Gwadar to extensively reduce distance and transport cost: study
ISLAMABAD, Feb.16(Gwadar Pro) - According to a study published in the Journal of Advanced Transportation, Gwadar will be an alternative, safe, short, and inexpensive route to trade with Europe and Middle East countries.
Through Gwadar, China will not only save travel time but can also save billions of dollars in transport costs.
The existing route from Kashgar (Western China) to selected destination ports in Europe and the Middle East, Pic Credits www.hindawi.com
The research showed that transport cost for the 40-foot container between Kashgar and destination ports in the Middle East is decreased by about USD 1450 and for destination ports in Europe is decreased by USD 1350.
Additionally, travel time is decreased by 21 to 24 days for destination ports in the Middle East and 21 days for destination ports in Europe. The distance from Kashgar to destination ports in the Middle East and Europe is decreased by 11,000 to 13,000 km.
The most important benefit for China under China Pakistan Economic Corridor (CPEC) would be the decrease of China's trade way from the existing sea route of 12,000 kilometers to 2,000 kilometers.
The new CPEC route from Kashgar (Western China) to selected destination ports from Europe and the Middle East. Pic Credits www.hindawi.com
The oil consignments from Gulf nations would be transported to China via Pakistan, while non-oil imports could be transported to the world by Gwadar as a transport route.
Researchers believe that due to the construction and improvement of the land route, physical distance and travel time between Pakistan and China will fall significantly and the GDP of both economies will be increased sharply.
The advantages for China in trade will happen not only in the decrease in travel time and distance but also through the linkage with the larger market. In addition, the development in worldwide trade flows and a considerable shift are expected in the trade between various regions of Pakistan and China.
The research report represents the fact that China will save about USD 71 billion from the new CPEC route on its imports and exports in terms of shipping costs from selected destination countries from Europe and the Middle East.
On the other hand, the local industry and services sector in Pakistan along the route will also benefit. Trade activities along the route will create thousands of job opportunities.
Moreover, the Central Asian states are also looking to connect with the world through Gwadar Port. They showed interest in Gwadar Port and allied facilities.
CPEC, therefore, is considered a game-changer for the entire region. It will not only benefit Pakistan and China but also the Middle East, Europe, and noncoastal Central Asian countries.
Land-locked Central Asian countries like Tajikistan, Turkmenistan, Kazakhstan, Kyrgyzstan, and Afghanistan would get the advantage of the shortest seaway from the Gwadar port.