Strategic relevance of Gwadar Port grows amid regional tensions

GWADAR: Gwadar Port’s strategic relevance has grown amid rising tensions in the Strait of Hormuz, with shorter access to Iran and Central Asia, lower operating costs and investor incentives strengthening its position as an alternative regional trade gateway, Gwadar Port Authority Chairman Noorul Haq Baloch said during a meeting with members of the All Pakistan Shipping Association in Karachi.

According to Mr Baloch, the port is increasingly being seen as a secure option for regional trade. He told the meeting that Gwadar could develop into a future centre for trade and logistics because of its modern infrastructure, comparatively low operational expenses and shorter trade routes.

He said the Gabd-Rimdan border route had emerged as an effective multi-modal corridor for expanding trade with Iran and Central Asia. During the meeting, Mr Baloch briefed APSA members on the regional situation, Gwadar Port’s strategic importance, and matters linked to transit and transshipment operations.

Mr Baloch said the port was gradually developing into a major regional trade and logistics centre and that its significance was increasing steadily. He noted that Gwadar’s approach channel is about 4.5 kilometres long, which he said is the shortest among the country’s ports.

He also said there is a trade route from Gwadar to Zahedan and onward to Central Asia. Referring to developments in 2015, he recalled that the first container convoy from China had successfully reached Gwadar Port through the Balochistan route, which he said demonstrated the port’s potential to connect China with Central Asia.

Alternative route and incentives

In the context of tensions in the Strait of Hormuz, Mr Baloch said Gwadar could function as a secure alternative trade route in the event of war or sanctions. He added that access from Gwadar to eastern parts of Iran and Central Asia is several hundred kilometres shorter than routes from other Pakistani cities, reducing both transport time and logistics costs.

He said investors and industrialists working in the Gwadar Free Zone are being offered tax exemptions and special incentives, including duty-free import of machinery and equipment. Mr Baloch added that import and export cargo handled at Gwadar Port is given up to 30 days of free storage, unlike other ports where storage charges are imposed.

He further said additional free storage is available at cargo sheds, container yards and repair sheds operated by the Gwadar Port Authority. According to him, these facilities are linked through a modern six-lane expressway connecting the port and free zone with the coastal highway.

Mr Baloch also said that a trade delegation from Iran is expected to visit Gwadar soon. He maintained that because of its strategic location, modern infrastructure and low operational rates, the port has strong potential to emerge as a major trade corridor for Pakistan’s economy.

Participants in the meeting showed interest in the facilities available at Gwadar Port, particularly those related to transit trade with Iran.