Is it worth it for China to lease the port of Pak Tie Gwadar for 14 years, and the total investment for 43 years?
After spending a lot of money to buy ports, Pakistan was once in a development dilemma. The United States offered to help, but the entire population of Pakistan refused.
Singapore wanted to make a profit, but it lost money. Pakistan leased the business to China. This move not only opened the door to the Western market for China, but also enabled China to occupy a dominant position in regional competition, and even blocked the route of US military operations, posing a threat to US military development.
When we think of Gwadar Port, we usually think of Pakistan, but Gwadar Port was originally not owned in Pakistan, but in Oman across the Gulf of Oman. In fact, Oman is a country with a long history on the Arabian Peninsula, and despite its unusual low profile on the international stage, the Omani Empire has historically been a powerful country that has been feared by its neighbors.
In 1792, a battle for the throne broke out in Oman, and after the defeat of the then prince Sultan, he had to flee to Pakistan. The region was ruled by the kingdom of Qarathan, and out of care for the fallen prince, the kingdom of Karathhan decided to generously grant the land around Gwadar to Sultan.
Since then, the port of Gwadar has ceased to be under the rule of the Khanate of Karath and has become part of Oman. By 1958, Oman's economy was at a low ebb, and it was in dire need of money to repair its troubles.
As a result, Pakistan reached an agreement with Oman to buy back the Gwadar region from Oman for £3 million.
The reason why Pakistan is willing to pay ** for the Gwadar port is because of the extremely high value of this strategic port in the southwest. Gwadar Port is a rare deep-water port that can accommodate large cargo ships, which is extremely beneficial for the transportation of goods in Pakistan.
In addition to its unique geographical location, it also contains 50% of Pakistan's mineral resources, including coal, iron, copper and other elements that are extremely important for industrial development.
In addition, the port of Gwadar is strategically located with access to the Central Asian Silk Road in the north, the Arabian Sea in the south, and is also very close to the famous Strait of Hormuz.
Therefore, whoever can control the port of Gwadar will in fact also control the important transportation arteries of the Persian Gulf.
Despite its abundance of natural resources, the living conditions of the local population are worrying, as ethnic and religious strife have created a volatile social environment.
Coupled with Pakistan's own lagging economic development, it may be difficult to build a large-scale modern port without decades of efforts.
Pakistan has launched a plan to attract investment, and as soon as the news came out, the United States was naturally one of the first countries to respond. However, the United States has always been shrewd, and they will not do business at a loss.
The United States wants to gain control of the port while getting Pakistan's permission to set up patrols in the port and have patrol rights and autonomous defense rights.
Pakistan immediately hesitated when it saw this proposal, because these demands of the United States almost regarded the port as its own territory, and if the port was really built by the United States, the consequences would be unimaginable.
In the face of strong opposition from the domestic population, the cooperation between the two sides eventually broke down. Although cooperation with the United States ended, Pakistan thought of China.
China's economy is strong, and its infrastructure is one of the best in the world. This will not only help Pakistan build the Gwadar port, but also fully exploit its potential. In 1999, Pakistan's Pervez Musharraf sincerely pleaded with China to help complete the construction of the Gwadar deep-water port.
Musharraf** has demonstrated his firm support for the construction of the China-Pakistan Economic Corridor (CPEC) with concrete actions. After many negotiations and communication between the two sides, the Gwadar port project has finally made a breakthrough.
Subsequently, the representatives of the two countries signed the agreement, marking the formal conclusion of the financing of the first phase of the Gwadar Port Project, which comprehensively promoted the construction process of the port.
In 2007, after 6 years of construction, the first phase of Gwadar Port was successfully completed. Pakistan held a public auction for the right to operate the port, which attracted bids from several countries.
As a rule, no one in such an auction should be able to compete with China's competitiveness. However, Singapore, the unjust leader, successfully purchased the right to operate the Gwadar port for 40 years at a rate ten times more than normal.
The benefits of the Gwadar port since it was taken over by Singapore have not lived up to expectations, with data showing that from 2007 to 2012, only a handful of freighters docked at the port, and the port's occupancy rate is so low that it is almost abandoned.
In 2013, Pakistan** decided to transfer the operation of the Gwadar port to China, citing what they believed was Singapore's poor performance in this regard. According to the agreement signed between China and Pakistan, China will be required to bear 80% of the cost of the construction of the port and will be granted the right to operate it for 40 years after completion.
According to reports, China's investment in Pakistan's Gwadar port totals 33.7 billion yuan, but many are pessimistic about the project's return cycle. Because the second phase of the project is not expected to be completed until 2029, and the lease term is actually less than 30 years left.
One might ask, what if I lose money?But will China really lose money?In fact, the Gwadar port jointly developed by China and Pakistan is of far-reaching significance for the development of both countries.
Geographically, the Gwadar port is close to western China, opening up a new sea route for western China. Therefore, despite the huge amount of investment, China's investment in Gwadar Port will help boost the economic development of both countries.
Taking Xinjiang as an example, the straight-line distance from Gwadar port is only 2,034 kilometers, which is only half the distance from Xinjiang to Shanghai, which is of great significance for improving the transportation problem in China's western region.
Most people may not know that 80% of our country's oil imports are done by sea transportation. The Gwadar port provides a relatively safe new route for China's oil transportation, which helps to avoid potential risks in the Strait of Malacca region and enhance China's energy security.
The participation of Chinese companies has had a positive impact on the construction of the Gwadar port in Pakistan. Not only do they provide a large number of employment opportunities, but they also provide a solid foundation for infrastructure development in the western region of Pakistan, further boosting the development of local tourism.
At the same time, the Gwadar port is a key pillar of China's Belt and Road Initiative and a key project of the China-Pakistan Economic Corridor. China and Pakistan will continue to deepen exchanges and cooperation in various fields, promote the construction of the China-Pakistan Economic Corridor, and jointly achieve prosperity.
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