Gwadar to become the Major Hub for Trans shipment of Cars in the Region.

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If you are someone who has been closely following activities associated with Gwadar, you would know the kind of impact it has created in the local and international market due to its strategic location – the automobile import/export market is one of these sectors that has started to create a buzz in the industry. Wondering what the impact for this latest development is? Don’t worry, we have you covered. Here is what is going on:

Current Import/Export Scenario

At this moment, cars that are to be exported to African and Central Asian countries from Japan are first sent to Middle Eastern ports from where they are re-exported to their final respective destinations. The cost associated with such a transit usually results in a huge amount because the distance between the two ports is magnanimous. To break it down into layman terms, look the image below to get a rough idea between the distance between the two points (That too via a straight-line approach where we are looking at the shortest possible distance – When working with sea ports, the distance would be even higher)

Distance between Middle East and Japan as per Google Maps

Gwadar’s Strategic Location

On the other hand, the distance between Gwadar and Japan is lower. This is due to the fact that it is right at the edge and is a natural deep sea port. Again, in layman terms and only for the sake of giving out a comparison, below is an image which talks about the shortest distance between the two locations:

Distance between Gwadar and Japan as per Google Maps

This reduction in distance will ultimately result in a cut-down on cost and thus increase the profitability for the importing/exporting bodies.

The Benefit to Gwadar and Pakistan?

In all of this import/export collaboration between Japan and Pakistan, the benefiting party will definitely also be the local market. How? A trade volume of at least US $16 billion can result from this and not only that, it will improve the local job market by creating a vast number of opportunities in the locality. Also, with this kind of substantial trade volume, the Gwadar port will find its way to the regional map and will get the recognition it deserves. The importers associated with this project and initiative will be playing a vital role by helping the country prosper in the automobile industry.

So, what is the latest development in this?

Well, to formalize this initiative, a Tri party MOU has been signed between MOU signed between Chairman Mr.  Muhammad Naeem (Shano) The Automobile Traders and Importers Association, Mr. Tariq Hussain of BM 360 and CEO Gwadar International Terminal Limited (GITL) Capt. Dai Xiaolong. BM 360 is the company that is responsible to facilitate and bring together this initiative between GITL and The Automotive Traders & Import Association. Mr. Muhammad Naeem (Shano) also has informed that the first ship carrying cars for transshipment will be arriving at Gwadar port in the month of February 2018.

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