken by a Chinese company, will make it a regional hub, as it will enable the port to receive the mother vessels. The cargo dropped by the mother vessels will be taken to Karachi and other regional ports by the feeder vessels or trucks.

http://www.jang.com.pk/thenews/mar2006-daily/25-03-2006/business/b2.htm

13

Re: Pakistan to sign Dubai Ports World for Gwadar port

Pakistan, UAE May Discuss Gawadar Port Concession During Maktoum Visit

ISLAMABAD, 28 May 2006 — Sheikh Muhammad Rashid Al-Maktoum, vice president and prime minister of United Arab Emirates and ruler of Dubai, will visit Pakistan this week, Pakistan’s Foreign Office announced yesterday. A source in the office said that Pakistan would discuss with the UAE ruler the possibility of a concession to operate Pakistan’s multi-billion second deep-sea port at Gawadar. Dubai Ports World has already expressed interest in getting operating rights to the Chinese-built port located on the hub of Hurmoz in Pakistan’s southwestern province of Balochistan. Maktoum will hold meetings with President Pervez Musharraf, Prime Minister Shaukat Aziz and several federal ministers during his stay in Islamabad. He will also hold meetings with Minister of State for Board of Investment Omar Ghuman and Chairman Privatization Commission.

http://www.arabnews.com/?page=4&section=0&article=82850&d=28&m=5&y=2006

Please welcome you new mod k337
14

Re: Pakistan to sign Dubai Ports World for Gwadar port

DPW close to securing the Gwadar deal

DP World, a subsidiary of Dubai World, is likely to win the bid to take over the management of Pakistan’s Gwadar Port, following the exit of Hutchison Port Holdings of Hong Kong from the race. Following the unveiling of Dubai World’s $10 billion investment plan, officials from both sides are reported to have made good progress in finalising the agreement to give DP World operational management of the deep-sea port built with Chinese assistance. Commodore Munir Wahid, project director of the Gwadar Port Implementation Authority however declined to say how much DP World might pay for the deal which is expected to reinforce the Dubai-based company’s position as the world’s third-largest container port operator, Apart from Hutchison Port Holdings, other bidders for the project include PSA International of Singapore, Globe Marine Services of Saudi Arabia and Pakistan International Container Terminal.

The Dubai operator has also bid for the port’s $865 million phase-II that will add nine more berths, an approach channel and storage terminals. It will have three container terminals with a quay length of two km. DP World was among five companies that had expressed interest in operating the first phase of the port, which was completed with a Chinese loan in April last year.
The total cost of the Gwadar project is estimated at $1.6 billion, of which, China has contributed about $198 million for the first phase. Pakistan has contributed $50 million to finance the first phase. China invested another $200 million to build a highway connecting the port with Karachi. According to sources close to the deal, terms of reference prepared by DP World include major conditions that deal with the corporate structure and matters related to operation, tariffs, and financial powers as well as development of infrastructure, including nine new berths on the east bay of the port. With regard to development of new berths, the operator seeks first-right of refusal. Under this demand, a prior approval would be sought from the DP World in case Pakistan leases or develops new jetties. DP World has sought 30 years lease for the site and the port which could be renewable for two more terms of 10 years for which the option will lie with the operator. Pakistani sources said DP World has sought full powers over shareholding of the port company to be held by them or any other strategic investor chosen by them. It has further laid down a condition where management control will be fully with DP World and the government will have no control over the management and policies of the port.

It is learnt that DP World is seeking full control over development, finance, design, building, management and operations of those nine jetties to be built under phase II and have the right to cap the capacity utilisation. It also seeks the right of levying and collection of port tariffs and demanded that tariffs would not be higher than Karachi Port and the Port Qasim. Pakistan sources said DP World is a favourite contender for the Gwadar port because its integrated port management model brings together container terminals, other cargoes, free zones, infrastructure developments and consultancy services.
According to shipping industry experts, the Gwadar Port could be used as corridor for energy supply to China. It will serve as an energy corridor for Pakistan, China and India.

http://www.khaleejtimes.com/DisplayArticleNew.asp?xfile=data/business/2006/June/business_June51.xml&section=business