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Understanding Economic Benefits of Trade-Corridor Between - INTERMODAL Network

presented by Mr. Aasim Siddiqui Ex-Chairman, All Shipping Association (APSA) & Managing Director – Marine Group of Companies PAKISTAN AT A GLANCE

Population 184 Million GDP US$ 310.42 Billion Per Capita Income US$ 1684 GDP Growth Rate 3.6 % Imports US$ 40.19 Billion Exports US$ 24.46 Billion Foreign Direct Investment US$ 1.45 Billion Major Crops Cotton, Wheat, Rice, Sugarcane. Major Industries Textile, Cement, Fertilizer, Steel, Agro Food Electrical Goods, Transport & Logistics Seaports , Bin Qasim, Gwadar

Source: Economic Survey 2012‐13 Government Bodies In Intermodal Network

Karachi Port Gwadar SEA Port Trust Authority Authority

National Pakistan ROAD Highway RAIL Railway Authority

Civil AIR Aviation Authority The Global Trade Of - Imports  The Global Trade Of China - Exports The Global Trade Of China – Container Traffic The Global Trade Of China – Shipping Route 

EXISTING Europe – Western China (19132 miles) DISTANCE Middle East – Western China (12537 miles)

EUROPE WESTERN CHINA ASIA   Kashgar MIDDLE Gwadar   2625 MILES Port EAST Port PAKISTAN 4645 MILES MIDDLE EAST 2662 MILES 5250 MILES

AFRICA EUROPE 11845 MILES 2000 MILES

LONG DISTANCE & HIGH COST The Global Trade Of China – Shipping Route 

DISTANCE Europe – Western China (9535 miles) PAKISTAN - CHINA SAVED Middle East – Western China (10242 miles) ECONOMIC CORRIDOR EUROPE CENTRAL CHINA  ASIA   Kashgar 1750 MIDDLE MILES 1331 MILES EAST 

MIDDLE EAST 545 MILES

AFRICA EUROPE 7847 MILES

SHORT DISTANCE & LOW COST The Global Trade Of China – Energy Transport 

OIL IMPORTS US$ 314 BILLION

Source: International Trade Centre (2013) Pakistan – China | Economic Corridor 

US$ 20 BILLION Worth Development Projects

Highway 1 Gwadar – Kunjrab

Motorway 2 Karachi –

Expressway 3 – Mirpur

Freight Trains 4 Gwadar - Kunjrab KHUNJERAB KHYBER Pak – China Economic Corridor ATTABAD Pakistan – China | Economic Corridor  JAGLOT PARI GOR Highway BESHAM QILA 1 Gwadar – Khujerab MUZAFFARABAD HARIPUR DISPUTED Length (Approx) 2,395 Km TERRITORY Terrain Mountainous, FATEHJHANG PINDIGHEB Rolling, Flat ISA KHEL MUSA KHEL Lanes 2‐6 KUNDIAN Lane width 3.65 m DARYA KHAN Shoulder width 2 –3 m (outer) LAHORE 1 –2 m (Inner) LAYYAH Design Speed 70 – 120 QUETTAKph N‐70 TAUNSA Bridges, Tunnels and 2 ‐ 4 lanes DG KHAN Avalanche Galleries JAMPUR Estimated CostN‐40 Rs. 1,200 Billion RAJANPUR DERA BUGTI SUI PANJGUR NAG Gwadar ‐ Kunjerab Highway M‐8 HOSHAB ani N‐10 GWADAR KARACHI Pakistan – China | Economic Corridor 

NANKANA SAHIB LAHORE Motorway JARANWALA 2 Karachi – Lahore PIR MEHAL TANDLIANWALA ABDUL HAKEEM DG KHAN MAMUNKAJAN KHANEWAL MULTAN SHUJABAD JALALPUR PIRWALA UCH SHARIF Length (Appox) 1,186 Km TARINDA MUHAMMAD PANAH ZAHIR PIR Terrain Flat, Mountainous, Rolling JACOBABAD PANU AQIL Lanes 6 Lane width 3.65 m SUKKUR Shoulder 3 m (outer) 1m PIRJO GOTH width (Inner) Design Speed 120 Kph KANDIARO Tunnel To be determined JOHI DADU after feasibility study DUREJI HYDERABAD Bridges 6 Lanes over Indus, (Tentative) Ravi and Sutlej

Karachi ‐ Lahore Estimated Rs. 677 Billion KARACHI Motorway Cost Pakistan – China | Economic Corridor 

Expressway MUZAFFARABAD 3 Muzaffarabad – Mirpur DOLAI CHATTAR KALAS Length (Approx) 196 Km Terrain Mountainous, Rolling Lanes 4 Lane width 3.65 m Shoulder width 3 m (outer)ISLAMABAD AZAD PATTAN 1 m (Inner) PONA Design Speed 120 Kph FATEHJHANG Bridges, 4 Lanes Tunnels and Avalanche PINDIGHEB Galleries THAR BALATHI Muzaffarabad ‐ Mirpur Estimated Cost Rs. 75 Billion Expressway RAMKOT MANGLA / MIRPUR DINA BURHA JUNGLE Pakistan – China | Economic Corridor 

ASIAN HIGH WAY ROUTE MAP (ASIA)

CHINA

INDIA

Gwadar Karachi Pakistan – China | Economic Corridor 

Freight Trains Gwadar - Kunjrab Peshawar Kashgar 4 China

Khunjrab Pakistan Ministry of railways in cooperation with Chinese Consortium Lahore will establish Gwadar- Khunjrab Rail Link at an estimated cost of over US$ 2.3 Billion

Track Access Project (rail route for private sector)

Regional Connectivity (with China) Regional Connectivity (with Afghanistan) Regional Connectivity (with India)

Regional Connectivity (with Iran) Gwadar Karachi Pakistan Bin Qasim Pakistan – China | Economic Corridor 

Kashgar Peshawar

Torkham A Marine Group Project Kunjrab Intermodal Initiative

Chaman Pakistan Intermodal Ltd. (PIL) will be Daud Khel Kho‐i‐Taftan Lala Musa Inland Container Depot Pakistan’s First Private Lahore Train Operator, to facilitate efficient and cost effective freight movement between Wagah Pak-China Economic Corridor through its well established intermodal network Khokarapar across Pakistan.

PIL Freight Route (rail track for private sector)

Container Terminal

Regional Connectivity Regional Connectivity (with China) (with Afghanistan) Bulk Terminal Regional Connectivity Regional Connectivity (with India) (with Iran) Gwadar Port Karachi Port Port Qasim Pakistan – China | Economic Corridor  INTERMODAL SERVICE INFRASTRUCTURE

Port Freight Forwarding SERVICES

Hinterland Container TRANSPORT Terminal

Road Transport

Clients Inland Container Depot

Ship Stevedoring Called At Ports

Freight Train

Bulk Terminal

Shipping SERVICES THE FUTURE OF ECONOMIC CORRIDOR A WIN-WIN SYNERGY FOR PAKISTAN & CHINA

Pak‐China Trade will cross US$ 15 Billion by 2015

4.73 5.00 Exports US$ Billion Imports US$ Billion Pak‐China 4.28 4.50 Free Trade 4.14 4.00 Agreement Signed 3.28 3.50 3.03 3.00 2.71 2.70 2.32 2.50 2.01 2.09

2.00 1.53 1.65 1.50 1.14 1.21 0.67 1.00 0.55 0.66 0.41 0.50 0.26 0.28 0.00 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Pak‐China Trade Over Years

Source: State Bank of Pakistan – Trade Statistics THE FUTURE OF ECONOMIC CORRIDOR A WIN-WIN SYNERGY FOR PAKISTAN & CHINA

ACongenialLegalFramework The cross‐border trade between Pakistan and China would require a congenial custom policies and regulations so as to encourage the business community in the both the countries to actively take part in the growth and > development of this economic corridor.

Transport Service Opportunities Transport companies can explore more avenues of business and seek opportunities in the new markets through > joint ventures and investments in this economic corridor

Establishing Inland Container Depots (ICDs) The Pak‐China economic corridor will bring huge volume of cargo to and from China & Pakistan and will require freight stations at various locations to bring port services closer to shippers in the hinterland through specialized > rail‐road services and decongesting the cargo traffic.

Efficient Freight Villages Ideally the facility will be located close to a major metropolitan areas both in China and Pakistan which will also serve as a market or supplier of much of the goods that pass through. A freight village can raise the likelihood that smaller firms utilize intermodal transport and opportunity for shared services is potentially very large and > can range from those associated strictly with the movement of goods to those associated with serving the nearby residential population. THE FUTURE OF ECONOMIC CORRIDOR A WIN-WIN SYNERGY FOR PAKISTAN & CHINA Pak-China Economic Competitiveness in Export Markets Corridor As soon as Pak‐China Economic corridor become operational; it will substantially effect the cost of market access for China, giving its products a > more competitive edge in export markets. Similarly, Pakistan will have a convenient access to Chinese markets for increasing trade between both the countries. Infrastructure Development

Business Strong Buyers/Suppliers Base Opportunities China is the second largest trading partner of Pakistan in Asia; which will be strengthen through this corridor as both the countries may find strong Efficient > buyers/suppliers in various sectors of mutual interest Transport Routes

Expanding Regional Trade Energy Projects Pak‐China Economic Corridor will also initiate 19 energy projects of worth Job US$ to generate over 22,000 MW electricity both in public and private Creation > sector which will support the industrialization in the Special Economic Zones (SEZs) being developed across this corridor Raising Per Capita Income

Economic Environment Friendly Countries Prosperity Reducing the transport distances will substantially conserve fuel resources and Of Nations > reduce carbon emission for creating a clean‐air environment in the region THE NEXT STEP LETS MEET & DISCUSS OPPORTUNITIES THANK YOU