China All Set to Take Over Gwadar Port

Set to take over operations of Pakistan's strategic Gwadar port in the Arabian Sea, China today said the move is part of the continued cooperation between the two countries.

"China and Pakistan are friendly neighbours. Chinese companies have long been actively participating in Pakistan's foreign cooperation projects in all fields", Chinese Foreign Ministry Spokesman Hong Lei said in a media briefing here today.

He was replying to a question on a Pakistan Cabinet decision allowing transfer of a concession agreement from Port of Singapore Authority (PSA) to the China Overseas Port Holding Limited (PRC).

China will actively support cooperation in all areas as long as it is good for China-Pakistan friendship and the development and prosperity of Pakistan, Hong said.

Taking over Gwadar operations means that Beijing would be undertaking the biggest infrastructure project in Pakistan after the Karakorram Highway road project connecting the two countries in 1976.

China will be stepping into the port located at the entrance of the Persian Gulf, about 75 km east of Pakistan's border with Iran.

The move has also evoked apprehensions among the Indian strategic community in India as Gwadar in the proximity of Mumbai port.

PSA pulled out of its 40 year old contract to run the port citing a host of difficulties including Pakistan’s failure to fulfil its commitments to build a motorway link to service the port and transfer land for the expansion of the port.

Pakistan officials have been pushing for long for China's take over of the port to make it the hub of an oil pipeline, connecting with the Karrakoram Highway.

Currently the bulk of the Chinese oil supplies from Middle East pass trough the Indian Ocean. Use of Gwadar could drastically reduce the distance.