中国海外港口控股有限公司CHINA OVERSEAS PORTS HOLDING COMPANY PAKISTAN（PVT）.LTD.

1) Introduction of COPHC.

2) Port Development

3) Free Zone Development

4) CSR

5) Schedule and Plan

6) Challenges and difficulties

G A T E W A Y T O T H E

G L O B A L O P P O R T U N I T I E S

China Overseas Ports Holding Company Ltd. (Pakistan)

Gwadar International Terminals Ltd.

(GITL)

Gwadar Marine Services Ltd.

(GMSL)

Gwadar Free Zone Company Ltd.

(GFZL)

• The Concession Agreement (CA) for Gwadar Port & Free Zone was signed in 2007 on BOT basis

with PSA (Port Singapore Authority).

• This CA was transferred to COPHC in May 2013 without any single modification.

• To Develop and Operate Gwadar Port & Free zone, three (3) operating companies were formed.

01

02

Port Development

Port Facilities

• Since the concession were handed over to COPHC , we have been working

on improving port facilities, surrounding environment and port business ；

• By 2018, COPHC had invested $50 million for port facilities upgrading.

Port Environment Port Business

5 STS Systems

65000m2 stockyard

1000 tons/day

desalination system

Bulk-cargo load

system

10000 m2 Green

area

Port renovation

including tugboats,

warehouses &

roads

Container shipping-

line(Weekly)

Sign agreements with

the Gwadar Seafood

Exporters Association,

All Pakistan Customs

Bonded Carrier

Association and FPCCI.

Main Quay Length = 602 m

Depth Alongside = -14.5 m

3 multi-purpose &1 RORO Facility

Channel depth =-14.2m / -13.8 m

Permissible Vessel draught -12.5 m

CURRENT FACILITIES AND INFRASTRUCTURE

2 Tug-boats

2 Pilot boats

1 Mooring boat

Power-house (4.5 MW)

Water desalination plant

Fueling facility

Warehouse (3800 sqm)

Storage area (100 ha )

400 Reefer Points

Operations buildings

Workshops

03 Ship to Shore Gantry Cranes

5 Portal cranes with Grabs / spreaders

2 RTG Cranes

2 Mobile Cranes

2 Empty Stackers

8 Hoppers

8 Bagging Plants

10 Terminal Tractors

12 Fork-lift Trucks

2 Bull-dozers

2 Fire-fighting trucks

1 Oil tanker

2 Weighbridges

CCTV Fuel Station

Desalination Plant Container Storage Area

Maintenance of two Port Cranes (40tons) and two RTGs (40tons)

Gwadar Port has achieved its full operational capability. It can

accommodate two 50,000-ton vessels simultaneously and handle bulk-cargo,

general cargo, containers and RORO efficiently.

Port Cranes Port Cranes

2.1 Port Operation

2.1 Port Operation

After five (05) new STS cranes are currently in operation, The terminal

handling efficiency has greatly improved.

NEW ADDITIONS AT GWADAR INTERNATIONAL TERMINAL Ltd. (GITL)

Desalination plant

With the success rehabilitation of the existing 500 T/D desalination plant,

upgrading has been done and the capacity has been increased up to 1000T/D.

2.2 Port Operation

Consistent vessel calls of General cargo from various shipping lines, catering

import cargo mostly for Freezone, Port & CPEC project construction.

13th Nov ’16, the first container export from Gwadar Port of CPEC

make its mark on the trade routes.

Pilot project end point of CPEC i.e. GWADAR port, where it was loaded on 02 vessels on 12th Nov, namely COSCO Wellington and Al-Hussein which are heading to Colombo and

Jebel Ali respectively.

The cargo was loaded on the ships by using port cranes in day and night

operations.

Operationalization of CPEC via Trade Convoy

• Various seminars, activities have been organized to promote Gwadar Port. COPHC signed the

agreements of importing & exporting Bulk cargo and containerized volumes, LPG & RORO

trade with cargo owners. Invitation to utilize Gwadar Port for Afghan transit trade, whereas

coal import have been forwarded to the Authorities for consideration.

2.3 Port Business

2.4 Port Operation

On 07th Mar 2018, the container liner service at Gwadar Port was formally launched.

The route was named as “Pakistan Gwadar Middle East Express”. It is operated by

COSCO Shipping. It will use Jebel Ali, Karachi and Abu Dhabi as transit ports, and

connect almost all the important international ports of the word. This milestone has

created many opportunities for cargo owners to trade directly from Gwadar port.

COPHC heavily subsidizing this service on each vessel call since its commencement.

In respect of the concerns of cargo owner and potential customer A more

aggressive marketing strategy established:

1, Competitive handling charges

2, Assurance of NO demurrage charge

3, Assurance of security and safety of cargo

4, Speedy custom clearance

5, Free storage up to 3 months by pre-arrangement

6, Land transport security

2.5 Port Operation

May. 30th 2018

May.30th ,2016

03Free Zone Development

With the investment of over

$250 million, COPHC has

successfully completed the

infrastructure of Gwadar Free

zone (phase-1) in the most

remarkable time (end of 2017).

In these infrastructure, the

investors are assured to avail the

24 hours of power supply,

treated water consumption, road

network, tele-communication,

waste treatment, drainage

system, high security and

pleasant environment.

3.1 Construction

Infrastructure mainly includes:

• One window service facility

• Water supply and drainage

• Uninterrupted Power supply

• Telecommunication with WIFI

• Road network

• HVAC engineering

• Sanitation and garbage collection

• Parking yard

• Fire fighting facilities

• Security management and control

• Customs clearance facility

• Green environment

3.2 Free Zone Inaugration

On 29th Jan 2018, the Gwadar Free Zone was formally inaugurated officially

indicating that the first industrial park of CPEC came into the era of

industrialization.

•Investment promotion work in the Initial Area is

completed.

•More than 20 enterprises, involving banks,

insurance, financial, warehouses, fishery products

processing, edible oil processing, pipe, furniture

manufacturing, electric bicycle assembly, trade and

logistics, have already registered in GFZ.

•The total investment exceeds 3 billion RMB.

3.3 Business Insight

Gwadar Free Zone also attract

many Pakistan enterprises:

At present,

HBL bank, UBL bank, Askari Bank

EFU insurance company,

PAK Delight food company,

Jolta technology company ，

Pak-Afghan Cargo services Co,

have registered in Free Zone.

3.4 Business Insight

3.4 Business Insight

Registered Enterprises under Gwadar Free Zone Phase#1:

Company ProjectConstruction area

(sqm)

CCCC Business Center 25000

Linyi Overseas Mall Products display and storage 22500

Yufei Marine Services & Technology Cold storage and fishery processing 32600

Pakistan Delight Food Co. Edible oil pressing 10000

Pakistan JOLTA Tech Co. Electric bicycles and motorcycles 5000

Zhejiang Litchi Stainless Steel Tube Factory

Steel Pipe factory 10000

Tianjin Cereal & Oil Trade Co. Palm oil, canola oil, soybean oil 22000

Ningbo Huilong RecyclingResources Tech Co. Metal recycling 22000

Harmony Logistics (tianjin)Co.,Ltd Furniture 2000

3.5 Gwadar Expo 2018

COPHC and GPA have initiated series of events by organizing ‘GWADAR EXPO 2018’ on

January 29th and Mineral Expo on 29th of Sep. in Gwadar Free Zone. Through this expo,

Gwadar has achieved rapid growth and development under the strong leadership from

China and Pakistan. Gwadar Expo has attracted various Local and International investors.

More than 30,000 people visited the event and more 200 companies have participated as

exhibitor.

Besides providing infrastructure and property management services for

investor, we also offer a full range of services, such as visa application,

travel arrangements, security, business registration, legal consultation,

project financing, and market research.

3.6 Business Promotion

May.2nd 2016

Jan.29th 2018

04

Security and C.S.R

4.1 Integrate With The Local Community

4.2 C.S.R.—Local Employment

Young Baloch(s) are key players in developing Gwadar, more than 1, 000

Baluchi, From senior officers to general laborers, from fresh out of college to

old and experienced, men and women-all directly employed in Gwadar port

and Free Zone. These are not people outsourced, contracted. But a part of a

family that is growing each day.

4.3 CSR – Education (scholarship)

By closing cooperation with CPDF and Chinese Embassy,COPHC has constructed one school (with 500 students) inGwadar, offered 56 scholarships to local graduated studentsstudying in china.

COPHC Scholarship

4.3 C.S.R. —Education

【PAK CHINA FAQUEER COLONY SCHOOL】

For Medical Center operation,

COPHC cooperate with China

Medical Team and Red Crescent PAK.

providing Medical treatment and

medicine to local people for free.

4.4 C.S.R. —Public Health

During Gwadar Expo 2018, COPHC has signed the agreement with District

Council of Gwadar on local poverty relief Area. (including 14 poor family)

4.5 C.S.R. —Poverty Relief

China Overseas Ports Holding

Company initiated a poverty relief

program in Gwadar city by carrying

out some Local Employment

Oriented Projects. The initial projects

are:-

• Plantation of 1 million trees

• Construction of fresh water tank

• Fresh water pipeline

• Chicken/Goat farms

These projects will be funded

exclusively by COPHC.

4.5 C.S.R. —Poverty Relief Program

On 6th May 2018, COPHC signed the agreement with the Balochistan

government to provide 300,000 gallons freshwater to local people every day.

On 15th May 2018, Senate Chairman Sadiq Sanjrani attended and witnessed

the launch of the freshwater supply ceremony.

4.6 C.S.R. —Freshwater Supply

05 Schedule and Plan

5.1 Port Expansion PlanPhase I: The storage yard will be rebuilt and expanded with an area of 38.3ha;

Phase II: One 100,000 general-purpose berths of 352m, of which the 322m structure on

the west side is 100,000 tons, and the 30m structure on the east side is 200,000

tons; A 150,000-ton coal berth of 355m, with structure set aside at 200,000

tons; land area 51.3ha;

Free zone

Long Term Planning

Phase IIPhase I

NORTH FREE ZONE

NORTH FREE ZONE

自由区北区规划图 NORTH FREE ZONE

06Challenges and difficulties

6.1 Infrastructure (water, travel, communication, power)

Water and Power

Road, rail and air

connections

Fiber-optic cable

Shortage of

qualified staff

High Operation Cost

First and foremost, we would like to express our sincere gratitude

for the continuous support & cooperation provided by the

Pakistani Government for the operationalization of Gwadar Port.

COPHC is making all-out efforts to equip the port with modern system. The Port is fully

operational with required infrastructure and ready to handle all types of vessel like

Containerize, Break-Bulk cargo, General cargo, RORO, tanker, liquid bulk etc.

Following comprehensive points are associated with the concern authorities matters

involved in non-operation of Gwadar Port for commercial purpose. In the light of following

mentioned points, we humbly request the concerned authorities for the consideration and

issuance of necessary approvals/ Notifications in this regard. We assure that this shall prove a

stepping stone for the prompt operationalization of Gwadar Port and shall help in making the

Gwadar port fully utilized which brings economic activities in Pakistan, particularly in the

province of Balochistan.

6.2 Applicable Incentives, Summary

Prompt Issuance of Gwadar Free Zone Rules & Policy for Customs Procedures:

Free Zone businesses are directly linked with the development of Gwadar Port. In order to establish businesses at Gwadar Free Zone, the Customs procedures should be clearly defined so that the investors can establish import and export activities for their respective businesses which includes import of machineries, equipment, raw-materials, export of finished goods etc. In spite of the fact that the draft rules were sent to FBR by the concerned collectorate during Feb/ Mar 2017 and were expected to be issued in July/August 2017. So far, twelve (12) licenses have been issued to the potential Free Zone Investors whose businesses are yet to be established due to the absence of FZ Rules.

Permission to import all commercial consignments acceptable under rules.

On 01st June 2018, FBR approved limited import of selected 20 items at Gwadar port. Since we are at the stage of developing the trade and economy, we feel that it should be more flexible instead of limitation.

6.3 Applicable Incentives, Summary

中国海外港口控股有限公司CHINA OVERSEAS PORTS HOLDING COMPANY PAKISTAN（PVT）.LTD.