The commercialization of Gwadar Port, a multi-billion-dollar project built over a decade ago, has failed to materialize, leaving the facility underutilized and far from its envisioned role as a regional transshipment hub. This was the key takeaway from a high-level meeting on the operationalization of Gwadar Port, chaired by Planning and Development Minister Ahsan Iqbal on the directives of Prime Minister Shehbaz Sharif.
The minister criticized the Ministry of Maritime Affairs (MoMA) and the National Logistics Cell (NLC) for their lack of marketing efforts and unprofessional handling of what he called the “crown jewel” of the $50 billion China-Pakistan Economic Corridor (CPEC). He noted that the port’s failure to attract trade and generate employment opportunities has turned it into a “white elephant.”
Concerns Over Gwadar’s Underperformance
Sources revealed that stakeholders, including the government, are increasingly uneasy about Gwadar’s inability to compete with similar regional facilities. The lack of trade activities has hindered economic growth and failed to deliver on promises of business and employment opportunities for locals. This, combined with poor civic amenities such as water and electricity shortages, has fueled unrest and protests in the area, which external factors have reportedly exploited.
In response, Prime Minister Shehbaz Sharif recently directed that 60% of all public sector cargoes be routed through Gwadar to stimulate port activity. He also tasked the planning minister with investigating the reasons behind the port’s stagnation and recommending corrective measures.
During the meeting, Planning Minister Ahsan Iqbal expressed concern over the absence of representation from the Balochistan government in discussions about Gwadar’s operationalization. He criticized the lack of marketing efforts to attract transshipment cargo, noting that authorities had failed to engage with international shipping companies and traders to highlight the cost advantages of using Gwadar over traditional routes.
“This comparative analysis for competitive marketing should have been in full swing two years ago to generate trade and shipment activities and provide employment opportunities to the local people,” the minister said. Without such efforts, he added, Gwadar Port has become a “white elephant.”
The minister also pointed out that Central Asian Republics (CARs) were willing to transport their cargo through Gwadar, but Pakistan had not developed a business strategy to capitalize on this opportunity. He urged authorities to learn from neighboring countries that build product reputations and attract international attention even before launching their services.
Recommendations for Revival
To address the port’s challenges, the minister directed the hiring of an international consultant to conduct a cost-benefit analysis of shipments through Gwadar compared to other regional ports. The consultant would also assess the shorter route’s potential to reduce shipment duration and costs, which could be marketed to attract business through Pakistani missions abroad.
The minister further criticized the NLC for charging high rates for cargo transport through Gwadar, advising them to focus on generating greater revenue by handling larger volumes of cargo at competitive rates.
