THE DEVELOPMENT ON - ECONOMIC CORRIDOR (CPEC) UNDER ‘BELT & ROAD INITIATIVE’

CONTAINER CPEC OBOR PAKISTAN ROUTE TRANSPORT INFRASTRUCTURE INTERMODAL CONNECTIVITY MARITIME ONE BELT ONE ROAD CHINA PAKISTAN EC ONOMIC CORRIDOR

presented by Aasim Siddiqui, Former Chairman All Pakistan Shipping Association (APSA) Managing Director – Marine Group of Companies SILK ROAD ECONOMIC BELT ONE BELT-ONE ROAD (OBOR) Intermodal Routes for Regional Trade Prosperity

 China Economic Corridors

Silk Road Economic Corridors Maritime Silk Road BELT & ROAD INITIATIVE A GAME CHANGER

Accelerating the Trade Growth

The Silk Road Economic Belt concept was introduced by Chinese President Xi In October 2013, President Xi proposed building a close-knit China-ASEAN Jinping during his visit to Kazakhstan in September 2013 and suggested that community and offered guidance on constructing a 21st Century Maritime Silk Road China and may cooperate to build a Silk Road Economic Belt. to promote maritime cooperation, to finance infrastructure 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 from China's coast to Europe The Silk Road Economic Belt focuses on bringing together China, Central through the South China Sea and to the in one route, and from China's Asia, Russia and Europe (the Baltic) linking China with the and coast through the South China Sea to the the Mediterranean Sea through Central Asia South Pacific

US$1TRILLION US$2.5 TRILLION Chinese Investment for ‘Belt & Road’ Initiative Chinese Trade Growth In Next Decade

To Celebrate Along Global Population World GNP Known 35 100th Anniversary of China 70% living along the belt 55% present in the route 75% Energy Resources by 2049 YEARS 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 is connect with Europe and other now the 4th biggest container shipping emerging markets through efficient company in the world and can service and cost effective routes large cargo volumes 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 GLOBAL CONTAINER TRAFFIC (TEUs) COUNTRY TEUs China 199,565,501 United States 48,381,722 Singapore 31,688,000 Korea 26,373,000 Malaysia 24,570,000 United Arab Emirates 20,413,200 Japan 20,257,000 China, Hong Kong SAR 19,580,000 Germany 19,420,700 Spain 14,993,941

Source: United Nations Conference on Trade and Development – UNCTAD 2016 TEU: 20 Foot Equivalent Units CHINA-PAKISTAN ECONOMIC CORRIDOR

DISTANCE & COST ANALYSIS ACROSS VARIOUS TRADE ROUTES

Asia – Europe Central Asia to 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

WESTERN Route: Eastern Europe - Western China EUROPE CENTRAL ASIA CHINA Kashgar  47 Days 19132 MILES MIDDLE US$ 8026 EAST Port  44 Days LONG DISTANCE & HIGH COST 16507 MILES US$ 3301 19132 MILES US$ 8026

AFRICA EUROPE

29 Days 11845 MILES 35 Days US$ 2369 13845 MILES US$ 2769

US$1.80 Per Mile US$0.20 Per Mile CHINA-PAKISTAN ECONOMIC CORRIDOR Intermodal Routes for Regional Trade Prosperity

NEW TRADE ROUTE  Europe - China TRADE ROUTE CHINA-PAKISTAN ECONOMIC CORRIDOR  Europe - China Intermodal Routes for Regional Trade Prosperity

Kazakistan Route: Eastern Europe - Western China EUROPE CENTRAL ASIA WESTERN CHINA

 Kashgar 32 Days 9597 MILES MIDDLE US$ 4719 China-Pakistan Economic Corridor EAST Intermodal Transport Network (6 Days)

 Port 26 Days 7847 MILES AFRICA US$ 1570

SHORT DISTANCE & LOW COST 9597 MILES US$ 4719 41% LOWER 9535 Miles Saved COST

US$1.80 Per Mile US$0.20 Per Mile CHINA-PAKISTAN ECONOMIC CORRIDOR Intermodal Routes for Regional Trade Prosperity

TRADE ROUTE  Central Asia-Arabian Sea TRADE ROUTE CHINA-PAKISTAN ECONOMIC CORRIDOR Intermodal Routes for Regional Trade Prosperity  Central Asia - Arabian Sea Land Route: Central Asia – Arabian Sea

CENTRAL ASIA Chorgos Almaty  EUROPE  Tashkent  Osh Urumqi Kashgar Ashgabat Tehran  Mazar-i-Sharif Khunjerab MIDDLE China-Pakistan EAST Economic Corridor SHORT DISTANCE & LOW COST 2437 MILES US$ 4387  Karachi

10 Days 48% AFRICA LOWER 9298 Miles Saved 2437 MILES COST US$ 4387

CREATING ACCESS TO MIDDLE EASTERN, AFRICAN & FAR EASTERN MARKETS

US$1.80 Per Mile US$0.20 Per Mile TRADE ROUTE CHINA-PAKISTAN ECONOMIC CORRIDOR Intermodal Routes for Regional Trade Prosperity  Central Asia - Arabian Sea

Train Route: Central Asia – China – CPEC – Arabian Sea

 Antwerp  

 Kazakhstan - Urumqi (2778 Miles)

Black Sea  China

Caspian Uzbekistan  Sea  Kashgar Turkmenistan   Khunjerab  Mediterranean Sea 

Pakistan  Gwadar

expected trade route from Central Asia to access ArabianArabian SeaSea for Middle Eastern, African & Far Eastern Markets CPEC – CENTRAL ASIA PACT CHINA-PAKISTAN ECONOMIC CORRIDOR Intermodal Routes for Regional Trade Prosperity

Kazakhstan Tajikistan Turkmenistan Uzbekistan

“Kazakhstan announced on Tuesday “Tajikistan President Emomali “Turkmenistan's President “Pakistan on Friday formally invited its support and intention to join the Rehmanov assured Pakistan its Berdimuhamedov echoed Mr Sharif’s land-locked Central Asian State China-Pakistan Economic Corridor resolute support for the infrastructure views about the importance of CPEC and Uzbekistan to join the China-Pakistan (CPEC) in the long run when its Prime projects under the China Pakistan said it was a project that would Economic Corridor (CPEC) and has Minister Karim Massimov assured Economic Corridor (CPEC), providing guarantee progress and prosperity in the maintained that both the countries visiting Prime Minister greater connectivity between Pakistan region. “ need to formulate a joint integrated here that Kazakhstan would like to and Tajikistan, and completion of the strategy to exploit the potential of join the mega project as it would CASA-1000 project “ trade in the region, especially in view of provide an alternative route to the CPEC.” Central Asian State for access to sea.”

The News The News The Dawn The NEWS August 26, 2015 November 14, 2015 November 26, 2016 24 December 2016 CPEC LINKAGES IN GLOBAL TRANSPORT ROUTE CHINA-UNITED KINGDOM TRAIN CPEC Intermodal-Connectivity YIWU-LONDON Distance : 12,000 km Transit Time: 18 Days

Urumqi Kashgar

CPEC (Gwadar-Kashgar) 1864 miles (6 Days)

Gwadar Port Karachi Port PAKISTAN-IRAN-TURKEY TRAIN CPEC Intermodal-Connectivity -ISTANBUL Distance : 6543 km Transit Time: 13 Days

Kashgar

CPEC (Gwadar-Kashgar) 1864 miles (6 Days)

Gwadar Karachi Port Port Port Qasim PAKISTAN-IRAN-TURKEY ROAD ISLAMABAD-ISTANBUL CPEC Intermodal-Connectivity Distance : 11,000 km Transit Time: 23 Days

CHINA CPEC (Northern Corridor) Kashgar

Kunjrab Pass

PAKISTAN-IRAN-TURKEY CHINA-IRAN TRAIN CPEC Intermodal-Connectivity YIWU-TEHRAN Distance : 10,500 km Transit Time: 14 Days

Urumqi Istanbul Kashgar

Zahedan CPEC (Gwadar-Kashgar) 1864 miles (6 Days) Karachi Port Port Qasim ONE BELT – ONE ROAD (OBOR) CHINA IN GLOBAL TRANSPORT INFRASTRUCTURE CPEC Linkages with International Trade Routes

China-Pakistan Economic Corridor Intermodal Route(6 Days) CHINA-PAKISTAN ECONOMIC CORRIDOR INVESTMENT | INFRASTRUCTURE DEVELOPMENTS | PROJECTS CHINA-PAKISTAN ECONOMIC CORRIDOR INVESTMENTS Intermodal Routes for Regional Trade Prosperity

NORTHERN SECTION US$ 62 BILLION CHINESE INVESTMENT IN KEY PROJECTS

Energy 38

CENTRAL SECTION Rail 10.79

Road 6.10

SOUTHERN SECTION Gwadar Port 0.79

Fibre Optics 0.04

US$ Billion TRANSPORT INFRASTRUCTURE CHINA-PAKISTAN ECONOMIC CORRIDOR Intermodal Routes for Regional Trade Prosperity Road Infrastructure Projects

Length Estimated Cost # Project Name (km) (US$ M)

1 KKH Phase II (Thakot -Havelian Section) 118 1,305 2 -Karachi Motorway (- Section) 392 2,846 3 -Basima Road N-30 (110 km) 110 4 Upgradation of D.I.Khan - Zhob, N-50 Phase-I (210 km) 210 5 KKH Thakot-Raikot N35 remaining portion (136 Km) 136

Rail Infrastructure Projects 6 Expansion and reconstruction of existing Line ML-1 1,872 8,172 7 Havelian Dry port 40 8 Capacity Development of MAJOR ROUTES

ML1KarakoramPeshawar Railway -HighwayKarachi Line Motorway (1681 km) (1872(740 km)km)

Khunjerab Border Sost Dry Port Dry Port

Havelian Dry Port

5 hours travelling time will reduce to 1 hour through modern tunnels Dry Port

Dry Port Dry Port

Special Economic Zones (approved) Dry Port Multan Dry Port

Bin Qasim MAJOR ROUTES

Makran Coastal Highway Sost Dry Port Gwadar-Karachi (650 km)

Khunjerab Border Sost Dry Port Gilgit Dry Port

Havelian Dry Port

Sialkot Dry Port st Dry Port 1 CPEC Trade Convoy

Special Economic Zones (approved) Quetta Dry Port Multan Dry Port

Makran Coastal Highway (630 km)

Bin Qasim Gwadar Port MAJOR ROUTES

N25 HIGHWAY N55N50M8 HIGHWAYHIGHWAYMOTORWAY

Khunjerab Border Sost Dry Port Gilgit Dry Port

Havelian Dry Port

M14

Dry Port Lahore Dry Port

Special Economic Zones N50 N55 (approved) M14 MOTORWAY Quetta Dry Port Multan Dry Port

N25 Khuzdar Rateodero Basima N30

N85

M8 Hoshab Makran Coastal Highway (630 km)

Bin Qasim The Prime Minister of Pakistan travelled on M8 motorway in a military jeep driven by Chief of Army Staff. N85 HIGHWAY MAJOR ROUTES

APPROVED 7851 Acres

SNO SPECIAL ECONOMIC ZONES AREA (acre) INDUSTRY

Khunjerab Hattar Phase – VII SEZ 1 424 Mining, Marble, Fruit Processing Border Kyber Pakhtunkhwa Sost Dry Port Gilgit Dry Port Quaid-e-Azam Apparel 2 Park, 1536 Textile & Cotton Havelian Dry Port Punjab

M-3 Industrial City, Textile, Engineering & Construction, Chemicals, 3 4356 Pharmaceuticals, Eletronics, Food & Beverages, Punjab Information Technology M14 Sialkot Dry Port

Value Addition City, Dry Port Lahore Dry Port Textile, Chemicals, Pharmaceuticals, 4 Faisalabad 225 Engineering, Information Technology Special Economic Zones N50 N55 Punjab (approved) Quetta Dry Port Multan Dry Port SEZ 5 140 Agro based Industry & Date Processing

N25 Khuzdar Rateodero Consumer Goods, Food & Pharmaceuticals, Basima Korangi Creek SEZ Garments, Value Added Textile, Light N30 6 240 Sindh Engineering, Packaging & Printing, N85 Warehouses/Logistics M8 Hoshab Light Engineering, Auto Vendors, Steel Makran Coastal Highway (630 km) Bin Qasim SEZ Fabricating Units Chemical & Food, 7 930 Sindh Pharmaceuticals, Electrical & Consumer Goods and Furniture Bin Qasim SPECIAL ECONOMIC ZONES (SEZs) PLANNED 22878 Acres

SNO. SPECIAL ECONOMIC ZONES AREA (acre) INDUSTRY ICT Model Industrial Zone Steel & Steel Fabrication, Food Processing & Beverages, Pharmaceutical & Chemicals, Printing & Packaging, 1 500 Islamabad Light Engineering etc. Development of IP on Pakistan Steel Land 2 In Port Qasim near Karachi 1500 Steel, Auto & Allied, Pharmaceutical, Chemical, Printing & Packaging, Garment Sindh Moqpondass, SEZ 3 250 Marble/Granite, Iron Ore Processing, Fruit Processing Gilgit-Baldistan Mirpur, Special Economic Zone 4 1078 Mix Industry Azad Jammu Kashmir Mohmand Marble City 5 350 Marble & Other Mix Industry FATA Allama Iqbal Industrial City (M3), Faisalabad 6 3000 Textile, Steel, Pharmaceuticals, Engineering, Chemicals, Food Processing, Plastics, Agriculture Implements Punjab Punjab-China Economic Zone (M2), Sheikhupura 7 5000 Mix Industry Punjab Rashakai Economic Zone (M1), Nowshera 8 1000 Fruit & Food Processing, Textile Stitching and Knitting Bostan Industrial Zone Fruit Processing, Agriculture Machinery, Pharmaceuticals, Motor Bikes Assembly, Chromites, Cooking Oil, 9 1000 Ceramic Industries, Electric Appliances, Halal Food Industry Khuzdar Industrial Zone 10 5000 Fruit Processing, Agriculture Machinery, Pharmaceutical, Motor Bikes Assembly Balochistan China Special Economic Zone – Dhabeji 11 1000 Feasibility Under Study Sindh Keti Bundar 12 3200 Feasibility Under Study Sindh

Railway Routes

ML-3 Extenstion (560 km)

New Locomotives Imported Kotlajam

Up-gradation of Tracks ML-2 Extenstion (1050 km)

1872 km 1254 km 1560 km

Planning New Rail Link

Track-Access Projects under Public-Private Partnership CHINA-PAKISTAN ECONOMIC CORRIDOR EAST BAY EXPRESSWAY Intermodal Routes for Regional Trade Prosperity

Ground Breaking: November 2017 Expected Completion Date: September 2019

Gwadar East-Bay Expressway

The Eastbay Expressway Project envisages building a 19km-long road, connecting the Gwadar Port with the Makran Coastal Highway. CHINA-PAKISTAN ECONOMIC CORRIDOR GWADAR FREE ZONE Intermodal Routes for Regional Trade Prosperity Tax Exemption: 23 years Covered Area: 2300 acres. CHINA-PAKISTAN ECONOMIC CORRIDOR EXPO CENTRE GWADAR FREE ZONE Intermodal Routes for Regional Trade Prosperity

Date: 29-31 January 2018 CHINA-PAKISTAN ECONOMIC CORRIDOR GWADAR DESALINATION PLANT Intermodal Routes for Regional Trade Prosperity

Capacity: 250,000 Gallon Per Day CHINA-PAKISTAN ECONOMIC CORRIDOR GWADAR PORT Intermodal Routes for Regional Trade Prosperity

GWADAR PORT MASTER PLAN

The potential of ‘CPEC’ will be realized when Gwadar Port capacity reach its peak of cargo handling by 2045

100 BERTHS 400 Million Tons per annum CHINESE INVESTEMENT IN GLOBAL PORTS ONE BELT – ONE ROAD (OBOR) CPEC Linkages with International Trade Routes

EUROPE CHINA 105 MILLION 199 TEUs MILLION TEUs

THE HUB OF REGIONAL PROSPERITY

AFRICA 24 MILLION TEUs INVESTING IN ‘WIN-WIN’ STRATEGY

LEVERAGING TRADE BENEFITS OBOR WITH REGIONAL CONNECTIVITY THANK YOU