Economic Cooperation Organization (ECO) has sought the Ministry of Ports and Shipping for carrying out a study on six ports of Pakistan, Turkey, and Iran. They also asked for the establishment of ECO Zones in the respected ports.
According to a letter (No. FPCCI/ECOCCI/2011-2295), dated June 10, 2011, from Acting Secretary General ECO Maher Alam Khan to the Secretary Ministry of Ports and Shipping Pakistan Muhammad Salim Khan the ECO is going to hold a meeting in Karachi on 14 to 16 September in this regard.
The letter stated that the ECO is seriously considering carrying out a study of the six sea ports of the member countries in order to specify their logistic capacities that can provide facilities for the landlocked countries of the ECO region. The ports that have been selected for the study include Trabzon and Mersin from Turkey, Bandar-Abbas and Chahbahar from Iran, and Gawadar and Port Muhammad bin Qasim from Pakistan.
Also, the meeting would reach a decision about providing land free of charge for ‘ECO Zones’ near all the selected ports by relevant ECO countries, the letter added.
In this regard, the former Director General Ministry of Ports and Shipping Captain Anwar Shah while responding to the ECO letter said that the proposal of carrying out a study to determine the capabilities of the ports in the region would definitely serve the landlocked countries.
‘The study to be carried out may identify Port handling capacities of Bulk and General Cargo, container handling capacity of 2.1 million TEUs at Karachi and Port Qasim terminals, additional capacity of handling boxes due to commissioning of QICT II and Pakistan Deep water container Port, and access to the ports through express ways and by passes to ensure quick turn around of ships,’ he added.
Similarly, he stressed, that in order to facilitate landlocked countries the study should also identify inter section logistic centers (ICDs) in both Pakistan and Central Asia, while it is to be noted that presently two ICDs have been built at Premnagar Lahore, which can be taken as an example for further initiatives in this regard.
He further stated that the study shall be of immense value to all ECO countries. Turkey has Trabzon port to serve the black sea region and Mersin port in the Mediterranean to serve Turkish mainland and Syria.
Iran is already making good use of Bunder Abbas by providing facilities to North of Afghanistan and Central Asia due to excellent logistic facility, therefore, a study is important to identify potentials, weakness and recommend improvements for selected ports, he added.
Shah said that Pakistan must buy the proposal by reserving free of cost land near Gwadar Port, so that Gwadar Port may serve as transit port for landlocked countries. Moreover, Pakistan may offer land on Northern bypass and Eastern Zone of Port Qasim for ECO zones, he suggested. The said meeting in September is being hosted by the Federation of Pakistan Chambers of Commerce and Industry (FPCCI).
ECONOMIC COOPERATION ORGANIZATION (ECO)
Is an intergovernmental regional organization established in 1985 by Iran, Pakistan and Turkey for the purpose of promoting economic, technical and cultural cooperation among the Member States. ECO is the successor organization of Regional Cooperation for Development (RCD) which remained in existence since 1964 up to 1979. In 1992, the Organization was expanded to include seven new members, namely: Islamic Republic of Afghanistan, Republic of Azerbaijan, Republic of Kazakhstan, Kyrgyz Republic, Republic of Tajikistan, Turkmenistan and Republic of Uzbekistan. The date of the Organization’s expansion to its present strength, November 28, is being observed as the ECO Day. The ECO region is full of bright trading prospects. Despite its young age, ECO has developed into a thriving regional organization. Its international stature is growing. Nevertheless, the organization faces daunting challenges with respect to realization of its objectives and goals. Most importantly, the region is lacking in appropriate infrastructure and institutions which the Organization is seeking to develop, on priority basis, to make full use of the available resources in the region. Over the past 12 years the member states have been collaborating to accelerate the pace of regional development through their common endeavors. Besides shared cultural and historic affinities, they have been able to use the existing infrastructural and business links to further fortify their resolve to transfer their hopes and aspirations into a tangible reality. ECO has embarked on several projects in priority sectors of its cooperation including energy, trade, transportation, agriculture and drug control.
Excellent idea if it can be implemented successfully.
It’s the call of the time, if we don't respond with full commitment, with our full resources & potential then others will take advantage & will grab our share.
Keep it up Mr. Shah.
Mohammad Ali
Thank you Captain Anwar for sharing this News item; it brings to my mind what has been on since many years. I like to share it with you.
Pakistan has harped over this issue for decades. Nearly all governments since fifties have taken up the empty talk, except Ayub Khan time that stopped at Karakuram Highway; which was constructed BY Pak army and Chinese Army. ECO states, but, have to get excess to the ports for their trade through the seas. Till their independence, it was through the ports of the then USSR via the Black Sea. Most economic way for these countries would be to trade through Iran or Pakistan, rather than to go through Russia (Barnets or Black Sea)or China (Yellow sea). At present, Iran is far ahead of Pakistan, because it has developed its Road/ Rail link to Mashad from Bandar Abbas/Chahbahar. Secondly Afghanistan, politically most unstable and unsafe, comes in the way mainly to Tajikistan from Pakistan; that leaves Taftan/Zahidan route through Iran. Obviously, with the absence of any agreement, it is more expensive because of a 3rd country in between from Pakistan. An important charge that both Iran and Pakistan would not receive from the ECO countries in transporting their goods is Pakistan/Iran's initial investment on the Roads/Railway links to those countries. Though the charge paid through the highways tolls takes care of the roads maintenance expense. Iran and Pakistan should sit together to decide on the cost to be charged at the ports in this head to the containers for ECO countries, rather than becoming over competitive with each other. With the independence of ECO countries in early nineties, Pakistan once again got hot on developing Gwadar; that it shall become gateway to the trade to the ECO countries. None of the political governments did make any input till Musharraf era, where Gwadar became a seaport with one berth and a plan for a road link to Ratto Dero was chalked and still a distance plan for a rail link from Gwadar to Sibi for Chaman/Hvelian is in the files since then. The present state of Gwadar Port and its linkage to the hinterland is what was of Chahbahar and Bandar Abbas in 1979. Iran was then planning on railway link from Chahbahar and Bandar Abbas to Mashad for connecting to Afghanistan and Turkamanistan. Pakistan though has road and railway till Torkham, Chaman and Taftan but only Karachi can feed it; Gwadar still is out of picture. Once upon a time, during Ayub Khan government, it was said that we shall have rail link from Havilian to Soust (Chinese Border Town with Pakistan on Karakuram Highway) for trade with Urumqi, Kashi and Almati. At present we have road link and are able to carry 20 ft containers only; therefore, road has to be improved for 40 feet containers and in parallel work on rail link from Havailian to Sousk must start now; if Pakistan has to benefit from trade to Central Asia through Pakistan. At present the areas mentioned above, trade through Yellow sea; which would become cheaper via Pakistan as stated above. The planning and construction at full speed would take at least a decade to complete. Therefore, we must begin right now to be somewhere on the way by 2020. At present, Iran has a definite edge over Pakistan in the trade of Central Asian states though Arabian Sea and Pakistan has an insignificant share in it. This news item still seems to be like a rhetoric by a Pakistani Secretary General of ECO, that has been on for a number of decades in Pakistan.
Sadeed Malik.
Shah sb,ideally,it should have been done much earlier but still much can be done.provision of land will be an uphill task.PN and PCG have already not vacating express way land.presentally no land aval near port.however surbander near jiwani has huge land.more over govt should purchase now adjacent land to port from locals.presently very cheap.overall .v good concept contemplating the future reginal scnario.regard.bukhary
To my mind, to be able to exploit the potential that exists in CARs and Western China, following elements are significant for Pakistan:
•Adopt a business mind-set in promoting transit trades. This means facilitating the movement by simplification of our processes and documentation. Once we have the mind-set the benefits may flow. Turkey and Iran both make billions through transit trade.
•In the long term the weght of economics lies in favour of railway. This should be made a key factor to achieve.
•Law and order and peace is essential all along the route, whether in Pakistan, Afghanistan or elsewhere.
•Whether the trade moves through Karachi/ Port Qasim or Gwadar is not an overriding factor, at least in the short term.
Any such in-depth study would be interesting. Iran and Turkey could do something useful with it but not us. Since the move of capital from Karachi to Islamabad our politico-bureaucratic thinking has become continental–as remote from maritime matters as the two cities are!
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