CPEC:

Geo-strategic and economic significance

February 25, 2018 By Vahid Pourtajrishi

Authors: Vahid Pourtajrishi & Tayyebeh Vakilotojar

The China Pakistan Economic Corridor (CPEC) is of prime importance for Pakistan as it
can act as the game changer boosting the economic and geopolitical role of Pakistan in
the questions of the region.

Roots of China-Pakistan linkages date back to many centuries into the fabled Silk Route
connecting the civilizations of India, China, Persia and Europe. Though separated by
the formidable mountain ranges of Himalayas and Karakoram, the two regions
remained connected through numerous mountainous tracks and routes which not only
facilitated trade and travel but also the flow of ideas, culture and religion. Construction
of the Karakoram Highway which was completed in 1978 provided all weather links
between Pakistan and China, hence, further promoting trade and culture.

The Frontier Works Organization (FWO) is undertaking massive infrastructure

development program all over Pakistan and particularly the China Pakistan Economic
Corridor (CPEC).It is constructing a part of the CPEC’s Western Route in Baluchistan
and a portion of the Eastern Route besides maintenance of the Karakoram Highway
(KKH). Road projects in Baluchistan will link Gwadar Port with Quetta, Chaman and
Rattodero at the Indus Highway and bring forth a change in socio-economic dimensions
of Baluchistan and Pakistan in general. With the completion of 870 km portion of the
road infrastructure developed by FWO, not only people of interior Baluchistan will be
benefitted but Gwadar Deep Sea Port would also be linked with Chaman, reducing the
distance by nearly 400 km. construction of Lahore-Islamabad and Karachi-Hyderabad
Motorways on Built-Operate-Transfer (BOT) basis will facilitate the pace of development
to take on the challenges of the CPEC.

Completion of Gwadar Port in 2007

The distance between Gwadar and Kashgar, Xinjiang province (China) is nearly 2,800
KM while the route in Pakistan comes about 2,442 km, comprising highways, energy
pipelines and industrial estates stretching from Gwadar to Kashgar through Khunjerab
to benefit the economies of the two countries .

According to the Asian Development Bank (ADB), the project “will provide connection
between economic nodes or hubs, centered on urban landscapes, in which large
amount of CPEC economic resources. They link the supply and demand sides of
markets”.

Communication infrastructure of the CPEC will connect the vast but landlocked Western
Chinese region with the Arabian seaport of Gwadar thereby giving it a direct and shorter
access to the trade markets of the Middle East and beyond. FWO, the leading
infrastructure development organization of Pakistan, created specifically for the
Pakistan-China connectivity through construction of Karakoram Highway five decades
back, has a pivotal role to play in implementation of this gigantic and crucial venture.

Two great routes, including the Grand Trunk Road (GT Road) and the Silk Route have
served the Indian subcontinent. Link with China through Silk Route was not a single
road but a vast network of interconnecting routes that linked the East and the West for
nearly two millennia. Karakoram Highway, in 1947, the northern areas were accessible
via two routes: the Srinagar Astore-Gilgit mule track and the Kaghan Valley Track over
the Babusar Pass and Chilas. After 1948 Kashmir War, the Srinagar Route was denied
to Pakistan and the entire northern areas became dependent on the Kaghan Valley
Route.
Gwadar is considered to be the gateway to South West and Central Asia. Located at the
mouth of the Persian Gulf, 624 nautical km to the east of the Strait of Hormuz, Gwadar
port has immense strategic significance. The CPEC is a classic manifestation of
convergence of geostrategic and geo-economic interests of the two countries bonded in
time tested socio-economic and diplomatic relations with absolute trust in each other.

Gwadar Port will not only serve as a shortest route for China’s oil supply but it will also
reduce the cost of supplying oil by billions of dollars. Fully functional Gwadar Port
connected with China and Central Asia can play a role in the economic revival of
Pakistan being located at the crossroads of huge supplying and communicating
markets. FWO owes its birth in 1966 to Karakoram Highway. By managing a large work
force stretched over inhospitable and harsh mountain ranges for over 887 km, FWO
succeeded in carving out the “Eighth Wonder” of the World in 1978.13Today, FWO is a
vibrant construction entity of 45,000 professionals equipped with over 5,000 pieces of
state of the art construction machinery, stretched all across Pakistan besides venturing
overseas.
Maintenance of KKH and Construction of Mansehra Naran-Chilas Road
In 1958, a modest project was initiated to provide a road link between Swat and Gilgit
which grew up into a mega highway project when, in 1966.FWO is developing Jalkhad-
Babusar-Chilas Road, which has almost been completed. This road is a continuation of
the Mansehra-Naran-Jalkhad Road, which is complete and takes in a large volume of
traffic during summers.

By end of 2016 would effectively link Gwadar Deep Sea Port with Afghanistan and
China. FWO is according top priority to these routes keeping in view the supreme
national interest and accordingly almost 60% of its resources have been employed for
construction of these road projects. The M-8 Motorway reflects the vision of a
progressive Baluchistan.

It is the first highway of the province, which shall be converted into a Motorway
connecting Gwadar with the Indus Highway. Eventual alignment of this road will
traverse along Gwadar, Turbat, Hoshab, Awaran, Khuzdar and Rattodero. However, the
contract agreements were terminated in October 2010 due to adverse security situation
as all the contractors expressed their inability CPEC 146 to work.

In 2013, fresh bids were called but only FWO submitted its proposal and the work were
awarded to FWO. FWO has undertaken construction of Gwadar–TurbatHoshab and
Khuzdar-Shahdadkot segments. The road is sponsored by NHA from PSDP Funding.
Construction of Khuzdar-Shahdadkot link is also underway. The Highway is also known
as the Gwadar-Quetta link.

According to the scope of work, length of highway is 448 km, carriageway width is 7.3
meters with shoulders of 2.5 meters. Moreover, 15 bridges are to be constructed. The
construction work has been divided into four sections: the Hoshab-Panjgur (138 km),
Panjgur-Nag (130 km), NagBasima (91 km) and Basima-Surab Section (89 km)

FWO is currently undertaking repair and modernization of Lahore-Islamabad Motorway

(M-2) whereas the 4 lane Karachi Hyderabad Super Highway is being upgraded into a 6
lane motorway in its pursuits along the Eastern Route.

Lahore-Islamabad Motorway
Under the Concession Agreement, M-2 has been handed over to FWO in 2014 for
concession period of 20 years. Project was inaugurated on 15 December 2014 and
work commenced during January 2015 after largest financial close in the history of
transportation and communication sector in Pakistan.

Conversion of the existing 4 lane Karachi–Hyderabad Superhighway into a 6 lane

Motorway (M-9) has been entrusted to the FWO in 2015 for a concession period of 25
years. FWO is also in the process of bidding for different sections of the Karachi Lahore
Motorway.
FWO is working in close harmony with Pakistan Railways for development of ‘Pak-
China Dedicated Freight Corridor.’ The Corridor will extend from Karachi and Gwadar to
Kashghar and eventually link the regional rail networks in the neighborhood. Oil City
and White Oil Pipeline: To meet the strategic needs of Pakistan, besides the huge
contemplated and projected requirements of the CPEC, an Oil Village with a capacity of
50,000 MT on Build-Own-Operate (BOO) basis and connecting it with White Oil Pipeline
is being planned. Another mega initiative is Gwadar-Kashgar Cross Country Oil Pipeline
with 400,000 MT storage facilities.

Economic Development Plan along Major Routes: Under this plan, a number of
smart cities, industrial zones, container terminals, grain and fuel storage facilities,
warehouses, dry ports and thermal power plants are planned.
CPEC: Infrastructure Development 155 along Lahore-Islamabad Motorway, Karachi-
Hyderabad Motorway and Dedicated Freight Corridor.
Energy and Water Sector Projects: In order to develop energy and water sector in
Pakistan, FWO has planned to undertake and develop mega dam projects as well as
medium size Hydro Power Projects. The last but not the least is the capacity issue, in
the implementation phase and addressed by raising and training a huge technical and
skilled work force needed. National University of Technology and Skills Development
(NUTECH) has been conceptualized. Proposed university to introduce the concept of
basic to higher education CPEC 156 in the field of technology for the first time in
Pakistan, though already adopted in the advanced countries.
The CPEC is a prized opportunity for Pakistan to realize its strategic and economic
potential and is regarded as a “Game Changer” for Pakistan and the region. The
benefits of the project will materialize gradually and the require determination from
Pakistan and China to achieve their cherished goals in the best possible manner. FWO,
in its capacity, has been striving to play its essential part rather leading the
implementation of the CPEC.

First published in our partner Mehr News Agency

Vahid Pourtajrishi

http://moderndiplomacy.eu/2018/02/25/cpec-geo-strategic-economic-significance/