Call to port

This letter refers to the article ‘Amplifying port benefits’ by Kaiser Bengali (May 14, 2020). The writer praises the government decision to open the Gwadar Port for Afghan Transit Trade. I am more sceptical. Any potential gains depend upon the reaction of shippers and consigners. Diverting traffic from an efficient, low cost port with inland railroad linkages to a high cost port at a longer distance, without proper upland linkages and ancillary services, cannot be a positive step. It will significantly raise the costs of transporting Afghan goods and will be harmful for both the economies of Pakistan and Afghanistan.

The Gwadar Port is already a failed project. It is located too far from Pakistan’s major markets, has no inland road links, while the surrounding location is barren and does not generate a single ton of export or imports. Most importantly, economic activity in the area is hindered by the scarcity of water. It is a most unsuitable location for a port. Its use as a port will increase the cost of imports and exports, harming the economy in the long run. Despite investing billions of rupees on port and road facilities and handing over its management to Chinese companies, traffic remains abysmally low. Although the port was inaugurated twice before, by Pervez Musharraf and Nawaz Sharif, by farcically diverting a ship and some trucks to the port for television shows. It is possible that if Afghan transit trade is shifted from Karachi/Qasim ports, the trade may go to Chahbahar (Iran) rather than Gwadar.

Abdul Majeed

Islamabad