Is CPEC Development Focus Shifting From Gwadar to Karachi?

[Riaz Haq]

China has agreed to invest $3.5 billion in Karachi, according to Pakistani and Chinese officials. In a separate announcement earlier, Saudi Arabia said it is moving its planned $10 billion petrochemical complex from Gwadar to Karachi.  These announcements have triggered speculation that the focus of development of China Pakistan Economic Corridor (CPEC) is moving from Gwadar to Karachi. 

Karachi Port, Pakistan

The Karachi project dubbed "Karachi Coastal Comprehensive Development Zone project" or KCCDZ    includes additional new berths to Karachi port, development of a new fisheries port and a 640-hectare special economic zone near the port. The project also envisages building a harbor bridge connecting the port with the nearby Manora islands, according to Nikkei Asia. 

Gwadar Port City

Saudi decision to shift the $10 billion petrochemical plant from Gwadar to Karachi was triggered by the fact that there is no oil pipeline nor a rail line planned to support it at Gwadar. Karachi already has well-developed roads, rails, telecommunications and pipeline infrastructure for connectivity with the rest of the country. 

Map of Submarine Cable Connections to Karachi, Pakistan. Source: Te...

There are 10  submarine cables currently connecting or planned to connect Pakistan with the world: TransWorld1, Africa1 (2023), 2Africa (2023), AAE1, PEACE,  SeaMeWe3, SeaMeWe4, SeaMeWe5, SeaMeWe6 (2025) and IMEWE. PEACE cable has two landing stations in Pakistan: Karachi and Gwadar. SeaMeWe stands for Southeast Asia Middle East Western Europe, while IMEWE is India Middle East Western Europe and AAE1 Asia Africa Europe 1. PEACE cable is the latest. It is a privately owned submarine cable that originates in Karachi, Pakistan and runs underwater all the way to Marseilles, France via multiple points in the continent of Africa. 

Gwadar East Bay Expressway, Pakistan

China already has a lot invested in Gwadar.  Krzysztof Iwanek, head of the Asia Research Center at Warsaw's War Studies University, told Nikkei that the challenges of developing a major port in an underdeveloped area like Gwadar must have been factored in by China from the outset. "[I]t may be assumed that Chinese involvement in Gwadar may be at least partially strategic. Karachi, in turn, is Pakistan's most important port, and, hence, Chinese involvement there may be of purely economic nature," Iwanek said.

My own view is that Gwadar remains very important to China for strategic reasons. Gwadar sits very close to the strategic Strait of Hormuz that is used by tankers carrying the bulk of China's and the world's energy imports.  Karachi is the fastest and most economical route to making CPEC operational but it does not diminish the long-term importance of Gwadar for China. 

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[Riaz Haq]

Maersk Commits $2 Billion to Boost Pakistan's Port and Transport Infrastructure - Global Trade Magazine

https://www.globaltrademag.com/maersk-commits-2-billion-to-boost-pa...

Danish shipping giant Maersk has announced a significant $2 billion investment in Pakistan’s port and transport infrastructure over the next two years. This investment aims to contribute to the country’s infrastructure development and drive economic growth, according to a state-owned news agency.

As part of this initiative, Pakistan’s Minister for Maritime Affairs, Qaiser Ahmed Sheikh, is scheduled to visit Denmark this month to sign a Memorandum of Understanding (MoU) between Maersk Shipping Company and Karachi Port Trust.

Qaiser Ahmed Sheikh emphasized that Karachi holds immense potential to increase exports, and the Ministry of Maritime Affairs is committed to creating a conducive environment for the business community to capitalize on this opportunity.

This announcement follows the recent commitment by Abu Dhabi Ports Pakistan CEO, Khurram Aziz Khan, who unveiled a $250 million investment in Karachi Port over the next decade during a meeting with Prime Minister Shehbaz Sharif. Khan also outlined plans for a $130 million investment in a state-of-the-art multipurpose terminal, expected to be completed within two years. Enhancements to the container terminal facility at Karachi Port will include automated gates, an expanded berth, a crane rail track, and additional infrastructure upgrades.

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Pakistan has recently received several investments in its ports, including: 

• Abu Dhabi Ports

  Announced a $250 million investment over 10 years in Karachi Port to upgrade the facility. The investment includes a $130 million multipurpose terminal that will be completed in two years. The new terminal will allow cargo ships up to 120,000 tons to dock at the port. 

   

  https://www.dawn.com/news/1846749#:~:text=ISLAMABAD:%20Abu%20Dhabi%...
• Maersk

  Announced a $2 billion investment over two years in Pakistan's port and transport infrastructure. The investment is intended to boost the economy and develop infrastructure. 
• https://www.supplychainbrain.com/articles/40228-maersk-to-invest-2b...

  China Overseas Port Holding Company

  Plans to spend $4.5 billion on infrastructure for the Gwadar Port and the China–Pakistan Economic Corridor. The special economic zone will include manufacturing zones, warehouses, logistics hubs, and display centers. 

[Riaz Haq]

Karachi to Sukkur motorway construction to commence in 2025

https://arynews.tv/karachi-to-sukkur-motorway-construction-to-comme...

ISLAMABAD: Federal Minister for Communications, Aleem Khan, on Wednesday has announced that the construction of the Karachi-Sukkur Motorway will commence in 2025, ARY News reported.

Addressing a meeting in Islamabad, Aleem Khan said that the motorway will connect Karachi Port to Sukkur, providing a vital link between the country’s north and south.

According to Khan, the motorway’s construction will be undertaken through a public-private partnership, with the government inviting the Sindh government to participate in the project. If a partnership is not established, the federal government will bear the costs of the project.

He said that once completed, the Karachi-Sukkur Motorway is expected to generate a revenue of Rs. 3,000 billion over the next 25 years.

Earlier, the Sindh government and Centre agreed to construct the M6 Motorway on a separate track from Karachi to Sukkur, instead of initiating it from Hyderabad to Sukkur.

They also agreed to explore the possibility of building the motorway through a public-private partnership (PPP) or through a consortium to be formed by the Sindh and federal governments.

[Riaz Haq]

Pakistan’s Maritime Vision: Transforming Gwadar Into A Global Trade Hub – OpEd – Eurasia Review

by Dr Sahibzada Usman

https://www.eurasiareview.com/07032025-pakistans-maritime-vision-tr...

In order to make Pakistan a global maritime hub, the country is developing its major ports such as Karachi, Port Qasim and Gwadar on massive infrastructure development program. Presently, Pakistan’s ports are working at 50 per cent of their potential capacity, resulting into inefficiencies that are stifling further trade expansion. Pakistan’s investment in deep sea facilities, container terminals and modern logistics is aimed at bringing port capacity to maximum and improving its trade operations. To increase port efficiency, the government intends to make the port digitalized, automated, and have an improved cargo handling mechanism to house giant vessels of up to 20,000 containers.

Especially, Gwadar is the focus of these modernization efforts. Given this, Gwadar is set to become a regional transshipment hub for achieving regional trade needs in Asia, Middle East and Africa, as Gwadar is an important economic driver supported by the China Pakistan Economic Corridor (CPEC). Free zones, warehousing facility, integrated customs management system are some of the serious infrastructure upgrades the port is undergoing to facilitate seamless trade operations.

Being situated between Arabian Sea and having good access to global trade routes, Pakistan has the potential to become one of the regional trade powerhouses. And, for the government of Azerbaijan the maritime sector is identified as a key driver for economic growth and the country’s geographic advantage is to be used in order to create the trade connectivity with Central Asian Republics (CARs), Gulf States and beyond. Investment in modern transport corridors, rail networks and road infrastructure linking Gwadar with regional markets will allow Pakistan to become a gateway to trade around the world.

Moreover, Pakistan’s maritime vision is aimed at growing exports from $32 billion to $60 billion by using ports to maximum capacity. The country can reduce the related logistics costs, and improve port efficiency to give local exporters a competitive advantage that will create a more favorable ease of doing business and increase participation in international trade.

In order to sustain in the long term, attracting foreign direct investment (FDI) in maritime sector of Pakistan is essential. The government is planning policies to make Pakistan’s port infrastructure more investor friendly with increasing global interest in Pakistan’s port infrastructure. They encourage the development of Special Economic Zones (SEZs) near ports, tax incentives for shipping companies and public private partnership in logistics and maritime industries, for the purpose of economic growth.

[Riaz Haq]

Karachi to get new road for heavy traffic

https://timesofkarachi.pk/60700-karachi-to-get-new-road-parallel-to...

A new 25-kilometer road will be built parallel to the Lyari Expressway to facilitate heavy traffic movement in Karachi.
The project aims to allow trucks and trailers to pass through the corridor 24/7, reducing congestion in the city. According to reports, Exim Bank Korea has granted funds for the construction of this additional road.

A feasibility study for the project will be completed within eight months, after which the construction work will begin.

Last month, the Sindh government launched a crackdown on unfit commercial vehiclesfollowing a rise in fatal road accidents.

On the directives of Senior Minister Sharjeel Inam Memon, the Transport Department has directed authorities to take strict action against unfit vehicles operating across the province.

According to the department, many commercial vehicles in Sindh have fitness certificates issued by Motor Vehicle Inspectors (MVIs) from other provinces without proper physical inspection.

This loophole has allowed unsafe vehicles to operate on Sindh’s roads, increasing the risk of accidents.

Minister Memon stated that vehicles registered in other provinces but operating permanently in Sindh must now obtain fitness certificates from Sindh’s MVIs.

These certificates will include modern security features such as QR codes. Additionally, all commercial vehicle drivers must hold valid driving licenses.

At the time of issuing or renewing route permits, transporters will be required to present valid fitness certificates with QR codes to ensure compliance.


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First segment of Karachi’s Malir Expressway to be opened on Saturday - Pakistan - DAWN.COM

https://www.dawn.com/news/1883773

KARACHI: Sindh Chief Minister Syed Murad Ali Shah on Tuesday set Jan 11 as the final date for the inauguration of the first segment of the Malir Expressway project that runs from Korangi Caus­eway to Shah Faisal Colony.

This decision was taken during a high-level meeting chaired by CM at New Sindh Secretariat, where the project’s final progress was reviewed, said a press statement issued.

Only commercial vehicles, cars, jeeps and buses will be permitted on the expressway, while motorcycles and rickshaws are not allowed on the expressway.

The CM emphasised the importance of efficient traffic management and directed officials to promptly address any operational challenges to ensure the timely completion of ongoing works.

The meeting was informed that the first segment would feature a ramp to facilitate immediate traffic flow and would be complemented by a connecting flyover from Korangi, which is expected to be completed within two months.

The construction of the Jam Sadiq Interchange and road rehabilitation projects at the EBM and Shah Faisal Interchanges are progressing steadily. Encroachments at the Quaidabad Interchange have been cleared and construction is ongoing to enhance connectivity, the statement said.

The CM directed law enforcement agencies to deploy district and traffic police at key entry and exit points, including the Jam Sadiq, EBM and Shah Faisal interchanges.

The traffic police will patrol both sides of the expressway continuously in vehicles. Dedicated traffic police will be present on the expressway to ensure proper traffic flow.

To ensure smooth operations, the CM declared the stretch from Shah Faisal Interchange to the Shah Faisal Colony Bridge as a no-parking zone.

Spanning 40 kilometres, the expressway connects Korangi Creek Avenue to the M-9 Moto­rway near Kathore, offering a critical link for commuters and significantly reducing