Gwadar Port from the Perspective of Xinjiang Province of China Jialing

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Gwadar Port from the Perspective of Xinjiang Province of China Jialing Erasmus University Rotterdam MSc in Maritime Economics and Logistics 2010/2011 Gwadar Port from the Perspective of Xinjiang Province of China By Jialing SUN i Acknowledgement After one year of laborious study, I eventually finished my master courses and master thesis. Even though it is a big challenge for me, actually it is really rewarding. Not only did I obtain professional knowledge and skills, but also make friends from various countries. Apart from my own diligence, my master study could not be accomplished without numerous people’s assistance. Above all, I would like to express my greatest gratitude to my supervisor Dr. Gujar who provided me with utmost and elaborate guidance and supervision throughout the whole process of my thesis writing, from choosing topics to writing. I really appreciate his critical and valuable suggestions. Without his patience and encouragement, my thesis could not be completed in such a professional and academic form. In addition, I would like to express my heartfelt thanks to all the teachers from whom I acquired knowledge. Their conscientious attitude towards scholarly research and solid professional knowledge erect good examples for me, and also let me make a significant progress. Meanwhile, I would like to express my sincere thanks to all my assignment partners for their active collaboration and conscientious work. Without them, I could not obtain quite satisfactory scores. Besides, I would like to thank our coordinators, Mrs. Renee and Ms. Kim, for their generous help and care when I met troubles. At last, I would like to express my deepest gratitude and appreciation to my mother for her consistent contribution and support. Without her understanding, consideration and encouragement, I could not realize my dream of studying abroad and could not overcome the difficulties during my one-year study. ii Abstract Since the reform and opening-up, apparent and serious economic disparity has existed between the eastern coastal region and the inland area, especially western China. Such unbalance adversely influences the sustainable development of China’s economy. In order to resolve this chronic problem, Chinese government proposed related policy as well as developing logistics system and transportation infrastructure which are bottlenecks for economic development of western China. Xinjiang, as an important gateway in the west for inland area of China, plays an indispensible role in national logistics development. For the purpose of optimizing distribution network in the west part, China has made immense investment in the Gwadar Port construction of Pakistan. Thus, the objective of this thesis is to analyze the importance of Gwadar port development from the perspective of Xinjiang Province of China. Based on literature review, this thesis presents the status of economic development, transport system development and dry ports development of China, especially the western part. By adopting SWOT analysis method, this thesis specifically analyzes the various internal and external factors that affect Gwadar Port development from the perspective of China. Actually, the development of Gwadar Port will bring about a wide array of benefits not only for Pakistan, but also for China, especially logistics optimization of inland China. In addition, the establishment of Gwadar port in Pakistan significantly stimulates logistics improvement of inland China, especially that of Xinjiang Province which is connected with Pakistan by Karakorum Highway. And their benefits are mutual, namely Xinjiang also plays an important role in Gwadar Port development. Notwithstanding that, dry port which improves efficiency of transport as well as enhancing connection between hinterland and ports still needs to be developed in Xinjiang for further optimizing distribution network of China. This thesis provides an overview of logistics status in western China and makes a contribution to the scare research on the logistics development situation in the west of China. However, due to limited number of related academic research and relevant data, this thesis mainly focuses on qualitative analysis instead of quantitative analysis. Key words: Logistics system, Dry port, Gwadar Port, Xinjiang iii Table of Contents Acknowledgement .................................................................................................... ii Abstract .................................................................................................................... iii Table of Contents .................................................................................................... iv List of Tables .......................................................................................................... viii List of Figures .......................................................................................................... ix List of Abbreviations ................................................................................................. x Chapter 1 Introduction ........................................................................................... 1 1.1 Background ................................................................................................. 1 1.2 Transport System in China .......................................................................... 1 1.3 Gwadar Port in Pakistan .............................................................................. 4 1.3.1 Development Process ....................................................................... 4 1.3.2 Master Plan of Gwadar Port .............................................................. 5 1.4 China’s Pearl in Pakistan’s Waters .............................................................. 5 1.4.1 China’s Overland Transportation Links with Gwadar Port .................. 6 1.4.2 Dry Ports in Western China ............................................................... 7 1.5 Research Question ...................................................................................... 8 Chapter 2 Economic Growth of Western Part of China ..................................... 11 2.1 General Economic Development of China ................................................. 11 2.1.1 The Eastern Part of China ............................................................... 11 2.1.2 The Central and Northern Part ........................................................ 12 2.1.3 The Western Part ............................................................................ 12 2.2 Economy of Western China ....................................................................... 12 2.3 Factors Influencing Economic Development of Western China .................. 13 2.3.1 Natural Environment Factors ........................................................... 14 iv 2.3.2 Geographic Location ....................................................................... 14 2.3.3 Unreasonable Economic Structure .................................................. 15 2.3.4 Insufficient Infrastructure ................................................................. 15 2.3.5 Other Reasons ................................................................................ 16 2.4 Relationship between Infrastructure and Logistics Development and Economic Growth ............................................................................................ 16 2.5 Conclusion ................................................................................................ 17 Chapter 3 Logistics Development in China ........................................................ 19 3.1 General Situation ....................................................................................... 19 3.1.1 Current Situation of Chinese Logistics Development ....................... 19 3.1.2 Transportation Infrastructure in China .............................................. 20 3.1.3 Existing Barriers that Restrict Logistics Development ...................... 23 3.1.4 Future and Opportunities ................................................................. 26 3.2 Logistics Development in Western China .................................................. 27 3.2.1 Potential Advantages ....................................................................... 27 3.2.2 Disadvantages ................................................................................ 28 3.3 Conclusion ................................................................................................ 29 Chapter 4 Development of Dry Port in China ..................................................... 30 4.1 Reasons for the Development of Dry Ports................................................ 30 4.1.1 Requirement for International Container Logistic Development ....... 31 4.1.2 Requirement for the Regionalization of Seaports ............................ 32 4.1.3 Requirement for Increasing Vessel Sizes ........................................ 32 4.2 The Concept of Dry Port ............................................................................ 33 4.2.1 As an Intermodal Node .................................................................... 34 4.2.2 From an Environmental Perspective ................................................ 35 4.3 The Function and Advantages of Dry Port ................................................. 36 4.3.1 The Function of Dry Ports ................................................................ 36 4.3.2 The Advantages of Dry Ports ........................................................... 37 v 4.4 The Categories of
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