The Pakistani port of Gwadar is a key regional transshipment point. New Dubai: How Pakistani Port of Gwadar Threatens the UAE's Regional Role

China is lavishing huge amounts of aid on a small Pakistani fishing town to win over local preferences and build a deep-sea trading port, but the United States and India suspect it may one day serve as a base for the Chinese navy.

Beijing has already built a school, sent doctors and promised to allocate about $ 500 million in grants for the construction of an airport, hospital, college and water supply infrastructure for Gwadar, a dusty town on the shores of the Arabian Sea, with the prospect of making it a staging post on one of the most large sea routes of oil and gas.

The grants include $ 230 million for a new international airport, one of China's largest investments overseas, according to researchers and Pakistani officials. The scale of the Chinese grants is incredible, according to Brad Parka, executive director AidData, a research laboratory in the United States, analyzes data from Chinese aid in 140 countries from 2000 to 2014. “The Gwadar project is exceptional even by the standards of China's past activities in Pakistan,” Parki said.

According to the Pakistani government, $ 100 million is planned to expand a 250-bed hospital, $ 130 million to upgrade communal infrastructure, and $ 10 million for a vocational school.

The Gwadar Development Project is a departure from Beijing's usual approach to other countries. In China, Western-style aid has traditionally been ridiculed for infrastructure projects, for which loans are usually provided by Chinese state-owned commercial banks.

“The concentration of grants is amazing,” said Andrew Small, Washington Researcher German Marshall Fund, author of a book on Sino-Pakistani relations. "China usually does not give aid or grants, and when it does, they are humble."

Pakistan welcomed this assistance. However, Beijing's unusual generosity has raised suspicions in the United States and India, which believe that Gwadar is part of China's future geostrategic plans to challenge American naval dominance. “All of this suggests that Gwadar, for many people in China, in the long term, is not easy offer, ”Small said.

China's Foreign Ministry did not respond to a request for comment from Reuters.

Beijing and Islamabad see Gwadar as a future pearl in the crown of the China-Pakistan economic corridor, the Belt and Road project for the construction of land and sea trade routes of the new Silk Road is under way in more than 60 countries in Asia, Europe and Africa.

The plan to turn Gwadar into a transshipment hub and megaport goes along with the establishment of special economic zones. The port's transshipment capacity is expected to grow from 1.2 million tons in 2018 to 13 million tons by 2022, according to Pakistani officials. In the harbor, three new cranes have already been installed and next year will be dredging up to 20 meters at five berths.

But Gwadar's problems are that it has no access to drinking water and constant rolling blackouts. Separatist militants are threatening attacks on Chinese projects in Gwadar and Baluchistan, a mineral-rich province still one of Pakistan's poorest regions.

Security is a major concern, with convoys of soldiers and armed police traveling with Chinese and other foreign guests.

“The locals are not entirely happy,” said Essar Nori, a legislator in Gwadar, adding that the separatists are pressuring this dissatisfaction. Tens of thousands of people living in the port must be relocated. Pakistani officials are urging Gwadar residents to be patient, promising to urgently build desalination plants and power plants.

China will receive 91% of the port's revenue over four decades. The Chinese overseas port operator will also be exempted from major taxes for more than 20 years.

Pakistani government spokesman for maritime affairs, Hasil Bizenjo, announces the arrival of the Chinese in the region based on the experience of the past two centuries, when Russia and England, and later the United States and the USSR, vied for control of the warm waters of the ports of the Persian Gulf.

According to a US Department of Defense report released in June, it has been suggested that Gwadar could become a military base for China. India has expressed similar concern. Beijing rejected this claim.

“The talk that China is building a military base in Pakistan is pure fortune-telling on coffee grounds,” said Wu Qian, a spokesman for the PRC's Ministry of Defense.

Bizenjo and other Pakistani officials say Beijing is not asking for the use of Gwadar for naval purposes.

“This port, they will use mainly for their commercial interests, but it depends on where the world will go in the next 20 years,” said Bizenjo.

China's Gwadar project contrasts with similar efforts in Sri Lanka, where the village of Hambantota has been converted into a port complex. Last week, Sri Lanka officially gave the village a 99-year lease to China in exchange for external debt payments, sparking street protests as many Sri Lankans saw it as an erosion of sovereignty.

The port of Hambantota, like Gwadar, is part of Beijing's Asian and African network that fears India and fears of being surrounded by growing Chinese naval power.

But Pakistani officials say the comparison with Hambantota is flawed because the Gwadar project has far less debt.

Map. Port Gwadar China-Pakistan Railway // Vesti. Economy. 11/12/2015.

Map. Port Gwadar China-Pakistan Railway

The Pakistani government has leased out 152 hectares to the Chinese state company China Overseas Port Holding for 43 years in the port of Gwadar (Pakistani province of Baluchistan) to create a special economic zone.
"As written in the agreement,
the Hong Kong-based Chinese company will receive full management rights to the Port of Gwadar, Pakistan's third largest seaport, as well as an international airport and coastal management company. maritime zone"- writes the China Daily.
"It is expected that China's investment in Gwadar will amount to $ 1.62 billion," the newspaper said. The money will go to the construction of a highway between the harbor and the coast, a railway line, as well as the construction of breakwaters. Nine projects are also envisaged to be implemented in the next five years.
The port infrastructure will be built by the Chinese companies China Overseas Port Holding and Zhuhai Port Holding.
Gwadar is located on the coast of the Arabian Sea and is the only Pakistani deep sea harbor. The port opens access to the Strait of Hormuz, strategically important for world oil trade, connecting the Oman and Persian Gulfs, TASS notes.
Gwadar is also the southern tip of the Sino-Pakistani economic corridor, which originates in the Xinjiang Uygur Autonomous Region of China. This large-scale project, the total cost of which is estimated at $ 46 billion, will connect China with the oil-producing countries of Central Asia. The corridor will unload the Strait of Malacca, which carries more than 80% of China's imported oil.

See also:
[***] China is moving towards the Persian Gulf. The harbor in Pakistan was transferred to the management of Beijing // Nezavisimaya gazeta. 04/20/2015.
http://www.ng.ru/world/2015-04-20/8_china.html

[***] China is pulling rails out of Pakistan. New Railway will lead it to the Indian Ocean [a road about 700 km long will pass from China through the Khunjerab pass 4620 m to the port of Gwadar] // Kommersant. 09.07.2010.
http://www.kommersant.ru/doc/1410183

[***] Indo-Volga railway. Project of Baranovsky Stepan Ivanovich // Niva. 1874. No. 34. S. 536-539.

[***] Golubchikov Yu.N., Rakhimov K.K., Sobyanin A.D., Tikunov V.S. Geographical justification of the Indo-Siberian transport direction // Geography and Natural resources... 2012. No. 3, July-September. S. 168-172.
http://conjuncture.ru/transeurasia/
Translation of the article into English:
Geographical substantiation of the Indo-Siberian transport direction. Yu. N. Golubchikov, K. K. Rakhimov, A. D. Sobyanin, V. S. Tikunov // SpringerLink. 11/15/2012.
http://conjuncture.ru/springerlink_15-11-2012/

[***] Is the Pamir worth Russian money and effort? Yes, worth it! Article 74: Extremely Important Badakhshan - for Russia // LJ Sobyanin (sobiainnen). 25.07.2012.
http://conjuncture.ru/sobianin_25-07-2012/

[***] Russian base in Osh and the Chui-Fergana railway: Russia's top priorities in Kyrgyzstan (2012). 80 publications on the topic of the base in Osh and two versions of the railway through Kyrgyzstan - KKUZhD and ZhDCHF // LJ Sobyanin (sobiainnen). 10.10.2012.
http://conjuncture.ru/sobianin_10-10-2012/

[***] 500 iron kilometers to India (railway map through Khyber lane) // LJ tomas-morr. 03/18/2015.
http://tomas-morr.livejournal.com/336561.html

[***] Alexander Sobyanin: Russia, India, Iran and Pakistan need the North-South ITC. Khazar-Hanseatic route. Interviewed by Maria Fersman // Eurasian Communication Center. 09.09.2014.
http://conjuncture.ru/eurasiancenter-ru-09-09-2014/

[***] Russia's exit to the Indian Ocean. About the railway from Siberia to India. Online conference of Yuri Golubchikov, Alexander Sobyanin and Kubatbek Rakhimov. The initiators of the railway from Siberia to Iran, Pakistan and India will be Russia and Kazakhstan. The first stage - the Chui - Fergana railway // RIA Novosti. 12/22/2011.
http://conjuncture.ru/sobianin_22-12-2011/
Part 1. Significance of the Russian Navy Flag in the Persian Gulf and the strategic importance of the 1520 gauge.

Part 2. Railways of Eurasia - Elephant (India), Dragon (China), Bear (Russia and the Eurasian Union).

Part 3. Railway from Siberia to the Indian Ocean: the military-political and economic imperatives of Russia and the Eurasian Union.

[***] Bessarabov GD, Sobyanin AD On the economic presence of Russia in Western China and Central Asia: the Chinese-Kyrgyz railway // Profi. 2001. No. 1-2. S.51-53.
http://conjuncture.ru/sobianin_19-10-2000/

[***] Chernov M. Russia is called to Pakistan. Russian railway workers will save the Islamic republic // RBK daily. 28.05.2009.
http://conjuncture.ru/rbcdaily-ru-28-05-2009/

[***] Grigoriev S.E., Zabello Ya.Yu., Chakeyeva M.U. Tashkent-Karachi Highway: New Routes Opening for Russian Exporters // New Markets. 2002. No. 4, August.
http://conjuncture.ru/pakistan_01-08-2002/

[***] Tashimov T. Corridor on demand [map of the Trans-Afghan corridor in Karachi and Gwadar, map of the North-South ITC] // Expert Kazakhstan. No. 36 (183). 15-22.09.2008.
http://expert.ru/kazakhstan/2008/36/transafganskiy_transportnyi_koridor/

[***] Manachinsky A.Ya. China: maritime communications. China in Africa. The Strait of Malacca is an oil route. Port of Gwadar. Infrastructure of the Navy // Rubicon.org.ua. 31.10.2014.

According to the latest UNDP data, Pakistan is ranked as one of the ten fastest growing countries in the world. With a growth rate of 7-8% per annum, the level of GDP in Pakistan has grown in recent years from 70 to 110 billion US dollars. A country that was aiming for $ 9 billion in exports five years ago had reached $ 18 billion by the end of fiscal 2006. In the latest report, prepared by the Planning Commission and entitled “Foresight for 2030,” opposite the GDP column stands the figure of $ 700 billion over the next 25 years.

The implementation of such ambitious projects is dictated by time, as well as the strategic needs of social economic development both Pakistan and the region as a whole.

In order to implement large national and transnational projects, Pakistan at the beginning of the 21st century embarked on a course towards privatization and attracting foreign investment in various sectors of the economy. Several large investment projects, for example, in the field of telecommunication technologies, satellite communications, construction of transport corridors, etc.

The geographic location of Pakistan contributes to the implementation of large regional projects. In the east, it borders on India, in the northeast - with China, in the north and northwest - with Afghanistan, the western borders adjoin Iran, through which, in turn, there are routes to the countries of Central Asia.

Kazakhstan, Uzbekistan and Turkmenistan are known to have colossal reserves of natural resources. According to preliminary calculations, up to 4% of the world's proven hydrocarbon reserves are concentrated here. With a population of 69 million people and a combined GDP of $ 62 billion, the region, on the one hand, from the mid-90s of the twentieth century, begins to develop in terms of internal regional trade. The infrastructure of existing and under construction pipelines passes through the territory of the former Soviet Union. And energy carriers are vital both for Pakistan itself and for Afghanistan and undoubtedly China, especially its western provinces. The latter countries, as well as the Central Asian states, find it extremely important to have access to the warm waters of the Indian Ocean and the Persian Gulf.

Thus, the new alignment of geopolitical forces in the region and the opportunities that have opened up put Pakistan in front of the fact of strengthening regional economic and political ties.

On the other hand, in general, there is a transformation of the region towards integration into the world economic community. And it should be noted that this is very important for Pakistan: internationally, its status as a country is strengthening, through whose territory strategically important export-import routes will be laid. In an interview with Russian television at a conference of the Shanghai Cooperation Organization (SCO) on June 13 this year. In Shanghai, China, Pakistani President General Pervez Musharraf stressed: "Pakistan will become a 'transport corridor', where trade routes pass from the Asian region to the Middle East, to Europe and back ..." Indeed, Pakistan is currently undergoing a process of rapid transformation.

One of the powerful promising projects of the federal government of Pakistan is the construction of the port of Gwadar. This is a very daring, fundamentally new object. Even the concept of such a project speaks of the boldness of engineering thought, the power of the attracted financial resources and the vital need for Pakistan to implement it.

Port Gwadar is the first and so far the only port in the Pakistani province of Baluchistan. Its geographical position is unique, which makes it attractive both for China, Afghanistan, and for the countries of Central Asia and the Near and Middle East. It is located in close proximity to the entrance to the Persian Gulf on the Indian Ocean coast, just 18 miles from Dubai.

Overall, Pakistan views Baluchistan as the target of its future economic and strategic ambitions. First of all, it is the largest province of Pakistan in terms of territory: its area is 347 thousand square meters. km, or 43.6% of the country's territory. It is located in the east of Pakistan and borders Afghanistan and Iran.

But there are a number of factors that take it out of the context of the traditional approach to economic and social development provinces of Pakistan, namely: natural resources, geographical proximity and ... access to the sea. It is known that today Karachi is a metropolis and a port in Pakistan at the same time. But its geographic location is relatively vulnerable. We'll talk about this below. And back to Baluchistan.

Despite all the confusion of ethnic mixing, the long-term struggle of local nationalist and national political parties, extreme social backwardness in general, a low level of economic development in comparison with other provinces of the country, drug trafficking from Afghanistan, remoteness from the federal military-civilian well-trained center, constant discontent among the main residents provinces - Baluchis and Pashtuns - by the central authorities, Baluchistan is increasingly attracting the attention of the federal authorities with its geostrategic position.

The land of Baluchistan is rich in reserves of iron ore, chrome ore, barium sulfate, copper, fine gold (an alloy of copper with gold), zinc, and natural gas... The first commercial well was drilled in 1952, marking the beginning of the development of the Sui / Suii gas field, the largest gas field in Pakistan. Gas fields have also been explored in other areas of the province, such as Zin / Zin, Loti / Loti, Pirkoh / Pirkoh, South Zarghun, etc. In 2005, the first commercial well was drilled in the Ziarat - 1 field.

The coastline of Baluchistan, which stretches for hundreds of kilometers, should also be referred to as "natural" resources. It is thanks to her that Pakistan has unhindered access to the sea trade routes of the Indian Ocean and the Persian Gulf. Currently, the question is how to use this "gift of Allah" most effectively.

Islamabad's plans for Baluchistan are simple and grandiose:

Capitalizing on trade opportunities with Afghanistan and with the landlocked countries of Central Asia;

Development of trade and transport links with the countries of the Persian Gulf;

Export development;

Transshipment of transcontinental cargo;

Construction of oil storage facilities, oil and gas processing plants of various capacities, etc.

Located at the entrance to the Persian Gulf, at a distance of 460 km from the port of Karachi, Gwadar is of great geostrategic importance. When developing Master plan Port development took advantage of the geographical position of Gwadar as an alternative port in the region.

The geographical position of the port of Gwadar is also unique because it is located in the immediate vicinity of the entrance to the Persian Gulf, which is also very important from a geostrategic point of view. The continuing unstable situation in the Persian Gulf, which began with the Iran-Iraq war, the Persian Gulf war, and the emergence of sovereign states in Central Asia only increased the importance of building a new port. Responding to the requests of geoeconomic requirements arising from changes in the region, a Master Plan for the Development of the Port was developed, which provides for its construction as an alternative, on the one hand, to the Pakistani ports of Karachi and Kazim, and on the other hand, to the existing ports of the Persian Gulf from the point of view of development of new trade routes from the countries of Central Asia, as well as a modern transshipment point in the region as a whole. The construction of the port provides for a significant deepening of the bottom, carrying out work on deepening and widening the navigable canal, the depth of which, according to the project, will be 12.5 m, and the width - 4.5 km. The newest infrastructure of the port will make it possible to receive oil tankers with a displacement of over 100 thousand tons of crude oil and large-tonnage merchant ships. This puts it out of competition in comparison with neighboring ports (Pakistani and Iranian) and thus provides in the future an advantage as a trading port on the way from Asia to Europe.

Initially, the Pakistani authorities set a similar task for the ports of Karachi and Kazim / PQA. However, the growth of Pakistani trade makes one think that today the transshipment capacities of both ports (25 and 17 million tons per year, respectively) will not be enough in the near future. At present, Karachi is one of the megacities of the Asian continent with a population of 16 million people; it is an economic capital, a commercial and industrial center, the country's main air gate, the main seaport, etc. Up to 80% of Pakistani goods are exported worldwide from the port of Karachi.

But for a country that has set a goal to increase its GDP to the level of USD 700 billion over the next 25 years, a qualitative improvement of the port infrastructure is required. That is why the authorities abandoned the idea of ​​relying on the industrial re-equipment of the ports of Karachi and Kazim due to its futility, namely, because of their remoteness from the main sea shipping routes and, consequently, additional time costs, as well as restrictions on the draft of merchant ships and offshore oil tankers. The modernization of existing facilities will undoubtedly be carried out, but new opportunities for trade and investment are required. Thus, even at the stage of the development of the Master Plan for the Port Development in Baluchistan, the advantages of the geographical position of Gwadar were taken advantage of as an alternative port in the region, which can receive both national and foreign large-tonnage oil tankers.

It is known that the Gulf region is rich in hydrocarbon reserves. Pakistan also takes this into account. Therefore, the construction of the port of Gwadar opens up prospects for the transshipment and transportation of crude oil and oil products from the countries of the Near and Middle East, as well as Central Asian states for the growing markets of Asia.

Today, it is already obvious that the transshipment capacities of the ports adjacent to Gwadar (Pakistani and Iranian) do not match, which significantly increases the level of competition between them. The possibility of entering a seaport only intensifies the competition for market share between competitors. This often leads to a sharp increase in the prices of port services.

With the commissioning of the first stage of the port of Gwadar, the question of the redistribution of oil and gas flows between ports in the region will arise. Iranian ports, in turn, are faced with the need to re-equip their already outdated port facilities. Currently, Iran does not have sufficient infrastructure for transshipment of hydrocarbons from Central Asia. The Bandar Abbas port has two oil terminals, while the Chahbahar port has only one small terminal.

Moreover, Iran's international isolation drastically reduces the use of its port facilities. Geopolitical instability in the region of the Near and Middle East, limited opportunities of Iranian ports provide at the same time a unique opportunity for Gwadar to attract a significant part of the market and become a key port in the region.

The master plan for the development of the port of Gwadar provides for another important area - the development of potential trade and economic opportunities with the western provinces of China. This point - China and the Pakistani province of Baluchistan - should be discussed in more detail.

A bit of history. In 1978, when the PRC proclaimed a course for the transition to market economy, the coastal regions of eastern China have received a powerful impetus for development. The lagging behind in the economic development of the western provinces of China became more and more evident over the years. The Chinese Communist Party has developed a plan for the economic development of the western part of the country, that is, the provinces bordering Pakistan. This region covers 71.4% of China's territory with a population of only 28.8%. The seriousness of such intentions is evidenced by the fact that in January 2000 the country's leadership established the Development Group for the Western Provinces of China (includes 27 ministries), headed by President of the People's Republic of China Hu Jintao.

China openly says that it considers Pakistan as an industrial base for Chinese companies, export of production facilities of small and big business, the installation of assembly lines, in particular in Baluchistan, and the implementation of export-import operations with the countries of the Middle East, Africa, Central Asia, etc.

The main objective of this strategy is to develop infrastructure, attract foreign investment, protect environment, various educational programs.

Areas of cooperation between the two countries - chemical industry, engineering, supply of railway rolling stock, construction of infrastructure facilities, highways, ports, bridges, residential buildings, etc.

Close economic cooperation between China and Pakistan began in the 1960s and 1970s. One of the first major projects was the construction of the Karakorum highway in the 70s. It is also called the "land bridge" between the two countries.

But in addition to the listed priorities, there is one more task for China - it needs access to the Indian Ocean in order to "free" the land province of Xinjiang from captivity. Therefore, he is extremely interested in large transnational projects, be it the construction of a high-speed highway or the laying of a railway line from the western provinces through Baluchistan to the ocean coast.

For its part, Pakistan seeks to develop economic cooperation with a "time-tested" friend, China. However, bilateral trade is still at a low level and today the trade turnover between the two countries is only $ 2.4 billion. Both Pakistan and China are interested in increasing trade both among themselves and in the region as a whole.

China's growing demand for electricity and the country's rapid economic growth are only fueling the energy game in Central Asia. China entered the energy market in Kazakhstan by purchasing Petro Kazakhstan / Petro Kazakhstan for $ 4.2 billion. China has carried out similar interventions in Sudan, Nigeria, Venezuela and other countries. The economic prospects of the great neighbor (China), which in the near future promises to become the country with the largest economy in the world, already today have a tremendous impact on the region as a whole, and on Pakistan in particular.

That is why China is so eager to the Indian Ocean, so interested in the development of the port facilities of Gwadar. For the implementation of the first stage of construction, the Chinese side provided Pakistan with a loan of $ 2 billion.

The implementation of this ambitious project is divided into several stages. The construction of the first stage of the port began on March 22, 2002, and since January 2003 the port has been accepting merchant ships with cargo for its own construction. Commissioning is scheduled for mid-2006. The completion of the first phase includes the construction of three multifunctional berths for anchorage sea ​​vessels, including infrastructure for transshipment of crude oil from oil tankers.

Currently, the Pakistani federal government has not yet decided on the timing of the transition to the second stage of the port construction, and with the main investor. The second stage of construction envisages, in addition to the construction of nine new sea berths, the installation of equipment for night navigation. The cost of implementing the project at the second stage will amount to $ 600 million.

The issue of an investor is of fundamental importance for Pakistan, since it clearly understands that China's long-term presence in the region will entail certain difficulties for the country. In such a situation, Pakistan must strike a tough balance between a "time-tested friend" and other allies.

The federal authorities of Pakistan, initiating the construction of the port of Gwadar, considered and are considering it as an alternative large seaport in the event of a blockade of the existing ports of Karachi and Kazim. And this is no coincidence. Long-standing strained relations with neighboring India constantly weigh on Pakistan. And the construction of a powerful seaport with the latest technology out of reach of the Indian Navy - a brilliant opportunity for Pakistan. That is why Islamabad plans to build its third naval base in Gwadar, which will also significantly strengthen the country's security in the region.

In addition to the geostrategic goals discussed above, when developing the Master Plan for the development of the port of Gwadar, purely economic benefits were also taken into account:

Improvement of internal transport infrastructure in Baluchistan province in connection with the construction of a new port;

Construction of new railway lines from the port to the interior of the province, as well as towards Iran and to connect with the existing transport railways of Pakistan;

Construction of the Coastal Highway, which will link Gwadar to Karachi;

Development of shipbuilding industries in the province;

Construction of industrial and industrial zones, including the construction of special terminals for sea containers;

The influx of labor from the northern and central regions of the country and, accordingly, its outflow from overpopulated Karachi. Already today, the port has provided new jobs for three thousand people.

Today the population of the city of Gwadar is only 125 thousand people. In the recent past, it was a small coastal town surrounded by a sun-set desert. Many note that the city follows the same path as the port of Rashid in United United Arab Emirates... And Pakistan has ambitious plans for the development of Gwadar, he wants to make it a second Dubai. And this is justified. For example, Dubai's trade turnover is 16.5% of the $ 20 billion of the UAE economy.

However, in order to implement such a plan, Pakistan will have to overcome many difficulties, and one of them is the solution of the issue of delivery to the city. drinking water... In general, this is an extremely expensive project, since it provides for the use of only imported materials.

But, despite many unresolved issues, strategic development Gwadara is clearly defined: it is an international port. For this purpose, significant foreign investments are attracted for its construction. Currently Islamabad is negotiating with private investors on the construction of the second stage.

Interest, in particular, was shown by many Arab countries, for example, the UAE and Kitar. Oman's Foreign Minister, Yusuf bin Alawi bin Abdullah, after a visit to Pakistan, promised to allocate $ 100 million for the development of Gwadar.

For Pakistan, the construction and commissioning of the port of Gwadar could become a key cargo port, which will bring Pakistan much-needed income and, in cooperation with neighboring countries in the field of railway and transport construction, will connect Gwadar with other regions of Pakistan, as well as with the countries of Central Asia.

At the same time, with the emergence of a new port in the region, competition in the port services market will sharply increase. Pakistan is gradually becoming a new player in the market for transshipment services of hydrocarbon raw materials in the Persian Gulf region.

Have you ever heard of what is called the "distant Gulf War"? This is a war that can start - albeit in a "cold" form - outside the Gulf countries. Talk about it resumed after the port of Gwadar once again attracted the attention of the international community, threatening to "knock the ground out from under the feet" of the UAE.

The port, dubbed New Dubai, opens onto the Arabian Sea in southwestern Pakistan and is close to the Strait of Hormuz, which accounts for one-third of the world's oil trade. The New Dubai is part of the Belt and Road Project launched by China in 2013 in the context of the country's continued rise as an economic superpower. The aim of this project is to drop shipping Chinese goods to different regions of the world as soon as possible.

The joint Sino-Pakistani project meets the interests of some countries and at the same time threatens the interests of others, which perfectly demonstrates the conflict situation in the region, which also indicates the possibility of imminent changes in the regional rules of the game and, possibly, even the possibility of the conflict going beyond the region into in the event of intervention by the United States and Russia. How can the UAE respond to this threat, which risks stripping the country of its status as one of the world's leading trade centers in the Middle East?

The importance of the port of Gwadar

The port of Gwadar is strategically located as it links South and Central Asia and the Middle East, and was also the most important part of the ancient Silk Road linking China with three old continents (Asia, Europe and Africa). This is due to the port's access to the Arabian Sea near the Strait of Hormuz, which helped to reduce travel time and financial costs for trade caravans.

Since 1779, the Gwadar Strait was under the control of the Sultanate of Oman until Pakistan regained it in 1958. However, it took about 44 years before Islamabad began to benefit from the port. Thus, for the first time the idea of ​​operating Gwadar as a port for large ships appeared only in 2002.

By 2013, China announced the launch of the historic Belt and Road project, which aims to create an extensive network of sea and land routes involving 68 countries, in accordance with a plan to transport Chinese goods to various parts of the world.

The port of Gwadar is one of the most significant components of this project due to its proximity to China: it is the closest port to the industrial zone in Xinjiang, compared to Chinese ports in the east. Through Gwadar, Beijing can conduct trade throughout Pakistan. For this purpose, roads were specially built leading to the port, from where Chinese goods are transported to the countries of the Persian Gulf and to the Middle East in general.

The estimated annual investment in the Sino-Pakistani project is estimated at $ 150 billion per year. The project is divided into two parts: land and sea. As for Gwadar, it is part of the overland route, which includes six key roads, the most famous of which is the London railway with a length of 18 thousand kilometers. According to the Opendecy report, the road passes through nine countries: China, Kazakhstan, Russia, Belarus, Poland, Germany, Belgium, Britain and France.

Multimedia

New project Silk road

RIA Novosti 05/15/2017 Islamabad did not find a better opportunity to be in the center of world attention. He expects great economic returns from partnering with China on this project. In 2015, the Pakistani government announced a 43-year lease of a 152-hectare plot in the commercial port of Gwadar to China Overseas Ports Holding to facilitate direct access for Chinese goods to the Gulf region and the Middle East.

On April 10, 2016, CEO Zhang Baozhong said China Overseas Ports Holding could spend a total of $ 4.5 billion on roads, energy, hotels and other infrastructure in the Gwadar industrial zone. The company also plans to build an international airport and a power station in the Pakistani port so that the first shipments of Chinese goods from Xinjiang (at a distance of three thousand kilometers from the port) arrive in Gwadar at the end of 2016. This will deal a strong blow to the conflict region.

The threat to the port of Dubai

Dubai is the lifeblood of the Emirati people, the foundation of the image to attract the attention of the whole world. Emirates are investing in the development of Dubai most of their investments to make the city a center international trade, finance and tourism. It is a multicultural city that can become a center of attraction for both tourists and businessmen.

The importance of Dubai is primarily associated with its infrastructure: it is the largest Middle East port Jebel Ali Jeff Ali and the port of Rashid. Dubai is the most famous city in the UAE, home to about five thousand companies from 120 countries around the world.

The UAE economy is dependent on income from the services provided through these ports. It is a source that generates gold without interruption. Dubai is a unique logistics hub and there are no other projects that could compete with it and reduce its market share. But what could happen after the launch of the Sino-Pakistani project if the port of Gwadar can attract international attention due to its geographic location and other advantages mentioned above?

UAE Takes Countermeasures

The Emirati authorities were quick to pre-emptively strike the project before it becomes part of reality, as the Sino-Pakistani project is expected to have a huge impact on Jebel Ali port within ten years. To prevent such a development of events, the Emiratis are acting in two directions.

© RIA Novosti, Anna Chernova

The first is supporting the Pakistani opposition, strengthening its position in the confrontation with the former Prime Minister of Pakistan Nawaz Sharif, a staunch supporter of the Sino-Pakistani project, who was removed from office in July amid allegations of corruption. For example, some sources indicate that the United Emirates was behind this (to a large extent), after the investigating authorities received information that Sharif headed the board of a company owned by his son Hasan in Dubai and received a salary in a bank account in UAE until 2014, including within a year after coming to power. The tax authorities did not know about this money, as a result of which Sharif was charged.

The second is the revival of relations with the opponents of Pakistan in the region, led by India. In particular, in 2015, that is, the year when the Pakistani government announced that it would lease land to China in the port of Gwadar, Indian Prime Minister Narendra Modi paid a visit to the UAE. It is known that this is the first visit of an Indian Prime Minister to the UAE over the past 37 years.

Context

Haftar squanders Libyan oil

Ash-Sharq Al-Qatari 09/13/2017

A new player tearing Libya apart

NoonPost 06/18/2017

India has reasons to boycott China

Hindustan Times 05/16/2017

Why is India joining the "anti-Western" SCO?

Forbes 11/30/2017 In turn, India also welcomes cooperation with the Emirates, as it is interested in disrupting the project, being one of the countries affected by it. So, the geography of the project is such that it will affect the territory of Kashmir - the conflict zone between India and Pakistan, which will mean that this region, being a conduit for Chinese goods, will be under the protection of China.

Struggle for influence

It is clear that the port of Gwadar and the Sino-Pakistani project in the region have become the arena for regional power struggles. The circle of opposing players is not limited to such countries as the UAE, on the one hand, and Pakistan, China, on the other. After India stepped onto the front lines, stepping up its partnership with Abu Dhabi, Iran also entered the scene. He has accelerated the development of the port of Chabahar, 165 kilometers from Gwadar, and has placed the port under the full control of India for a project worth about half a billion dollars, as he fears the consequences of the Pakistani port's participation in the Chinese project.

Qatar also joined the fight. Qataris recognize the key importance of the port of Gwadar as one of the most important factors that can help change the map of the entire region. This prompted them to announce their willingness to pay 15% of the total cost of establishing the Sino-Pakistani corridor. The move can be perceived as a means of pressure on the UAE, which has led some observers to link Qatar's actions to the recent crisis in the Persian Gulf.

Thus, the conflict over the Pakistani port extends beyond the region. The United States, in turn, supports India and the UAE, while Russia is on the side of China and Pakistan, which means that this question acquired the character of an international struggle for influence and control. The success of China, Pakistan and Qatar in Gwadar means not only that Pakistan has an advantage in the historical conflict with India, Russia gets an additional factor to strengthen its influence in Central Asia, and China is a springboard for entering the Persian Gulf and the Middle East, but also poses a threat to Dubai as a world trade center for the next ten years.

InoSMI materials contain assessments exclusively of foreign mass media and do not reflect the position of the InoSMI editorial board.

 

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