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China-Pakistan Economic Corridor (Cpec) Under ‘One Belt-One Road’ Initiative

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China-Pakistan Economic Corridor (Cpec) Under ‘One Belt-One Road’ Initiative THE DEVELOPMENT ON CHINA-PAKISTAN ECONOMIC CORRIDOR (CPEC) UNDER ‘ONE BELT-ONE ROAD’ INITIATIVE presented by Aasim Siddiqui, Chairman All Pakistan Shipping Association (APSA) Managing Director – Marine Group of Companies TRADE & ROUTES WHAT MATTERS THE WHICH REGIONS PLAYER WITH MOST FOR HAVE HIGH LEVEL OF HIGHEST VOLUMES OF TRADE ROUTES TRADE IMPORT/EXPORT CARGO 1 2 3 CARGO ASIA CHINA VOLUME EUROPE CHINESE STRATEGY Developing Efficient Trade Corridors to Reach New Markets TRANSPORT LOCAL MERGERS INFRASTRUCTURE TO SERVICE DEVELOPMENT LARGE VOLUMES China has long term global COSCO & China Shipping Group have infrastructure investment plan of declared the establishment of the developing trade corridors to China COSCO Shipping Group, which connect with Europe and other is now the 4th biggest container emerging markets through efficient shipping company in the world and and cost effective routes can service large cargo volumes ONE BELT-ONE ROAD (OBOR) SILK ROAD ECONOMIC BELT MARITIME SILK ROAD Intermodal Routes for Regional Trade Prosperity China Economic Corridors Silk Road Economic Corridors Maritime Silk Road A GAME CHANGER ONE BELT-ONE ROAD (OBOR) INITIATIVE Accelerating the Trade Growth The Silk Road Economic Belt concept was introduced by In October 2013, President Xi proposed building a close- Chinese President Xi Jinping during his visit to knit China-ASEAN community and offered guidance on Kazakhstan in September 2013 and suggested that constructing a 21st Century Maritime Silk Road to China and Central Asia may cooperate to build a Silk promote maritime cooperation, to finance infrastructure Road Economic Belt. construction and promote regional interconnectivity and economic integration. SILK ROAD ECONOMIC BELT MARITIME SILK ROAD The 21st-Century Maritime Silk Road is designed to go The Silk Road Economic Belt focuses on bringing from China's coast to Europe through the South China together China, Central Asia, Russia and Europe (the Sea and to the Indian Ocean in one route, and from Baltic) linking China with the Persian Gulf and the China's coast through the South China Sea to the Mediterranean Sea through Central Asia South Pacific US$900BILLION US$2.5 TRILLION Chinese Investment for ‘OBOR’ Initiative Chinese Trade Growth In Next Decade 35 To Celebrate Along 70% Global Population 55% World GNP 75% Known YEARS 100th Anniversary of living along the belt present in the route Energy Resources China by 2049 GLOBAL CONTAINER TRAFFIC (TEUs) Country TEUs China 181,635,245 European Union 105,895,724 United States 46,488,523 Singapore 34,832,376 Korea 23,796,846 Malaysia 22,718,784 Hong Kong SAR, China 22,300,000 United Arab Emirates 20,900,567 Japan 20,744,461 Source: World Bank - Container port traffic 2014 (TEU: 20 foot equivalent units) CHINA-PAKISTAN ECONOMIC CORRIDOR DISTANCE & COST ANALYSIS ACROSS VARIOUS TRADE ROUTES CHINA-PAKISTAN ECONOMIC CORRIDOR Intermodal Routes for Regional Trade Prosperity Traditional TRADE ROUTE Europe - China TRADE ROUTE (Traditional) CHINA-PAKISTAN ECONOMIC CORRIDOR Europe - China Intermodal Routes for Regional Trade Prosperity Route: Eastern Europe - Western China EUROPE CENTRAL ASIA WESTERN CHINA Kashgar 19132 MILES (US$ 8026) MIDDLE EAST Shanghai Port 16507 MILES LONG DISTANCE & HIGH COST (US$ 3301) 19132 MILES US$ 8026 AFRICA EUROPE 11845 MILES 13845 MILES (US$ 2369) (US$ 2769) US$1.80 Per Mile US$0.20 Per Mile Carbon Emission: 0.14645 kg CO2e per Tonne-Mile Carbon Emission: 0.0602 kg CO2e per Tonne-Mile CHINA-PAKISTAN ECONOMIC CORRIDOR Intermodal Routes for Regional Trade Prosperity NEW TRADE ROUTE Europe - China TRADE ROUTE (NEW) CHINA-PAKISTAN ECONOMIC CORRIDOR Europe - China Intermodal Routes for Regional Trade Prosperity Kazakistan Route: Eastern Europe - Western China EUROPE CENTRAL ASIA WESTERN CHINA Kashgar 9597 MILES (US$ 4719) MIDDLE China-Pakistan Economic Corridor EAST Intermodal Transport Network Karachi Port 7847 MILES (US$ 1570) AFRICA SHORT DISTANCE & LOW COST 9597 MILES US$ 4719 41% LOWER 9535 Miles Saved COST US$1.80 Per Mile US$0.20 Per Mile Carbon Emission: 0.14645 kg CO2e per Tonne-Mile Carbon Emission: 0.0602 kg CO2e per Tonne-Mile CHINA-PAKISTAN ECONOMIC CORRIDOR Intermodal Routes for Regional Trade Prosperity Traditional TRADE ROUTE Middle East- China TRADE ROUTE (Traditional) CHINA-PAKISTAN ECONOMIC CORRIDOR Middle East- China Intermodal Routes for Regional Trade Prosperity Route: Middle East - Western China EUROPE CENTRAL ASIA WESTERN CHINA Kashgar 9146 MILES (US$ 6029) MIDDLE EAST Shanghai Port 6521 MILES (US$ 1304) LONG DISTANCE & HIGH COST 9146 MILES US$ 6029 AFRICA EUROPE US$1.80 Per Mile US$0.20 Per Mile Carbon Emission: 0.14645 kg CO2e per Tonne-Mile Carbon Emission: 0.0602 kg CO2e per Tonne-Mile CHINA-PAKISTAN ECONOMIC CORRIDOR Intermodal Routes for Regional Trade Prosperity NEW TRADE ROUTE Middle East- China TRADE ROUTE (NEW) CHINA-PAKISTAN ECONOMIC CORRIDOR Middle East- China Intermodal Routes for Regional Trade Prosperity Kazakistan Route: Middle East - Western China EUROPE CENTRAL ASIA WESTERN CHINA Kashgar 2546 MILES (US$ 3309) MIDDLE China-Pakistan Economic Corridor EAST Intermodal Transport Network Karachi Port 796 MILES (US$ 160) SHORT DISTANCE & LOW COST AFRICA 2546 MILES US$ 3309 45% LOWER 6600 Miles Saved COST US$1.80 Per Mile US$0.20 Per Mile Carbon Emission: 0.14645 kg CO2e per Tonne-Mile Carbon Emission: 0.0602 kg CO2e per Tonne-Mile CHINA-PAKISTAN ECONOMIC CORRIDOR Intermodal Routes for Regional Trade Prosperity Traditional TRADE ROUTE Africa - China TRADE ROUTE (Traditional) CHINA-PAKISTAN ECONOMIC CORRIDOR Africa - China Intermodal Routes for Regional Trade Prosperity Route: Eastern Africa - Western China EUROPE CENTRAL ASIA WESTERN CHINA Kashgar 9785 MILES (US$ 6157) MIDDLE EAST Shanghai Port 7160 MILES LONG DISTANCE & HIGH COST (US$ 1432) 9785 MILES US$ 6157 AFRICA EUROPE US$1.80 Per Mile US$0.20 Per Mile Carbon Emission: 0.14645 kg CO2e per Tonne-Mile Carbon Emission: 0.0602 kg CO2e per Tonne-Mile CHINA-PAKISTAN ECONOMIC CORRIDOR Intermodal Routes for Regional Trade Prosperity NEW TRADE ROUTE Africa - China TRADE ROUTE (NEW) CHINA-PAKISTAN ECONOMIC CORRIDOR Africa - China Intermodal Routes for Regional Trade Prosperity Kazakistan Route: Eastern Africa - Western China EUROPE CENTRAL ASIA WESTERN CHINA Kashgar 4464 MILES (US$ 3692) MIDDLE China-Pakistan Economic Corridor EAST Intermodal Transport Network Karachi Port 2714 MILES (US$ 542) SHORT DISTANCE & LOW COST AFRICA 4464 MILES US$ 3692 40% LOWER 5321 Miles Saved COST US$1.80 Per Mile US$0.20 Per Mile Carbon Emission: 0.14645 kg CO2e per Tonne-Mile Carbon Emission: 0.0602 kg CO2e per Tonne-Mile CHINA-PAKISTAN ECONOMIC CORRIDOR Intermodal Routes for Regional Trade Prosperity NEW TRADE ROUTE Central Asia-Arabian Sea TRADE ROUTE CHINA-PAKISTAN ECONOMIC CORRIDOR Central Asia Intermodal Routes for Regional Trade Prosperity - Arabian Sea Kazakistan Route: Central Asia – Arabian Sea EUROPE WESTERN CHINA Kashgar CENTRAL ASIA (Landlocked) MIDDLE China-Pakistan Economic Corridor EAST Intermodal Transport Network Central Asia to Arabian Sea 1553 MILES (US$ 2796) AFRICA ASIA PACIFIC SHORT DISTANCE TO ARABIAN SEA 1553 MILES US$ 2796 US$1.80 Per Mile US$0.20 Per Mile CPEC TRADE ROUTES (SUMMARY) CHINA-PAKISTAN ECONOMIC CORRIDOR Intermodal Routes for Regional Trade Prosperity Distance/Route Cost Savings (Miles) (US$ - Per Miles) China Key Markets Traditional CPEC Distance Traditional CPEC Cost Route Route Saved Route Route Saving Europe – China 19132 9597 9535 8026 4719 3307 Middle East - China 9146 2546 6600 6029 3309 2720 Africa - China 9785 4464 5321 6157 3692 2465 CHINA-PAKISTAN ECONOMIC CORRIDOR INVESTMENT | INFRASTRUCTURE DEVELOPMENTS | PROJECTS CHINA-PAKISTAN ECONOMIC CORRIDOR INVESTMENTS Intermodal Routes for Regional Trade Prosperity NORTHERN US$ 54 BILLION SECTION CHINESE INVESTMENT ACROSS CPEC Energy 36 CENTRAL SECTION Rail 10.79 Road 6.10 Gwadar Port 0.79 Fibre Optics 0.04 US$ Billion SOUTHERN SECTION Gwadar – Kashgar 1750 miles Long Term CPEC Alignment 1517 miles NORTHERN ROUTE Karachi – Peshawar Motorway 956 miles EASTERN ROUTE Karachi – Lahore Motorway WESTERN ROUTE 720 miles CENTRAL ROUTE Gwadar – D.I. Khan via Quetta 578 miles SPECIAL ECONOMIC ZONES (SEZs) SNO. SPECIAL ECONOMIC ZONES (PROPOSED) 1 Rashakai Economic Zone on M-1 2 Special Economic Zone Dhabeji 3 Bostan Industrial Zone 4 Punjab - China Economic Zone, M-2 District Sheikhupura 5 ICT Model Industrial Zone, Islamabad 6 Development of Industrial Park on Pakistan Steel Mills Land at Port Qasim near Karachi 7 Bhimber Industrial Zone 8 Mohmand Marble City 9 Moqpondass SEZ Gilgit-Baltistan CPEC TRADE BENEFITS CHINA-PAKISTAN ECONOMIC CORRIDOR Intermodal Routes for Regional Trade Prosperity The accession of China & Pakistan to United CPEC will create an efficient & cost Nations TIR Convention will open effective intermodal trade route to move international boundaries for CPEC corridor its cargo from Western China via Pakistan to move cargo from China via Pakistan to to Middle East, Africa and Europe international markets with custom clearance at final destination only Pakistan offers a growing consumer market Pakistan-China enjoys a Free Trade of over 200 Million consumers for Chinese Agreement and Chinese products Products & under CPEC Tax Free Industrial imported in Pakistan have NO CUSTOM Zones Chinese companies can setup their DUTY on it. assembly and manufacturing facilities in Pakistan NORTHERN CORRIDOR (850 km) Cities: Kashgar to Islamabad(Burhan) Route: Karakoram Highway (KKH) N35 | Hazara
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