The Pakistani Gwadar Port Authority and China’s Xinning Enterprise have signed a Letter of Intent to boost industrial and commercial investments in the port, aiming to elevate Gwadar to a key regional trade hub. The port is of interest to rail freight as a potential far end of the International North-South Transport Corridor (INSTC), with Azerbaijan Railways earlier expressing interest in a link to Gwadar.
The Minister for Maritime Affairs, Muhammad Junaid Anwar Chaudhry, characterised the partnership as a “significant milestone” for Gwadar’s strategic importance, freight capacity, foreign investment attraction, and regional economic development. Pakistan wants to transform Gwadar into a centre for global trade.
Despite the facility having opened over two decades ago, it has not been able to solidify its position as a trade hub. But that might now change: Azerbaijan Railways expressed interest in using the Gwadar Port, now that the port is getting a rail connection with Chinese help.
Business to the port
The Chinese may now be coming in with even more aid for Gwadar. The goal is to mitigate one of Gwadar’s biggest challenges: it is far off from industrial centres, making it difficult to catch freight for shipments. The Chinese Xinning Enterprise is committing itself to bringing business to the port, by launching industrial projects, optimising the free trade zone, and developing Gwadar as a transshipment hub.
More business and an INSTC connection could, theoretically, position Gwadar favourably for future transports. Through Azerbaijan, the INSTC links up to the Middle Corridor, providing rail freight options both east and west: to Central Asia and China, but also towards Europe.