Gwadar-Kashgar INTERMODAL Network

Understanding Economic Benefits of Trade-Corridor Between
Gwadar-Kashgar INTERMODAL Network
presented by
Mr. Aasim Siddiqui
Ex-Chairman, All Pakistan Shipping Association (APSA) & Managing Director – Marine Group of Companies
PAKISTAN AT A GLANCE
Population 184 Million
GDP
US$ 310.42 Billion
Per Capita Income US$ 1684
GDP Growth Rate 3.6 %
Imports
US$ 40.19 Billion
Exports
US$ 24.46 Billion
Foreign Direct Investment
US$ 1.45 Billion
Major Crops
Cotton, Wheat, Rice, Sugarcane.
Major Industries Textile, Cement, Fertilizer, Steel, Agro Food Electrical Goods, Transport & Logistics
Seaports
Karachi, Bin Qasim, Gwadar
Source: Economic Survey 2012‐13
Government Bodies In Intermodal Network
SEA
ROAD
Karachi
Port
Trust
National Highway
Authority
AIR
Port
Qasim
Authority
RAIL
Civil
Aviation
Authority
Gwadar
Port
Authority
Pakistan
Railway
The Global Trade Of China - Imports 
The Global Trade Of China - Exports
The Global Trade Of China – Container Traffic
The Global Trade Of China – Shipping Route 
EXISTING Europe – Western China (19132 miles)
DISTANCE Middle East – Western China (12537 miles)
EUROPE
Gwadar
Port
  Kashgar

MIDDLE EAST
WESTERN CHINA
ASIA
2625 MILES
Shanghai Port 
PAKISTAN
4645 MILES
2662 MILES
MIDDLE EAST
5250 MILES
AFRICA
EUROPE
11845 MILES
2000 MILES
LONG DISTANCE & HIGH COST The Global Trade Of China – Shipping Route 
DISTANCE Europe – Western China (9535 miles)
Middle East – Western China (10242 miles)
SAVED
EUROPE
MIDDLE EAST
1750
MILES
ECONOMIC CORRIDOR
CENTRAL CHINA
  Kashgar

ASIA
PAKISTAN - CHINA
1331 MILES
 Gwadar Port MIDDLE EAST
545 MILES
AFRICA
EUROPE
7847 MILES
SHORT DISTANCE & LOW COST The Global Trade Of China – Energy Transport 
OIL IMPORTS
US$ 314 BILLION
Source: International Trade Centre (2013)
Pakistan – China | Economic Corridor 
US$
20
BILLION
Worth Development Projects
1
Highway
Gwadar – Kunjrab
2
Motorway
Karachi – Lahore
3
Expressway
Muzaffarabad – Mirpur
4
Freight Trains
Gwadar - Kunjrab
KHUNJERAB
Pak – China Economic Corridor
Pakistan – China | Economic Corridor 
1
Highway
Gwadar – Khujerab
KHYBER
ATTABAD
GILGIT JAGLOT
PARI
CHILAS
BESHAM QILA
MANSEHRA
PESHAWAR
Length (Approx)
Terrain
Lanes
Lane width
Shoulder width
Design Speed
Bridges, Tunnels and Avalanche Galleries
Estimated Cost
N‐40
2,395 Km
AFGHANISTAN
Mountainous, Rolling, Flat
2‐6
3.65 m
2 – 3 m (outer)
1 – 2 m (Inner)
70 – 120 Kph
QUETTA
2 ‐ 4 lanes
HARIPUR
ISLAMABAD
ISA KHEL
KUNDIAN
FAISALABAD
N‐70
LAYYAH
TAUNSA
MULTAN
DG KHAN
RAJANPUR
INDIA
SUI
JACOBABAD
KHUZDAR
LAHORE
JAMPUR
DERA ALLAH YAR
NAG
RATODERO
LARKANA
SUKKUR
Gwadar ‐ Kunjerab
M‐8
Highway
TURBAT HOSHAB
ani
GWADAR
N‐10
DISPUTED TERRITORY
MUSA KHEL
MIANWALI
DARYA KHAN
DERA BUGTI
PANJGUR
MUZAFFARABAD
ABBOTTABAD
SKARDU
FATEHJHANG
PINDIGHEB
Rs. 1,200 Billion
IRAN
GOR
KARACHI
Pakistan – China | Economic Corridor 
2
Motorway
Karachi – Lahore
DG KHAN
NANKANA SAHIB
JARANWALA
PIR MEHAL
TANDLIANWALA
ABDUL HAKEEM
MAMUNKAJAN
LAHORE
KHANEWAL
MULTAN
SAHIWAL
SHUJABAD
JALALPUR PIRWALA
UCH SHARIF
TARINDA MUHAMMAD PANAH
JACOBABAD
ZAHIR PIR
RAHIM YAR KHAN
GHOTKI
PANU AQIL
SUKKUR
PIRJO GOTH
KANDIARO
DADU
JOHI
DUREJI
KARACHI
HYDERABAD
Karachi ‐ Lahore
Motorway
Length (Appox) 1,186 Km
Terrain
Flat, Mountainous, Rolling Lanes
6
Lane width
3.65 m
Shoulder 3 m (outer) 1m width
(Inner)
Design Speed 120 Kph
Tunnel
To be determined after feasibility study
6 Lanes over Indus, Bridges (Tentative)
Ravi and Sutlej
Estimated Rs. 677 Billion
Cost
Pakistan – China | Economic Corridor 
3
Expressway
Muzaffarabad – Mirpur
MUZAFFARABAD
DOLAI
CHATTAR KALAS
Length (Approx)
Terrain
196 Km
Mountainous, Rolling Lanes
4
Lane width
3.65 m
ISLAMABAD
Shoulder width 3 m (outer)
1 m (Inner)
Design Speed
120 Kph
FATEHJHANG
Bridges, 4 Lanes
Tunnels and Avalanche PINDIGHEB
Galleries
Estimated Cost Rs. 75 Billion
DINA
BURHA JUNGLE
KOHALA BRIDGE
AZAD PATTAN
PONA
THAR
Muzaffarabad ‐ Mirpur
BALATHI
Expressway
RAMKOT
MANGLA / MIRPUR
Pakistan – China | Economic Corridor 
ASIAN HIGH WAY ROUTE MAP (ASIA)
CHINA
INDIA
Gwadar
Karachi
Pakistan – China | Economic Corridor 
4
Freight Trains
Gwadar - Kunjrab
Kashgar
Peshawar
China
Dera Ismail Khan
Khunjrab
Pakistan
Quetta
Lahore
Ministry of railways in
cooperation
with
Chinese
Consortium
will establish GwadarKhunjrab Rail Link at
an estimated cost of
over
US$ 2.3 Billion
Track Access Project (rail route for private sector)
Regional Connectivity
(with China)
Regional Connectivity
(with Afghanistan)
Regional Connectivity
(with India)
Regional Connectivity
(with Iran)
Gwadar
Pakistan
Karachi
Bin Qasim
Pakistan – China | Economic Corridor 
Kashgar
Peshawar
Torkham
A Marine Group Project
I n t e r m o d a l I n i t i a t i v e
Kunjrab
Chaman
Daud Khel
Kho‐i‐Taftan
Lala Musa
Inland Container Depot
Lahore
Wagah
Khokarapar
Pakistan
Intermodal
Ltd. (PIL) will be
Pakistan’s First Private
Train
Operator,
to
facilitate efficient and
cost effective freight
movement
between
Pak-China
Economic
Corridor through its
well
established
intermodal
network
across Pakistan.
PIL Freight Route
(rail track for private sector)
Container Terminal
Bulk Terminal
Gwadar Port
Karachi Port
Port Qasim
Regional Connectivity
(with China)
Regional Connectivity
(with Afghanistan)
Regional Connectivity
(with India)
Regional Connectivity
(with Iran)
Pakistan – China | Economic Corridor 
INTERMODAL SERVICE INFRASTRUCTURE
Port
Freight Forwarding
SERVICES
Hinterland
TRANSPORT
Container Terminal
Road Transport
Inland Container Depot
Ship Called At Ports
Stevedoring
Freight Train
Bulk Terminal
Shipping
SERVICES
Clients
THE FUTURE OF ECONOMIC CORRIDOR
A WIN-WIN SYNERGY FOR PAKISTAN & CHINA
Pak‐China Trade will cross
US$ 15 Billion by
5.00
Exports US$ Billion
Imports US$ Billion
4.50
4.00
4.73
Pak‐China
Free Trade Agreement Signed
4.14
3.03
3.00
2.71
2.70
2.32
2.50
2.09
2.01
2.00
1.65
1.53
1.21
1.14
1.00
0.50
4.28
3.28
3.50
1.50
2015
0.26
0.28
2004
2005
0.41
0.55
0.67
0.66
0.00
2006
2007
2008
2009
2010
Pak‐China Trade Over Years
2011
2012
2013
Source: State Bank of Pakistan – Trade Statistics
THE FUTURE OF ECONOMIC CORRIDOR
A WIN-WIN SYNERGY FOR PAKISTAN & CHINA
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A Congenial Legal Framework
>
Transport Service Opportunities
>
Establishing Inland Container Depots (ICDs)
The cross‐border trade between Pakistan and China would require a congenial custom policies and regulations so
as to encourage the business community in the both the countries to actively take part in the growth and
development of this economic corridor.
Transport companies can explore more avenues of business and seek opportunities in the new markets through
joint ventures and investments in this economic corridor
The Pak‐China economic corridor will bring huge volume of cargo to and from China & Pakistan and will require
freight stations at various locations to bring port services closer to shippers in the hinterland through specialized
rail‐road services and decongesting the cargo traffic.
Efficient Freight Villages
>
Ideally the facility will be located close to a major metropolitan areas both in China and Pakistan which will also serve as a market or supplier of much of the goods that pass through. A freight village can raise the likelihood that smaller firms utilize intermodal transport and opportunity for shared services is potentially very large and can range from those associated strictly with the movement of goods to those associated with serving the nearby residential population.
THE FUTURE OF ECONOMIC CORRIDOR
A WIN-WIN SYNERGY FOR PAKISTAN & CHINA
>
>
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Competitiveness in Export Markets
As soon as Pak‐China Economic corridor become operational; it will
substantially effect the cost of market access for China, giving its products a
more competitive edge in export markets. Similarly, Pakistan will have a
convenient access to Chinese markets for increasing trade between both the
countries.
Pak-China
Economic
Corridor
Infrastructure
Development
Strong Buyers/Suppliers Base
Business
Opportunities
China is the second largest trading partner of Pakistan in Asia; which will be
strengthen through this corridor as both the countries may find strong
buyers/suppliers in various sectors of mutual interest
Efficient
Transport Routes
Energy Projects
Pak‐China Economic Corridor will also initiate 19 energy projects of worth
US$ to generate over 22,000 MW electricity both in public and private
sector which will support the industrialization in the Special Economic Zones
(SEZs) being developed across this corridor
Environment Friendly Countries
Reducing the transport distances will substantially conserve fuel resources and
reduce carbon emission for creating a clean‐air environment in the region
Expanding
Regional Trade
Job
Creation
Raising
Per Capita Income
Economic
Prosperity
Of Nations
THE NEXT STEP
LETS MEET & DISCUSS OPPORTUNITIES
THANK YOU