PUBLISHED IN AFGHANISTAN TIMES 2006-08-26
Gwadar and Chabahar Sea Ports
Good trade alternatives for Afghanistan
Saifullah Ahmadzai
Regional Studies Center of Afghanistan
Gwadar and Chabahar Sea Ports
Good trade alternatives for Afghanistan
Saifullah Ahmadzai
Regional Studies Center of Afghanistan
Since Afghanistan is a landlocked country which is in vital need to have access to sea besides having air, and land trade routs. Afghanistan location is as a hub between Central and South Asia and the Middle East and Far East presents enormous opportunities for the country to serve as a center for regional trade and commerce. Afghanistan lies across ancient trade routes and can now once again reclaim its historical role. Now that political stability is being achieved, institutions are being rebuilt, and basic infrastructures are developing, private sector activities are increasing which will lead to positive changes not only for Afghanistan, but for the region as well but still security is a big challenge. In the recent development two new sea ports is establishing in the region in which Afghanistan can play active role as a land bridge between South and Central Asia that is Gwadar and Chabahar Sea Ports.
The Gwadar port project was started in 1992 but was delayed due to political instability in Pakistan, following change of the Nawaz Sharif government. Although the Gwadar Port project has been under study again since May 2001, the U.S. entry into Afghanistan provided an added impetus for its speedy execution. Having set up its bases in Central, South, and West Asian countries, the U.S. brought its military forces at the doorstep of China. It was now alarmed to see the U.S. extend its reach into Asian nations that ring western China. China feels defenseless in the Persian Gulf against any hostile action to block off its energy supplies. This defenselessness set Beijing scrambling for alternative safe supply routes for its energy shipments. The planned Gwadar Deep Sea Port was one such alternative for which China had flown its Vice Premier, Wu Bangguo, to Gwadar to lay its foundation on March 22, 2002.
The Gwadar port project arose from a China – Pak agreement signed in March 2002. The project was sited in an obscure fishing village of Gwadar in Pakistan's western province of Baluchistan, bordering Afghanistan to the northwest and Iran to the southwest. Gwadar is nautically bounded by the Persian Gulf in the west and the Gulf of Oman in the southwest.
Gwadar is also visualized as becoming a regional hub, its location at the mouth of the Persian Gulf and at the opposite end of the strategic points of Straits of Hormuz and the Gulf of Oman enhances its strategic importance. Its development could as well favorably influence the geo-strategic environment of the region. Gwadar lying close to the oil rich Gulf-states could be a potential source of off–shore gas and oil reserves.
The gwadar port is planed to be completed through deferent phases. The phase-1 was completed by public sector with the Chinese assistance. The second phase of Gwadar Deep Water Port Project was expected to be completed by 2010. Sources said that the phase-2 would be executed by private sector. However according the daily Jang newspaper (Rowland) Thursday 24, 2006 the China’s president will visit Pakistan on next November to participate in an opening ceremony of Gwadar sea port.
It is conjectured that once the Gwadar port complex is completed, nearly twenty countries of the Middle East, Central Asia and South Asia could benefit from the mega-project. The complex will provide facilities of warehousing, trans-shipment, transit and coastal trade, commercial and industrial openings for international export-import trade. This is especially from and to Afghanistan, the CARs (Central Asia Regions), Persian Gulf states, UAE, Oman, Saudi Arabia, Qatar, Iraq, Iran and other countries.
Of late, Balochistan, a neglected and backward province, has started getting increased attention. It may have, for example, five modern airports, with several flights a week. A modern mini-port is under operation at Pasni. 515-km long highway connecting Gwadar via Panjgpur, Khaan, Chaghi and Rabat up to Herat in eastern Afghanistan is on the drawing boards.
All these developments if and when brought to fruition may ultimately help the CARs to actively participate as ECO members. For Afghanistan, a landlocked country and desperately needing export outlet, the construction of Gwadar port complex will help in boosting economic rehabilitation and activity. Any movement of goods to and from Balochistan will benefit Afghan transit trade as well as the former's export of minerals and dry fruit. Besides, the port facilities could provide Afghanistan and the CARs warehousing facilities along with transit and possibilities of import of goods.
The Gwadar port could set up export-free and industrial zones. In addition, the launching of such ambitious plans for the development of Gwadar seaport could serve as a catalyst for fast track development and transformation of Balochistan from a primitive, tribal society into 21st century.
Initially, China was reluctant to finance the Gwadar port project because Pakistan offered the U.S. exclusive access to two of its critical airbases in Jacobabad (Sind) and Pasni (Baluchisntan) during ordering the U.S. troops into Afghanistan. According to Times of India report on February 19, 2002, Gen. Musharraf had to do a lot of explaining for leasing these bases to America. China, the Times of India reported, was also upset with Pakistan for allowing the U.S. to establish posts in Pakistan's Northern Areas, which border Xinjiang and Tibet. When China finally agreed to offer financial and technical assistance for the project, it asked for "sovereign guarantees" to use the Port facilities to which Pakistan agreed, despite U.S. unease over it.
The realization of economic and strategic objectives of the Gwadar port is largely dependent upon the reduction of separatist violence in Baluchistan. The external concerns are stoking internal challenges to the port project. Baluchistan, where the project is located, is once again up in arms against the federal government. The most important reason for armed resistance against the Gwadar port is that Baluch nationalists see it as an attempt to colonize them and their natural resources. Several insurgent groups have sprung up to nip the project in the bud. On May 3, 2004 killed three Chinese engineers working on the port project that employs close to 500 Chinese nationals. Pakistan blamed India and Iran for supporting insurgency in Baluchistan.Development of the Gwadar port, which is located in the relatively backward province of Baluchistan would benefit its overall economy and unlock its potential. Regrettably, both local people and tribal leaders are not excited about the project. In fact, some are actively opposing it. Their fears are that outsiders, whether foreign or domestic, will undertake the development work and that this will threaten the identity and livelihoods of the locals. Tribal leaders who have monopolized power in Baluchistan are apprehensive of losing their hold when the project materializes. This would entail building consensus through a sustained and well-coordinated political process and winning local confidence.
In particular, the port project set off alarm bells in India which already feels encircled by China from three sides: Myanmar, Tibet, and Pakistan. To counter Sino-Pak collaboration, India has brought Afghanistan and Iran into an economic and strategic alliance. Iranians are already working on Chabahar port in Sistan-Baluchistan, which will be accessible for Indian imports and exports with road links to Afghanistan and Central Asia. India is helping build a 200-kilometer road that will connect Chabahar with Afghanistan. Once completed, Indians will use this access road to the port for their imports and exports to and from Central Asia. Presently, India is in urgent need of a shorter transit route to quickly get its trade goods to Afghanistan and Central Asia. Afghanistan and India are agreed to use Chabahar as a center for bilateral exchange. This decision is a negative answer to the last decision of Pakistan not to allow Indian transit goods to Afghanistan. Even though, Afghanistan was connected with Karachi port from 1960 however, as a result of bilateral transit trade agreement with Iran and geo-politic changes in the region, Afghanistan pays attention to Chabahar as a bilateral trade exchange center.
There are two ports in Iran that are utilized to transit goods to and from Afghanistan, Bandar Abas and Chabahar. Afghanistan concluded a transit agreement for Bandar Abas in 1974.and concluded the transit agreement for Chabahar in 2003. Chabahar Port is situated on the eastern shore of Chabahar in the Sistan Baluchestan Province of Iran. Strategically located outside the Persian Gulf in the Oman Sea east of the Straits of Hormuz, the port is close to the mainline shipping routes to Africa, Asia and Europe and is well placed to act as a global gateway to the Central Asian States and neighboring countries.
Two years ago, Prime Minister, Mr Atal Behari Vajpayee, and Iranian President, Mohamad Khatami, announced the plan to develop the “Chahbahar route” in the Delhi Declaration which would give India more immediate access to Afghanistan and Central Asia. Development of the Chabahar port is part of a tripartite agreement between Iran, India and Russia to set up the North-South transit passage to facilitate faster movement of cargo and cut down costs. The Chabahar project is planed to be completed by 2007.
The strategic geographical location of the port gives it significant advantages over other ports in the region. Chabahar Port is foreseen as the gateway to the Eastern Transit passage to Afghanistan as well as the other landlocked countries Tajikistan, Kyrgyzstan, Kazakhstan and Uzbekistan and is an essential link in the Eastern passage route. The Sea is the only route for Indian goods bound for Afghanistan and certainly a much shorter route to Central Asia, with Pakistan not allowing overland transit.
The chief advantage of Chabahar, however, is its location towards the Pakistani border in southern Iran, significantly decreasing distance and travel time. The distance from Mumbai to Bandar Abbas is 1,987 km, while it is just 768 km till Chabahar. It is also closer to Afghanistan, cutting the period for goods to travel from the port to their destination by several days, compared to Bandar Abbas.
In order to implement the Chabahar project which is closer to Afghanistan, it depends upon resolving the disputes raised over the IRAN uranium enrichment program, through negotiation.
In the conclusion, diversifying trade routs are in the interest of every country and this is in the interest of Afghanistan to use both the Gwadar and Chabahar Ports as well as Karachi port as an equal way even though, Karachi Port is too busy most of the time dam bridging Afghanistan transit goods from the other hand Gwadar and Chabahar ports will provide many facilities and will shorten the distance comparing to Karachi and Bandar Abase Ports. From my point of view joint economic environment and trade relations removing lack of confidence, bringing brotherhoods atmosphere which is in the interest of the entire region.
E-mail: Saifullah_ahmadzai2001@yahoo.com