Government Acts to Curb Issues related. to Gwadar Port
Gwadar Port is among the multi-billion-dollar projects commissioned more than ten years ago and still hasn’t reached its target as a top transshipment centre Despite becoming a significant future component of the economy of Pakistan, the port of Gwadar has failed so far to induce global trade or shipping.
At a recent meeting, Pakistan’s Minister for Planning and Development, Ahsan Iqbal, severely criticized the Ministry of Maritime Affairs and the National Logistics Cell (NLC) for failing to market Gwadar Port properly and the unprofessional management of the port. He further noted that the port is behind its regional competitors in terms of trade activity, primarily because its promotion effort is lagging and the business strategy of the port was not clear.
The most significant gap that was outlined included the unavailability of any significant marketing policy. This had seen Gwadar Port lose its appeal towards shipping companies as well as foreign traders. So far, this port is poorly utilized compared to other regional ports such as Middle East ports.
To address these issues, Prime Minister Shehbaz Sharif directed that 60% of all cargo carried by the public sector be routed through Gwadar. The move is to increase port activity and enhance its operations. In addition, the Planning Ministry has been directed to probe the causes of the port’s underperformance and suggest how it can be improved.
Another suggestion by Minister Ahsan Iqbal was to appoint an international consultant, who would study the cost-benefit analysis to compare Gwadar with the other. ports around the world. In this way, strategies for marketing and bringing more business to the port could be developed.
The Planning Minister also said the port would benefit if a revenue model based on volume was designed. This will make Gwadar cheaper for international shipping. This may enable the port to become a viable option for international traders.
