Chinese SOE to develop SEZ at strategic Pakistani port of Gwadar

BEIJING – The State-owned China Overseas Port Holding Co Ltd which operates the port of Gwadar in Pakistan, has been granted permission to set up a special economic zone (SEZ) over 152 hectares of land at the deep-water seaport. The SOE will be leased the land – which has strategic importance in terms of its location between South and Central Asia and the Middle East – for 43 years.

Among other facilities, the Zone will have a large exhibition centre showcasing Chinese and Pakistani products.

As part of the agreement, the Hong Kong-based Chinese company will be in full charge of the Gwadar Port, the third-largest port in Pakistan that sits at the mouth of the Persian Gulf and is close to a number of important sea routes like the Straits of Hormuz, through which one-fifth of the world’s oil shipments pass.

China is expected to invest US$1.62 billion in the Gwadar project, including construction of an expressway linking the harbuor and coastline, a rail link, breakwater and nine other projects expected to be completed in three to five years. www.webershandwick.com (ATI).