Dr Bilawal Kamran

When Gwadar Deep-Sea Port was completed in 2007, it was touted as a transformative infrastructure project, designed to position Pakistan as a key player in regional and international maritime trade. Part of the ambitious China-Pakistan Economic Corridor (CPEC), the port was meant to be a beacon of economic growth, facilitating the movement of goods between Pakistan, China, and Central Asia. Yet, over a decade later, the port has failed to meet the expectations placed on it, struggling to even attract regular vessel traffic, let alone rival other regional ports that have seen success.

Launched in 2013, when the first-ever container ship carrying cargo from China passed through the port, Gwadar was meant to be a regional transshipment hub. However, eight years later, the reality is far from the promise. Gwadar’s lack of activity stands in stark contrast to other ports built with Chinese investment, such as those in Sri Lanka, Nigeria, and Cameroon, which have outpaced the Pakistani port in terms of commercial success and operational volume. Barely any vessels call at Gwadar, leaving many to question the efficacy of the billions invested into the project.

The planning and special initiatives minister’s frustration is evident, especially in light of the failure to “market the Gwadar port to expedite its commercialization.” With few commercial operations, Gwadar has become a “white elephant” instead of the bustling port it was designed to be. The minister has pointed fingers at the maritime ministry and the National Logistics Cell (NLC) for their lackluster and unprofessional handling of what was supposed to be the “crown jewel” of the CPEC project.

The failure of Gwadar to gain traction has raised concerns at the highest levels of government, as the port was seen as vital not just for Pakistan’s economy but also for the socio-economic development of Balochistan, a region mired in poverty and underdevelopment. Prime Minister Shehbaz Sharif recently directed that 60% of all public sector cargo be routed through Gwadar in an attempt to kickstart port activities and generate trade. However, this directive may face insurmountable obstacles. One of the biggest barriers is the port’s lack of capacity. Moreover, the cost of transporting goods from Gwadar to the rest of the country is significantly higher than the costs associated with using Karachi port, which remains the preferred option for most businesses.

Despite the Prime Minister’s orders, Gwadar’s lack of infrastructure and logistical limitations are unlikely to allow it to become a viable alternative to Karachi. Additionally, the port faces chronic power supply issues, which further hinder its ability to attract commercial traffic. The planning minister has directed relevant authorities to hire an international consultant to devise a plan to make Gwadar competitive with other regional ports. While a comprehensive marketing strategy may have its merits, it will not solve the more fundamental problems facing the port.

A well-crafted marketing plan will not address the underlying security challenges in Balochistan, where militancy and instability have made businesses wary of investing in the region. It also cannot create peace in Afghanistan, a crucial neighbor whose stability is vital to unlocking Gwadar’s potential as a trade corridor to Central Asia. Without peace and security in the region, the flow of trade through the port will remain stagnant. Additionally, Gwadar’s appeal to China as a destination for industrial relocation or as a key site for oil imports is limited by these very security concerns and the lack of a developed infrastructure that could support such initiatives.

Another significant issue is the limited capacity of Gwadar itself. The port was designed to handle vast quantities of goods, but its operational capacity remains constrained by underdeveloped facilities, including a lack of sufficient storage, inadequate cargo handling capabilities, and outdated logistics infrastructure. Furthermore, the port suffers from a chronic power shortage, which has led to operational inefficiencies and further deterred potential businesses from committing to using Gwadar for trade. In contrast, Karachi’s well-established infrastructure and logistics network continue to attract ships and cargoes, making it the obvious choice for businesses despite the higher costs involved in its operations.

The government’s desire to make Gwadar a major regional port is understandable, given its strategic location at the crossroads of the Middle East, South Asia, and Central Asia. The potential for Gwadar to serve as a key hub for trade, particularly in energy supplies and industrial goods, is immense. However, the reality is that without addressing critical issues such as security, infrastructure, and logistical inefficiencies, the port will remain a distant dream rather than a functioning trade hub.

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For Gwadar to become a successful port, a multifaceted approach is needed—one that goes beyond simply “marketing” the port. First, addressing the security situation in Balochistan is crucial. Without peace and stability in the region, it is unlikely that any marketing effort will attract the volume of business needed to make Gwadar a commercial success. The Pakistani government must work with local stakeholders and international partners to bring peace to the region, as the port’s success is directly linked to the overall security situation in Balochistan and its surroundings.

Second, the government must prioritize the development of the port’s infrastructure, including expanding its capacity, upgrading its cargo handling facilities, and ensuring a consistent power supply. This will require significant investment and long-term planning, but it is the only way to make Gwadar a competitive alternative to other regional ports. Improving the port’s logistics network, such as establishing direct transportation links to other parts of the country and beyond, will also be necessary to reduce the high cost of trade through Gwadar.

Third, the government must focus on developing partnerships with international shipping companies and businesses, particularly those from China, to bring them on board as stakeholders in the port’s future. The potential for Gwadar to serve as a transshipment hub for goods coming from China and Central Asia is enormous, but this can only be realized if the necessary infrastructure, security, and logistical systems are in place to support it.

Lastly, the government should focus on creating an enabling environment for private sector investment in Gwadar. Public-private partnerships could help develop the port’s infrastructure and logistics, while also creating a more competitive and dynamic business environment. Encouraging private sector involvement could also bring in much-needed expertise and innovation that would further accelerate the port’s development.

In conclusion, while Gwadar port holds great promise, it cannot reach its full potential until the fundamental issues affecting its growth are addressed. A marketing plan alone will not be enough to overcome the challenges the port faces. Security, infrastructure, and logistical improvements are key to unlocking Gwadar’s potential as a regional trade and shipping hub. Without these critical investments and reforms, Gwadar will remain a missed opportunity for Pakistan’s economy and the people of Balochistan.