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CPEC: Geo-strategic and economic significance

https://moderndiplomacy.eu/2018/02/25/cpec-geo-strategic-economic-significance/



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 February 25, 2018

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 Vahid Pourtajrishi 

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Authors: Vahid Pourtajrishi & Tayyebeh Vakilotojar

The China Pakistan Economic Corridor (CPEC) is of prime importance for Pakistan as it can act as the game changer boosting the economic and geopolitical role of Pakistan in the questions of the region.

Roots of China-Pakistan linkages date back to many centuries into the fabled Silk Route connecting the civilizations of India, China, Persia and Europe. Though separated by the formidable mountain ranges of Himalayas and Karakoram, the two regions remained connected through numerous mountainous tracks and routes which not only facilitated trade and travel but also the flow of ideas, culture and religion. Construction of the Karakoram Highway which was completed in 1978 provided all weather links between Pakistan and China, hence, further promoting trade and culture.

The Frontier Works Organization (FWO) is undertaking massive infrastructure development program all over Pakistan and particularly the China Pakistan Economic Corridor (CPEC).It is constructing a part of the CPEC’s Western Route in Baluchistan and a portion of the Eastern Route besides maintenance of the Karakoram Highway (KKH). Road projects in Baluchistan will link Gwadar Port with Quetta, Chaman and Rattodero at the Indus Highway and bring forth a change in socio-economic dimensions of Baluchistan and Pakistan in general. With the completion of 870 km portion of the road infrastructure developed by FWO, not only people of interior Baluchistan will be benefitted but Gwadar Deep Sea Port would also be linked with Chaman, reducing the distance by nearly 400 km. construction of Lahore-Islamabad and Karachi-Hyderabad Motorways on Built-Operate-Transfer (BOT) basis will facilitate the pace of development to take on the challenges of the CPEC.

Completion of Gwadar Port in 2007

The distance between Gwadar and Kashgar, Xinjiang province (China) is nearly 2,800 KM while the route in Pakistan comes about 2,442 km, comprising highways, energy pipelines and industrial estates stretching from Gwadar to Kashgar through Khunjerab to benefit the economies of the two countries .

According to the Asian Development Bank (ADB), the project “will provide connection between economic nodes or hubs, centered on urban landscapes, in which large amount of CPEC economic resources. They link the supply and demand sides of markets”.

Communication infrastructure of the CPEC will connect the vast but landlocked Western Chinese region with the Arabian seaport of Gwadar thereby giving it a direct and shorter access to the trade markets of the Middle East and beyond.  FWO, the leading infrastructure development organization of Pakistan, created specifically for the Pakistan-China connectivity through construction of Karakoram Highway five decades back, has a pivotal role to play in implementation of this gigantic and crucial venture.

Two great routes, including the Grand Trunk Road (GT Road) and the Silk Route have served the Indian subcontinent. Link with China through Silk Route was not a single road but a vast network of interconnecting routes that linked the East and the West for nearly two millennia. Karakoram Highwayin 1947, the northern areas were accessible via two routes: the Srinagar Astore-Gilgit mule track and the Kaghan Valley Track over the Babusar Pass and Chilas. After 1948 Kashmir War, the Srinagar Route was denied to Pakistan and the entire northern areas became dependent on the Kaghan Valley Route.

Gwadar is considered to be the gateway to South West and Central Asia. Located at the mouth of the Persian Gulf, 624 nautical km to the east of the Strait of Hormuz, Gwadar port has immense strategic significance. The CPEC is a classic manifestation of convergence of geostrategic and geo-economic interests of the two countries bonded in time tested socio-economic and diplomatic relations with absolute trust in each other.

Gwadar Port will not only serve as a shortest route for China’s oil supply but it will also reduce the cost of supplying oil by billions of dollars. Fully functional Gwadar Port connected with China and Central Asia can play a role in the economic revival of Pakistan being located at the crossroads of huge supplying and communicating markets. FWO owes its birth in 1966 to Karakoram Highway. By managing a large work force stretched over inhospitable and harsh mountain ranges for over 887 km, FWO succeeded in carving out the “Eighth Wonder” of the World in 1978.13Today, FWO is a vibrant construction entity of 45,000 professionals equipped with over 5,000 pieces of state of the art construction machinery, stretched all across Pakistan besides venturing overseas.

Maintenance of KKH and Construction of Mansehra Naran-Chilas Road

In 1958, a modest project was initiated to provide a road link between Swat and Gilgit which grew up into a mega highway project when, in 1966.FWO is developing Jalkhad-Babusar-Chilas Road, which has almost been completed. This road is a continuation of the Mansehra-Naran-Jalkhad Road, which is complete and takes in a large volume of traffic during summers.

By end of 2016 would effectively link Gwadar Deep Sea Port with Afghanistan and China. FWO is according top priority to these routes keeping in view the supreme national interest and accordingly almost 60% of its resources have been employed for construction of these road projects. The M-8 Motorway reflects the vision of a progressive Baluchistan.

It is the first highway of the province, which shall be converted into a Motorway connecting Gwadar with the Indus Highway. Eventual alignment of this road will traverse along Gwadar, Turbat, Hoshab, Awaran, Khuzdar and Rattodero. However, the contract agreements were terminated in October 2010 due to adverse security situation as all the contractors expressed their inability CPEC 146 to work.

In 2013, fresh bids were called but only FWO submitted its proposal and the work were awarded to FWO. FWO has undertaken construction of Gwadar–TurbatHoshab and Khuzdar-Shahdadkot segments. The road is sponsored by NHA from PSDP Funding. Construction of Khuzdar-Shahdadkot link is also underway. The Highway is also known as the Gwadar-Quetta link.

According to the scope of work, length of highway is 448 km, carriageway width is 7.3 meters with shoulders of 2.5 meters. Moreover, 15 bridges are to be constructed. The construction work has been divided into four sections: the Hoshab-Panjgur (138 km), Panjgur-Nag (130 km), NagBasima (91 km) and Basima-Surab Section (89 km)

FWO is currently undertaking repair and modernization of Lahore-Islamabad Motorway (M-2) whereas the 4 lane Karachi Hyderabad Super Highway is being upgraded into a 6 lane motorway in its pursuits along the Eastern Route.

Lahore-Islamabad Motorway

Under the Concession Agreement, M-2 has been handed over to FWO in 2014 for concession period of 20 years. Project was inaugurated on 15 December 2014 and work commenced during January 2015 after largest financial close in the history of transportation and communication sector in Pakistan.

Conversion of the existing 4 lane Karachi–Hyderabad Superhighway into a 6 lane Motorway (M-9) has been entrusted to the FWO in 2015 for a concession period of 25 years. FWO is also in the process of bidding for different sections of the Karachi Lahore Motorway.

FWO is working in close harmony with Pakistan Railways for development of ‘Pak-China Dedicated Freight Corridor.’ The Corridor will extend from Karachi and Gwadar to Kashghar and eventually link the regional rail networks in the neighborhood. Oil City and White Oil Pipeline: To meet the strategic needs of Pakistan, besides the huge contemplated and projected requirements of the CPEC, an Oil Village with a capacity of 50,000 MT on Build-Own-Operate (BOO) basis and connecting it with White Oil Pipeline is being planned. Another mega initiative is Gwadar-Kashgar Cross Country Oil Pipeline with 400,000 MT storage facilities.

Economic Development Plan along Major Routes: Under this plan, a number of smart cities, industrial zones, container terminals, grain and fuel storage facilities, warehouses, dry ports and thermal power plants are planned.

CPEC: Infrastructure Development 155 along Lahore-Islamabad Motorway, Karachi-Hyderabad Motorway and Dedicated Freight Corridor.

Energy and Water Sector Projects: In order to develop energy and water sector in Pakistan, FWO has planned to undertake and develop mega dam projects as well as medium size Hydro Power Projects. The last but not the least is the capacity issue, in the implementation phase and addressed by raising and training a huge technical and skilled work force needed. National University of Technology and Skills Development (NUTECH) has been conceptualized. Proposed university to introduce the concept of basic to higher education CPEC 156 in the field of technology for the first time in Pakistan, though already adopted in the advanced countries.

The CPEC is a prized opportunity for Pakistan to realize its strategic and economic potential and is regarded as a “Game Changer” for Pakistan and the region. The benefits of the project will materialize gradually and the require determination from Pakistan and China to achieve their cherished goals in the best possible manner. FWO, in its capacity, has been striving to play its essential part rather leading the implementation of the CPEC.

First published in our partner Mehr News Agency

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