MANSOOR JAFAR Al Arabiya Pakistan finally took the gutsy decision of handing over the strategically vital Gwadar port to China, ignoring the raised eyebrows of the US, India, and several Western and Gulf countries including Iran. Located on the Arabian Sea at the mouth of the Arabian Gulf near the strategic Strait of Hormuz, Gwadar port is at the apex of a busy trading and oil shipping route and surrounded by a region that houses around two-thirds of the world's oil reserves. Besides Pakistan and China, its natural beneficiaries will be the landlocked, but energy-rich, Central Asian Republics and Afghanistan, for whom it is the nearest warm-water seaport. The project of a world-class seaport that could monitor and share the bulk of the world's oil trade has always been a temptation for the entire world. So, Gwadar has always been a prized object inviting all the mighty countries of the world to win it. Before the creation of Pakistan, Gwadar was gifted to the Sultanate of Oman by its controller, Khan of Kalat (a present day district in resources rich Baluchistan province), as part of the dowry of his daughter when she married the prince of Muscat. Due to its strategic importance, India made several attempts to purchase it, all of which were foiled by Pakistan, and it was finally purchased back from Oman in 1958. Pakistan is just three months away from elections, and the project of Gwadar port is being seen as major political mileage that is akin to the motorway project of 1998, which was also seen as a major trade route for the newly liberated central Asian republics to the Gulf via Gwadar port. At that time, the same angry world powers opposed the motorway project, considering Central Asia as their domain which a pygmy-like Pakistan was trying to wrestle away along with innumerable trade and other benefits. Tagged with all those multi-billion dollar profit options, Gwadar port will now be operated by China, despite the vehement resistance of the US. Obviously, controlling the huge unfathomable resources of central Asia was perhaps one of the major objectives of the long and costly military campaign in Afghanistan. Despite all the lip service, the West has never been willing to give any substantial help to Pakistan which could enable it to grow into a strong economic regional power. China, on the other hand, has a long list of projects that helped Pakistan, including many defense projects, Karakoram Highway, Gwadar port, etc. After China was awarded the contract to build Gwadar port, Beijing won its operations contract on strong merit as other contenders like the UAE and Singapore were far less suitable, both economically and strategically. The UAE being owner of rival Dubai port, would have a clash of interests in the entire Gulf region, while Singapore remained unable to advance the deal, presumably due to its inability to resist Western pressure. Though former Pakistani Prime Minister Shaukat Aziz, imported from Citibank, had decided to give the operations contract to Singapore, there were reports that a certain piece of land meant for developing a duty free zone remained in dispute since it was owned by the Pakistan Navy which refused to surrender it. Sixty percent of China's oil comes from the Gulf by ships traveling over 16,000 kilometers in two to three months, confronting pirates, bad weather, political rivals and other risks up to its only commercial port, Shanghai. Gwadar will reduce the distance to a mere 2,500 kilometers and also serve round the year. Besides China, Gwadar will be a much cheaper alternative to the traders of Europe, Japan, the Far East, and Central Asia, who can use the under-construction airport to air-lift their goods from there, saving over half of the costs and time. However, from the phase of construction to operating, China has given up two subsidiary projects which were part of the original Gwadar port. Beijing refused to build the oil refinery at Gwadar, and to review the Pakistan-Iran gas pipeline through its economic experts. Nevertheless, Pakistan made “significant progress” this year in the shape of commissioning the IP gas pipeline and Gwadar port projects despite the world's sanctions on Iran. How will the US respond? It is the key question on which regional politics in the near future will rest. Both these decisions are being termed historic and a feather in the cap of the otherwise ever-notorious president of Pakistan, Asif Ali Zardari who also practically controls the affairs of the ruling PPP. He made these tough decisions at the tail-end of his party's five-year rule, leaving the consequences to be faced by the next government. — Mansoor Jafar is Editor of Al Arabiya Urdu based in Islamabad. He can be reached through email: [email protected] and Twitter: @mansoorjafar http://english.alarabiya.net/
