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The Development on China-Pakistan Economic Corridor (Cpec) Under ‘Belt & Road Initiative’

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The Development on China-Pakistan Economic Corridor (Cpec) Under ‘Belt & Road Initiative’ THE DEVELOPMENT ON CHINA-PAKISTAN 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 BELT AND ROAD INITIATIVE presented by Aasim Siddiqui, Former Chairman All Pakistan Shipping Association (APSA) Managing Director – Marine Group of Companies SILK ROAD ECONOMIC BELT MARITIME SILK ROAD 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 Central Asia 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 Indian Ocean in one route, and from China's Asia, Russia and Europe (the Baltic) linking China with the Persian Gulf and coast through the South China Sea to the the Mediterranean Sea through Central Asia South Pacific US$1TRILLION US$2.5 TRILLION Chinese Investment for ‘Belt & Road’ Initiative Chinese Trade Growth In Next Decade To Celebrate Along Global Population World GNP Known 35 100th Anniversary of China 70% living along the belt 55% present in the route 75% Energy Resources by 2049 YEARS CHINESE STRATEGY Developing Efficient Trade Corridors to Reach New Markets TRANSPORT LOCAL MERGERS INFRASTRUCTURE TO SERVICE DEVELOPMENT LARGE VOLUMES China has long term global COSCO & China Shipping Group have infrastructure investment plan of declared the establishment of the developing trade corridors to China COSCO Shipping Group, which is connect with Europe and other now the 4th biggest container shipping emerging markets through efficient company in the world and can service and cost effective routes large cargo volumes TRADE & ROUTES WHAT MATTERS THE WHICH REGIONS PLAYER WITH MOST FOR HAVE HIGH LEVEL OF HIGHEST VOLUMES OF TRADE ROUTES TRADE IMPORT/EXPORT CARGO 1 2 3 CARGO ASIA CHINA VOLUME EUROPE GLOBAL CONTAINER TRAFFIC (TEUs) COUNTRY TEUs China 199,565,501 United States 48,381,722 Singapore 31,688,000 Korea 26,373,000 Malaysia 24,570,000 United Arab Emirates 20,413,200 Japan 20,257,000 China, Hong Kong SAR 19,580,000 Germany 19,420,700 Spain 14,993,941 Source: United Nations Conference on Trade and Development – UNCTAD 2016 TEU: 20 Foot Equivalent Units CHINA-PAKISTAN ECONOMIC CORRIDOR DISTANCE & COST ANALYSIS ACROSS VARIOUS TRADE ROUTES Asia – Europe Central Asia to Arabian Sea CHINA-PAKISTAN ECONOMIC CORRIDOR Intermodal Routes for Regional Trade Prosperity Traditional TRADE ROUTE Europe - China TRADE ROUTE (Traditional) CHINA-PAKISTAN ECONOMIC CORRIDOR Europe - China Intermodal Routes for Regional Trade Prosperity WESTERN Route: Eastern Europe - Western China EUROPE CENTRAL ASIA CHINA Kashgar 47 Days 19132 MILES MIDDLE US$ 8026 EAST Shanghai 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) Karachi 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 Gwadar- Urumqi (2778 Miles) Black Sea China Caspian Uzbekistan Sea Kashgar Afghanistan Turkmenistan Khunjerab Iran 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 Nawaz Sharif 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 Port Qasim PAKISTAN-IRAN-TURKEY TRAIN CPEC Intermodal-Connectivity ISLAMABAD-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 Gwadar Port 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 Peshawar-Karachi Motorway (Multan-Sukkur Section) 392 2,846 3 Khuzdar-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 Pakistan Railways MAJOR ROUTES ML1KarakoramPeshawar Railway -HighwayKarachi Line Motorway (1681 km) (1872(740 km)km) Khunjerab Border Sost Dry Port Gilgit Dry Port Havelian Dry Port 5 hours travelling time will reduce to 1 hour through modern tunnels Sialkot Dry Port Dry Port Lahore Dry Port Special Economic Zones (approved) Quetta 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 Lahore 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 Sialkot Dry Port Dry Port Lahore Dry Port Special Economic
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