GWADAR

PORT

Industrial Power House and Gateway to CPEC

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Sequence of Presentation

Introduction of Gwadar Port & Port Master Plan

First Concession Agreement

2007-2048

Terminal & Free Zone

Development

CPEC & PSDP

Projects

Future Port Projects

Pakistan is a cross-road between Central Asia and South Asia as well as West and East Asia. Gwadar’s location, being close to the Gulf region, is of strategic importance

LOCATIONGwadar

Port

Gwadar Port is located at the mouth of the Arabian Gulf, just outside the Strait of Hormuz, touching the key shipping routes in and out of the Gulf

The sea channels off the coast of Gwadar carry roughly 15-17 million barrels of oil every day (or a third of all the seaborne oil traded in the world).

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Tehran

Mary

Tashkent

Urumqi

Xi,an

Ankara

Moscow

Gwadar Port Master Plan

▰ A 50-year Port Master Plan was approved

for Gwadar Port in 2006 for operation,

management and further development.

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▰Based on the Master Plan, the

operations of the Port were

assigned to a Port Operator

(PSAI) after ICB under a

Concession Agreement for 40

years during 2007

▰Concession rights were

transferred to COPHC in 2013 INDUS ASSOCIATED CONSULTANTS (PVT) LTD

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• Channel depth 20 m

• >80 berths of various categories i.e. Container,

RORO, Clean & Dirty Bulk, Oil, LNG and Liner /

Ferry terminals, Off-Shore Oil Loading /

Unloading

TodayIn 2-3 yrs

In 5-7 yrs

In 10-30 yrs

& beyond

Koh-e-Medi

Koh-e-Bateel

Port to Port Relationship

▰Sister-Port Agreement with Qingdao Port

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Gwadar Port: an important port on One Belt—One Road & CPEC regional connectivity plans

▰ Sister-Port Agreement with Zhuhai Port

▰ Sister-Port MoUwith Chabahar Port

▰Port-to-Port Cooperation Agreement with Port of Turkmenbashi (under negotiation)

Nov 2014 Oct 2015 April 2015

Existing Port Faciities

Berths

▰ 3 Multi-purpose Berths, 200m each

▰ 1 RORO Facility for Vehicle Import / Export

▰ 1 Service Berth Length 100m

Cranes

▰ 05 STS Cranes

▰ 02 Bulk Cargo / Multipurpose Cranes

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Channel

▰ 4.7 KM short approach channel

▰ Channel & berth side depth -14.5m

About 210,000 sq meter area for cargo storage

Ready to handle 50,000 DWT vessels

First Concession Agreement

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▰ The CA covers following broader areas:

Gwadar Port Operations (based on BOT model) were handed over to China OverseasPorts Holding Co. Ltd. through an Assignment & Transfer Agreement in May 2013 fromPort of Singapore Authority.

Container terminals (Initial & Expansion)

Free Zone Area

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Marine Services

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Gwadar Port Terminal Development: Status

▰ Terminal is operational: new cranes, container scanner, additional storage area

▰ First ship-liner (COSCO) has started calling at the port since March 2018

▰ WEBOC updates 10

▰COPHC has completed feasibility on construction of 1,000 meter long new terminal with 5 additional berths

▰ LPG unloading & storage facility ready to start business

Gwadar Port Terminal Development: Status

▰ The Gwadar International Terminal has signed a series of new contracts,involving annual transportation demand for about 1 million tons of phosphateand 300,000 tons of LPG, regular weekly liner service of shipping to/ fromKarachi, Port Qasim, Jabel Ali, Sharjah and Khalifa Port. Therefore, Gwadar Portis going to reach its design capability.

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Incentives at Gwadar International Terminal (GITL)

Speedy custom

clearance

Competitive handling charges

Assurance No demurrage

charges

Free Storage up to 03 months

First Terminal Expansion Plan

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The renovation of existing terminal completed: the cargo handling capacity of 1,600,000 tons and container of 100 ,000 TEU after renovation.

Dry Bulk berth: to build a 150,000-ton dry bulk berth with the handing capacity of about 10,000,000 tons / year. The berth is 322m long with 22 hectares of land behind.

Mineral Ore berth: to build a 200,000-ton ore berth with the handing capacity of about 13,000,000 tons / year. The berth is 368m long with 14 hectares of land behind.

Oil loading &

unloading berth: to

build a 250,000-ton

crude oil berth with the

handing capacity of

about 17,000,000

tons/year. The berth is

515m long with 14

hectares of land behind.

General Cargo berth:

build a 70,000-ton

general berth with cargo

handing capacity of

20,000,000 tons and

container of 100 ,000

TEU. The berth is 285m

long with 21 hectares of

land behind.

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Gwadar Free Zone Development: Status

▰ GFZ has two portions: ▪ Southern Initial/Pilot Zone ▪ Northern Main Zone with different sub-zones

▰ GFZ Pilot development completed and inaugurated on 29 Feb 2018 with a cost of US$ 160 million. Additional investment of US$ 250 million will be from 7 main investors

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▰Construction of two industrial units started

▰Development works on Northern Main Zone has started

Gwadar Port Free Zone – Initial Area

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Gwadar Port Free Zone – Initial Area

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Gwadar Port Free Zone

Gwadar Free Zone Incentives

▰GPA & COPHCL, through the Government, have arranged various incentivesand facilities to local & foreign investors in Gwadar Free Zone in addition tostandard facilities. The Zone is developed and operated by GFZCL.

▰23 years completetax holiday from allFederal, Provincial andlocal taxes.

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▰100% exemptionfrom import duties onmaterials andequipment.

▰99 Years lease forsub-lessee/ investors.

▰ One WindowFacility Service.

▰100% foreignownership for foreigninvestors.

▰World Class infrastructureand security arrangement.

Advantages and Opportunities

Competitive advantages

◼ Ship related industries e.g. shipyard

◼ Food processing, fish-processing, Halal Food Processing

◼ Export industries that meet Gulf states’ import needs e.g. automotive, consumer goods

◼ Oil & gas related processing and downstream industries e.g. petrochemicals

◼ Land intensive industrial complexes e.g. steel mill. Low cost of port and industrial development

◼ Minerals processing e.g. building materials, cement

◼ Industries that require large ExIm quantities and corresponding ship sizes e.g. oil refining

Industrial development opportunities

◼ Proximity to major shipping lanes

◼ Some agricultural resources, incl coastline

◼ Low labour cost

◼ Proximity to oil & gas resources

◼ Greenfield, low land cost, low development costs

◼ Some mineral resources

◼ Short access channel, deep draft, short turnaround times

industrial development potential – comparative advantages

◼ Export-oriented manufacturing◼ Tax-free status for new investments + incentives + port proximity

◼ General – Gwadar has the potential to become a large city with a large and diversified economic and industrial base.

On the longer term, all possible industrial sectors and sub-sectors will appear in Gwadar

◼ Heavy industries – There is good potential for investments in specific heavy industries in Gwadar, namely steel

making, cement, building materials, car assembly, shipyard and marine services (e.g. ship breaking). These industries

leverage on specific advantages of Gwadar i.e. greenfield, availability of land, availability of factor inputs etc. Most of

these industries have substantial port and economic impacts and spin offs. Some potential for minerals-processing

◼ Manufacturing – The development of a textiles & clothing industry in Gwadar is certain. It will be a significant

contributor especially in terms of employment. The food processing sector and building materials have moderate

potentials. Many other export-oriented industries can also be attracted due to Gwadar’s advantages (new port, tax-free

status)

◼ Petrochemicals – Particularly in the oil and gas sector, Gwadar has strong potential. To tap this potential, efforts need

to be directed towards attracting oil refining, petrochemicals and gas. These facilities are essential to trigger and

facilitate the development of numerous downstream petrochemical complexes, gas-based industries, chemical

industries and energy-intensive industries

Gwadar’s industrial development potential

Future Projects of GPA

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✓ Construction of Petroleum/Petrochemical Terminal

✓ Construction of LNG/LPG Terminal

✓ Establishment of Refineries, Petroleum/ Petrochemical Storage & Processing

Zone

✓ Construction of Iron Ore/Mineral/Coal Handling Terminal

✓ Establishment of Steel Mill & Mineral Processing Zone

✓ Construction of Liquid Chemical & Edible Oil Terminal

✓ Construction of Clean Dry Bulk Terminal

✓ Establishment of Chemical Processing Zone

✓ Establishment of Gwadar Port Marine Institute (GPMI)

Construction of Petroleum / Petrochemical Terminal

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• PC-II for Feasibility study approved at a cost of Rs. 57.50 Million• The feasibility covers the technical aspect of the terminal but will also suggest a financial model

for its construction and operations, preferably on BOT basis. • After completion of the feasibility study International Competitive Bidding (ICB) will be initiated

for selection of an investor/operator of this port facility.• GPA will provide sea-frontage land and some backup area for the purpose and would be collecting

rental charges and royalty

Construction of LNG / LPG Terminal

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GPA will provide sea-frontage land and some backup area for the terminal to Port

Developer / Operator , based on Landlord model.

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Establishment of a Refinery, Petroleum

/Petrochemical Storage & Processing Zone

For developing the backup area of the

Petroleum/Petrochemical Terminal, this industrial zone has

been planned to develop as a Special Economic Zone

based on some suitable development model at around

1,500 acres of land on BoT/BOO model through ICB.

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Construction of Clean Dry Bulk Terminal

GPA will invite Port Developer/Operator Companies for construction of Clean Dry Bulk

Terminal through International Competitive Bidding (ICB) based on Landlord Model.

•A dedicated terminal for handling of various types of grains, fertilizer, cement, clinker etc.

•GPA will provide sea-frontage land and some backup area for the purpose and would be

collecting rental charges and royalty.

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Establishment of

Chemical Processing Zone

•Developing of this Zone contiguous to the backup area of the Chemical Cargo Handling

Terminal, a Special Economic Zone will be developed based on some suitable development

model at 1,500 acres of land.

•The zone will be for all types of allowable chemical processing plants like pharmaceutical,

other clean chemical product manufacturing, edible, fertilizer etc. and storage for clean bulk

cargo.

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• Based on Landlord Model, GPA will invite Port Developer and Operator Companies for construction of this terminal through International Competitive Basis (ICB).

• GPA will provide sea-frontage land and some backup area for the purpose and would be collecting rental charges and royalty.

Construction of Iron Ore / Mineral Terminal

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Establishment of

Steel Mill & Mineral Processing Zone

For developing of this Zone contiguous to the backup area of the Iron Ore/Mineral

Terminal, this a Special Economic Zone will be developed based on a suitable

development model at 2,000 acres of land.

The Zone will include a steel mill and mineral-related industry.

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THANK YOU