the development on china-pakistan economic corridor (cpec) · china-pakistan economic corridor...

presented by

Aasim Siddiqui, ChairmanAll Pakistan Shipping Association (APSA)Managing Director – Marine Group of Companies

THE DEVELOPMENT ON

CHINA-PAKISTAN ECONOMIC CORRIDOR (CPEC)UNDER ‘ONE BELT-ONE ROAD’ INITIATIVE

WHAT MATTERS THE

MOST FOR

TRADE ROUTES

CARGOVOLUME

1

WHICH REGIONS

HAVE HIGH LEVEL OF

TRADE

ASIAEUROPE

2

PLAYER WITH

HIGHEST VOLUMES OF

IMPORT/EXPORT CARGO

CHINA

3

TRADE & ROUTES

LOCAL MERGERS TO SERVICE LARGE VOLUMES

COSCO & China Shipping Group have declared the establishment of the China COSCO Shipping Group, which is now the 4th biggest container shipping company in the world and can service large cargo volumes

CHINESE STRATEGY

TRANSPORT INFRASTRUCTURE

DEVELOPMENT

China has long term global infrastructure investment plan of

developing trade corridors to connect with Europe and other

emerging markets through efficient and cost effective routes

Developing Efficient Trade Corridors to Reach New Markets

ONE BELT-ONE ROAD (OBOR)

Silk Road Economic Corridors

Maritime Silk Road

SILK ROAD ECONOMIC BELT MARITIME SILK ROAD

Intermodal Routes for Regional Trade Prosperity

China Economic Corridors

In October 2013, President Xi proposed building a close-

knit China-ASEAN community and offered guidance on

constructing a 21st Century Maritime Silk Road to

promote maritime cooperation, to finance infrastructure

construction and promote regional interconnectivity and

economic integration.

The 21st-Century Maritime Silk Road is designed to go

from China's coast to Europe through the South China

Sea and to the Indian Ocean in one route, and from

China's coast through the South China Sea to the

South Pacific

The Silk Road Economic Belt concept was introduced by

Chinese President Xi Jinping during his visit to

Kazakhstan in September 2013 and suggested that

China and Central Asia may cooperate to build a Silk

Road Economic Belt.

The Silk Road Economic Belt focuses on bringing

together China, Central Asia, Russia and Europe (the

Baltic) linking China with the Persian Gulf and the

Mediterranean Sea through Central Asia

A GAME CHANGERONE BELT-ONE ROAD (OBOR) INITIATIVE


US$900BILLIONChinese Investment for ‘OBOR’ Initiative

70% Global Populationliving along the belt

55% World GNPpresent in the route

75% KnownEnergy Resources

35YEARS

To Celebrate Along 100th Anniversary of China by 2049

US$2.5 TRILLIONChinese Trade Growth In Next Decade

Accelerating the Trade Growth

GLOBAL CONTAINER TRAFFIC (TEUs)

Source: World Bank - Container port traffic 2014 (TEU: 20 foot equivalent units)

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

CHINA-PAKISTAN ECONOMIC CORRIDOR

DISTANCE & COST ANALYSIS ACROSS VARIOUS TRADE ROUTES

Traditional

TRADE ROUTE

Europe - China



TRADE ROUTE (Traditional)

Europe - China

EUROPE

13845 MILES(US$ 2769)

16507 MILES(US$ 3301)

Shanghai Port

AFRICA

EUROPE

MIDDLE EAST

WESTERNCHINA

LONG DISTANCE & HIGH COST

11845 MILES(US$ 2369)

19132 MILES(US$ 8026)

Kashgar

CENTRAL ASIA



19132 MILES US$ 8026

Route: Eastern Europe - Western China

US$1.80 Per Mile US$0.20 Per MileCarbon Emission: 0.14645 kg CO2e per Tonne-Mile Carbon Emission: 0.0602 kg CO2e per Tonne-Mile

NEW

TRADE ROUTE

Europe - China



TRADE ROUTE (NEW)

9597 MILES (US$ 4719)

China-Pakistan Economic CorridorIntermodal Transport Network

AFRICA

EUROPE

MIDDLE EAST

WESTERN CHINA

Karachi Port

7847 MILES(US$ 1570)

KazakistanKazakistan

CENTRAL ASIAKashgar

SHORT DISTANCE & LOW COST

9535 Miles Saved41%LOWERCOST

9597 MILES US$ 4719

Europe - ChinaCHINA-PAKISTAN ECONOMIC CORRIDOR


Route: Eastern Europe - Western China


Traditional

TRADE ROUTE

Middle East- China




EUROPE

6521 MILES(US$ 1304)

Shanghai Port

AFRICA

EUROPE

MIDDLE EAST

WESTERNCHINA

9146 MILES(US$ 6029)

Kashgar

CENTRAL ASIA


9146 MILES US$ 6029

Middle East- ChinaCHINA-PAKISTAN ECONOMIC CORRIDOR


Route: Middle East - Western China


NEW

TRADE ROUTE

Middle East- China



TRADE ROUTE (NEW)

2546 MILES (US$ 3309)


AFRICA

EUROPE

MIDDLE EAST

WESTERN CHINA

Karachi Port

796 MILES(US$ 160)


CENTRAL ASIAKashgar



2546 MILES US$ 3309

Middle East- ChinaCHINA-PAKISTAN ECONOMIC CORRIDOR


Route: Middle East - Western China


Traditional

TRADE ROUTE

Africa - China




EUROPE

7160 MILES(US$ 1432)

Shanghai Port

AFRICA

EUROPE

MIDDLE EAST

WESTERNCHINA


9785 MILES(US$ 6157)

Kashgar

CENTRAL ASIA

9785 MILES US$ 6157



Africa - China

Route: Eastern Africa - Western China


NEW

TRADE ROUTE

Africa - China



TRADE ROUTE (NEW)

4464 MILES (US$ 3692)


AFRICA

EUROPE

MIDDLE EAST

WESTERN CHINA

Karachi Port

2714 MILES(US$ 542)


CENTRAL ASIAKashgar



4464 MILES US$ 3692



Africa - China

Route: Eastern Africa - Western China


NEW

TRADE ROUTE

Central Asia-Arabian Sea



TRADE ROUTE


AFRICA

EUROPE

MIDDLE EAST

WESTERN CHINA

Central Asia to Arabian Sea

1553 MILES(US$ 2796)


CENTRAL ASIA(Landlocked)

Kashgar

US$1.80 Per Mile US$0.20 Per Mile



Central Asia- Arabian Sea

Route: Central Asia – Arabian Sea

ASIA PACIFIC

SHORT DISTANCE TO ARABIAN SEA

1553 MILES US$ 2796

CPEC TRADE ROUTES (SUMMARY)



ChinaKey Markets

Distance/Route(Miles)

Cost Savings (US$ - Per Miles)

TraditionalRoute

CPECRoute

DistanceSaved

TraditionalRoute

CPECRoute

CostSaving

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


INVESTMENT | INFRASTRUCTURE DEVELOPMENTS | PROJECTS

INVESTMENTS

NORTHERNSECTION

CENTRAL SECTION

SOUTHERNSECTION

Long Term CPEC Alignment1517 miles

Karachi – Peshawar Motorway956 miles

Karachi – Lahore Motorway720 miles

Gwadar – D.I. Khan via Quetta578 miles

Gwadar – Kashgar1750 miles

NORTHERN ROUTE

EASTERN ROUTE

WESTERN ROUTE

CENTRAL ROUTE

US$ 54 BILLIONCHINESE INVESTMENT ACROSS CPEC

Energy

Rail

Road

Gwadar Port

Fibre Optics

36

10.79

6.10

0.79

0.04

US$ Billion



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

SPECIAL ECONOMIC ZONES (SEZs)

CPEC TRADE BENEFITS



The accession of China & Pakistan to UnitedNations TIR Convention will openinternational boundaries for CPEC corridorto move cargo from China via Pakistan tointernational markets with custom clearanceat final destination only

CPEC will create an efficient & costeffective intermodal trade route to moveits cargo from Western China via Pakistanto Middle East, Africa and Europe

Pakistan-China enjoys a Free TradeAgreement and Chinese productsimported in Pakistan have NO CUSTOMDUTY on it.

Pakistan offers a growing consumer marketof over 200 Million consumers for ChineseProducts & under CPEC Tax Free IndustrialZones Chinese companies can setup theirassembly and manufacturing facilities inPakistan

EASTERN CORRIDOR (1195 km)Karachi-Lahore Motorway

M3 | M4 | M5 | M6 | M9

CENTRAL ALIGNMENT (637 km)Cities: Shahdadkot to D.I. Khan

Route: N55

NORTHERN CORRIDOR (850 km)Cities: Kashgar to Islamabad(Burhan)

Route: Karakoram Highway (KKH) N35 | Hazara Expressway E35

WESTERN CORRIDOR (1670 km)Cities: Islamabad to Gwadar

Route: Bharma Bhattar – Yarik | N50 | N85 | M8 Motorway

EAST-WEST ALIGNMENT (357 KM)Cities: Islamabad (Burhan) to Lahore

Route: M2 Motorway

WEST-EAST ALIGNMENT (700 KM)Cities: Hoshab to Ratodero

Route: M8 Motorway

M8

M8

Under Construction

PORT-TO-PORT CONNECTIVEITY(650 km)Cities: Gwadar to Karachi

Route: N10 - Makran Coastal Highway Project (MCHP)

TRANSPORT INFRASTRUCTURECHINA-PAKISTAN ECONOMIC CORRIDOR


CPEC TRADE CONVOY

CPEC TRADE CONVOY

Chinese trucks, part of first CPEC consignment, lined up along the Karakoram Highway (KKH) in Dry Port Sost Town of Hunza

CPEC TRADE CONVOY

First Consignment of CPEC passing through the Western Corridor from Zhob (Baluchistan)

CPEC TRADE CONVOY

First CPEC Train Unloaded at Port Qasim (Karachi) by Eastern Railway Route from Havelien

CPEC PORT INFRASTRUCTURECHINA-PAKISTAN ECONOMIC CORRIDOR


GWADAR PORT MASTER PLAN

100 BERTHS 400 Million Tons per annum

The potential of ‘CPEC’ will be realized when

Gwadar Port capacity reach its peak of

cargo handling by 2045

LEVERAGING TRADE BENEFITS

WITH REGIONAL PLAYERS

INVESTING IN ‘WIN-WIN’ STRATEGY

OBOR

CHINESE INVESTEMENT IN GLOBAL PORTS



105MILLION

TEUs

EUROPE

181MILLION

TEUs

CHINA

REGIONAL PROSPERITYTHE HUB OF

24MILLION

TEUs

AFRICA

THANK YOU

the development on china-pakistan economic corridor (cpec) · china-pakistan economic corridor...

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