Understanding Economic Benefits of Trade-Corridor Between Gwadar-Kashgar INTERMODAL ... ·...

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Understanding Economic Benefits of Trade-Corridor Between Gwadar-Kashgar INTERMODAL Network Mr. Aasim Siddiqui Ex-Chairman, All Pakistan Shipping Association (APSA) & Managing Director – Marine Group of Companies presented by

Transcript of Understanding Economic Benefits of Trade-Corridor Between Gwadar-Kashgar INTERMODAL ... ·...

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Understanding Economic Benefits of Trade-Corridor Between

Gwadar-Kashgar INTERMODAL Network

Mr. Aasim SiddiquiEx-Chairman, All Pakistan Shipping Association (APSA) & Managing Director – Marine Group of Companies

presented by

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Population  184 Million

GDP US$ 310.42 Billion

Per Capita Income  US$ 1684

GDP Growth Rate  3.6 %

Imports US$ 40.19 Billion

Exports US$ 24.46 Billion

Foreign Direct Investment US$ 1.45 Billion

Major Crops Cotton, Wheat, Rice, Sugarcane.

Major Industries  Textile, Cement, Fertilizer, Steel, Agro Food 

Electrical Goods, Transport & Logistics

Seaports Karachi, Bin Qasim, Gwadar

Source: Economic Survey 2012‐13

PAKISTAN AT A GLANCE

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SEA

RAIL

KarachiPortTrust

PortQasimAuthority

GwadarPortAuthority

ROADNational HighwayAuthority

PakistanRailway

AIRCivilAviationAuthority

Government Bodies In Intermodal Network

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The Global Trade Of China - Imports

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The Global Trade Of China - Exports

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The Global Trade Of China – Container Traffic

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EUROPE11845 MILES

MIDDLE EAST5250 MILES

PAKISTAN4645 MILES

2000 MILES

2662 MILES

Shanghai Port  GwadarPort

AFRICA

EUROPE ASIA

2625 MILESMIDDLE EAST

WESTERN CHINA Kashgar

Europe – Western China (19132 miles)Middle East – Western China (12537 miles)

EXISTINGDISTANCE

LONG DISTANCE & HIGH COST 

The Global Trade Of China – Shipping Route

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EUROPE7847 MILES

MIDDLE EAST545 MILES

AFRICA

EUROPE ASIA

MIDDLE EAST

KashgarCENTRAL CHINA

Gwadar Port 

Europe – Western China (9535 miles)Middle East – Western China (10242 miles)

DISTANCESAVED

PAKISTAN - CHINAECONOMIC CORRIDOR

1750MILES

SHORT DISTANCE & LOW COST 

The Global Trade Of China – Shipping Route

1331 MILES

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The Global Trade Of China – Energy Transport

OIL IMPORTS

US$ 314 B I L L I O N

Source: International Trade Centre (2013)Source: International Trade Centre (2013)

OIL IMPORTS

US$ 314 B I L L I O N

OIL IMPORTS

US$ 314 B I L L I O N

Source: International Trade Centre (2013)

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Pakistan – China | Economic Corridor

1 HighwayGwadar – Kunjrab

2 MotorwayKarachi – Lahore

3 ExpresswayMuzaffarabad – Mirpur

4 Freight TrainsGwadar - Kunjrab

20US$ BILLIONWorth Development Projects

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N‐40

N‐70

N‐10

M‐8

DISPUTED TERRITORY

INDIA

AFGHANISTAN

IRAN

SKARDU

PESHAWAR

LAHOREFAISALABAD

MULTANQUETTA

SUKKUR

KARACHI

Pak – China Economic Corridor

Highway

Gwadar ‐ Kunjerab

KHYBER

FATEHJHANG

TAUNSA

MIANWALI

SUI

DERA BUGTI

LARKANA

ISA KHELPINDIGHEB

LAYYAH

RATODERONAGPANJGUR

HOSHABTURBAT

ani

DARYA KHAN

KUNDIAN

ATTABADJAGLOT

PARI

GORCHILAS

BESHAM QILA

MUZAFFARABADMANSEHRAABBOTTABAD

HARIPUR

MUSA KHEL

JAMPUR

RAJANPUR

DERA ALLAH YAR

GILGIT

ISLAMABAD

DG KHAN

KHUZDARJACOBABAD

GWADAR

KHUNJERAB

Length (Approx) 2,395 KmTerrain Mountainous, 

Rolling, FlatLanes 2‐6Lane width 3.65 mShoulder width 2 – 3 m (outer)

1 – 2 m (Inner)Design Speed 70 – 120 KphBridges, Tunnels and  Avalanche Galleries

2 ‐ 4 lanes

Estimated Cost Rs. 1,200 Billion

Pakistan – China | Economic Corridor

1 HighwayGwadar – Khujerab

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MotorwayKarachi ‐ Lahore

NANKANA SAHIB

SAHIWAL

JARANWALA

TANDLIANWALA

MAMUNKAJAN

PIR MEHAL

ABDUL HAKEEM

KHANEWAL

SHUJABAD

JALALPUR PIRWALAUCH SHARIF

TARINDA MUHAMMAD PANAHZAHIR PIR

RAHIM YAR KHANGHOTKI

PANU AQIL

KANDIARO

DADU

DUREJI

LAHORE

KARACHI

PIRJO GOTH

JOHI

MULTAN

DG KHAN

JACOBABAD

SUKKUR

HYDERABAD

Length (Appox) 1,186 KmTerrain Flat, Mountainous, 

Rolling Lanes 6Lane width 3.65 mShoulder width

3 m (outer) 1m (Inner)

Design Speed 120 KphTunnel To be determined 

after feasibility study

Bridges (Tentative)

6 Lanes over Indus, Ravi and Sutlej

Estimated Cost

Rs. 677 Billion

Pakistan – China | Economic Corridor

2 MotorwayKarachi – Lahore

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MUZAFFARABAD

CHATTAR KALAS

KOHALA BRIDGE

BURHA JUNGLE

MANGLA / MIRPURRAMKOT

DOLAI

AZAD PATTANPONA

THARBALATHI

DINA

ExpresswayMuzaffarabad ‐Mirpur

FATEHJHANG

PINDIGHEB

ISLAMABAD

Length (Approx) 196 KmTerrain Mountainous, 

Rolling Lanes 4Lane width 3.65 mShoulder width 3 m (outer)

1 m (Inner)Design Speed 120 KphBridges, Tunnels and  Avalanche Galleries

4 Lanes

Estimated Cost Rs. 75 Billion

Pakistan – China | Economic Corridor

3 ExpresswayMuzaffarabad – Mirpur

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Pakistan – China | Economic Corridor ASIAN HIGH WAY ROUTE MAP (ASIA)

Gwadar Karachi

INDIA

CHINA

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KarachiKarachi

LahoreLahore

KashgarChinaKashgarChina

GwadarPakistanGwadarPakistan

Ministry of railways incooperation withChinese Consortiumwill establish Gwadar-Khunjrab Rail Link atan estimated cost ofover

US$ 2.3 Billion

Bin QasimBin Qasim

KhunjrabPakistanKhunjrabPakistan

Track Access Project (rail route for private sector)

Regional Connectivity(with Afghanistan)

Regional Connectivity(with India)

Regional Connectivity(with China)

Regional Connectivity(with Iran)

4 Freight TrainsGwadar - Kunjrab

Pakistan – China | Economic Corridor

QuettaQuetta

PeshawarPeshawar

Dera Ismail KhanDera Ismail Khan

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Pakistan IntermodalLtd. (PIL) will bePakistan’s First PrivateTrain Operator, tofacilitate efficient andcost effective freightmovement betweenPak-China EconomicCorridor through itswell establishedintermodal networkacross Pakistan.

LahoreLahore

KashgarKashgar

Bulk Terminal

Inland Container Depot

A Marine Group ProjectI n t e r m o d a l   I n i t i a t i v e

KhokaraparKhokarapar

WagahWagah

TorkhamTorkham

ChamanChaman

Kho‐i‐TaftanKho‐i‐Taftan

KunjrabKunjrab

Regional Connectivity(with Afghanistan)

Regional Connectivity(with India)

Regional Connectivity(with China)

Regional Connectivity(with Iran)

Pakistan – China | Economic Corridor

PIL Freight Route(rail track for private sector)

Container Terminal

PeshawarPeshawar

Karachi PortKarachi PortGwadar PortGwadar Port Port QasimPort Qasim

Daud Khel Lala Musa

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Pakistan – China | Economic Corridor

Bulk Terminal

Stevedoring

Container Terminal

Freight Forwarding

Ship Called At Ports

Inland  Container Depot

Hinterland TRANSPORT

Road Transport

Freight Train

Clients

Shipping SERVICES

PortSERVICES

INTERMODAL SERVICE INFRASTRUCTURE

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Pak‐China Trade will crossUS$ 15 Billion by

0.000.501.001.502.002.503.003.504.004.505.00

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

0.26 0.28 0.41 0.55 0.67 0.66

1.21

1.65

2.09

2.70

1.14

1.53

2.012.32

3.032.71

3.28

4.14 4.28

4.73Exports US$ BillionImports US$ Billion

THE FUTURE OF ECONOMIC CORRIDORA WIN-WIN SYNERGY FOR PAKISTAN & CHINA

Pak‐China Trade Over Years

Source: State Bank of Pakistan – Trade Statistics

Pak‐ChinaFree Trade Agreement Signed

2015

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THE FUTURE OF ECONOMIC CORRIDORA WIN-WIN SYNERGY FOR PAKISTAN & CHINA

A Congenial Legal FrameworkThe cross‐border trade between Pakistan and China would require a congenial custom policies and regulations soas to encourage the business community in the both the countries to actively take part in the growth anddevelopment of this economic corridor.>

Efficient Freight VillagesIdeally the facility will be located close to a major metropolitan areas both in China and Pakistan which will also serve as a market or supplier of much of the goods that pass through. A freight village can raise the likelihood that smaller firms utilize intermodal transport and opportunity for shared services is potentially very large and can range from those associated strictly with the movement of goods to those associated with serving the nearby residential population.

>

Transport Service OpportunitiesTransport companies can explore more avenues of business and seek opportunities in the new markets throughjoint ventures and investments in this economic corridor

Transport Service OpportunitiesTransport companies can explore more avenues of business and seek opportunities in the new markets throughjoint ventures and investments in this economic corridor>Establishing Inland Container Depots (ICDs)The Pak‐China economic corridor will bring huge volume of cargo to and from China & Pakistan and will requirefreight stations at various locations to bring port services closer to shippers in the hinterland through specializedrail‐road services and decongesting the cargo traffic.

Establishing Inland Container Depots (ICDs)The Pak‐China economic corridor will bring huge volume of cargo to and from China & Pakistan and will requirefreight stations at various locations to bring port services closer to shippers in the hinterland through specializedrail‐road services and decongesting the cargo traffic.>

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THE FUTURE OF ECONOMIC CORRIDORA WIN-WIN SYNERGY FOR PAKISTAN & CHINA

Strong Buyers/Suppliers BaseChina is the second largest trading partner of Pakistan in Asia; which will bestrengthen through this corridor as both the countries may find strongbuyers/suppliers in various sectors of mutual interest>

Environment Friendly CountriesReducing the transport distances will substantially conserve fuel resources andreduce carbon emission for creating a clean‐air environment in the region

Environment Friendly CountriesReducing the transport distances will substantially conserve fuel resources andreduce carbon emission for creating a clean‐air environment in the region>

Energy ProjectsPak‐China Economic Corridor will also initiate 19 energy projects of worthUS$ to generate over 22,000 MW electricity both in public and privatesector which will support the industrialization in the Special Economic Zones(SEZs) being developed across this corridor

Energy ProjectsPak‐China Economic Corridor will also initiate 19 energy projects of worthUS$ to generate over 22,000 MW electricity both in public and privatesector which will support the industrialization in the Special Economic Zones(SEZs) being developed across this corridor

>

Competitiveness in Export MarketsAs soon as Pak‐China Economic corridor become operational; it willsubstantially effect the cost of market access for China, giving its products amore competitive edge in export markets. Similarly, Pakistan will have aconvenient access to Chinese markets for increasing trade between both thecountries.

Competitiveness in Export MarketsAs soon as Pak‐China Economic corridor become operational; it willsubstantially effect the cost of market access for China, giving its products amore competitive edge in export markets. Similarly, Pakistan will have aconvenient access to Chinese markets for increasing trade between both thecountries.

>Pak-ChinaEconomicCorridor

EconomicProsperityOf Nations

EconomicProsperityOf Nations

InfrastructureDevelopment

BusinessOpportunities

EfficientTransport Routes

ExpandingRegional Trade

JobCreation

RaisingPer Capita Income

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THE NEXT STEPLETS MEET & DISCUSS OPPORTUNITIES

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THANK YOU