annashay 
KARACHI: By capitalising on its strategic coastal geography and deep-rooted ties with China, Pakistan is transforming Gwadar into a thriving transshipment hub, bridging South Asia with the Gulf and beyond.
For decades, Gwadar remained a sleepy fishing town on Pakistan’s southwestern coastline. Today, it stands on the cusp of becoming a vital node in the global maritime trade network, thanks to a confluence of visionary policy, strategic investment, and unwavering support from Pakistan’s ironclad partnership with China. As the federal government unveils a fresh expansion plan for Gwadar Port – including new shipping lines and a passenger-cargo ferry service to Gulf Cooperation Council (GCC) countries – the future of Pakistan’s maritime economy appears more promising than ever.
Business and economic benefits: Federal Minister for Maritime Affairs Muhammad Junaid Anwar Chaudhry has now unveiled an ambitious new expansion plan that marks a turning point in Pakistan’s maritime strategy. Key highlights of the initiative include:
= New shipping lines linked directly to Gwadar, reducing dependence on traditional ports like Karachi and Port Qasim.
= A new ferry service connecting Gwadar to GCC nations such as the UAE, Saudi Arabia, Bahrain, and Qatar.
= Enhanced infrastructure for passenger and cargo traffic, particularly benefiting Pakistani expatriates and cross-border traders.
= Strengthened focus on regional logistics and transshipment, linking Central Asia and the Middle East through Gwadar.
This initiative is part of the federal government’s broader strategy to promote regional connectivity, reduce logistics costs, and elevate Pakistan’s maritime trade capacity. Junaid Anwar affirmed that the goal is to transform Gwadar into “a strategic transshipment and logistics centre benefiting Pakistan and the wider region.”
Gwadar’s evolution is more than symbolic – it is economic in the most tangible sense. For Pakistan, the operationalisation and expansion of Gwadar Port present multiple avenues of national and regional economic uplift.
1. Diversifying trade routes: Gwadar provides an alternative maritime gateway, easing congestion on existing ports and opening new lanes for import and export traffic, especially for goods bound to and from the GCC. The reduction in transit times and cost efficiency will directly benefit Pakistani exporters, especially in the agriculture, textiles, and mineral sectors.
2. Boosting logistics and supply chains: The development of industrial zones, bonded warehouses, and cold storage at Gwadar means goods can now be processed, packaged, and shipped more efficiently. This will attract regional investors and multinational logistics companies to set up operations.
3. Gateway to Central Asia: Landlocked Central Asian Republics (CARs) have long sought direct access to the sea. Gwadar offers them the most viable route, especially for oil, gas, and mineral exports. Pakistan, through Gwadar, stands to become a commercial conduit, collecting transit fees, fostering diplomacy, and deepening bilateral trade.
4. Job Creation and skills development: With expansion comes employment. The port and its allied projects are generating thousands of direct and indirect jobs for the people of Balochistan, empowering local communities and uplifting one of Pakistan’s most underdeveloped regions.
5. Tourism and passenger movement: The proposed ferry service to GCC countries opens new prospects in passenger transport, religious tourism (particularly to Saudi Arabia), and diaspora movement. It will also provide a lifeline to Pakistani expats looking for affordable travel options.
Gwadar is not just a port – it is a statement of Pakistan’s ambition, resilience, and ability to shape its own economic destiny. With the government’s proactive policies and global alliances like CPEC in place, the port is now being repositioned as the nucleus of regional trade in the Arabian Sea.
Future benefits are manifold:
= Foreign Direct Investment (FDI) inflows into logistics, warehousing, shipbuilding, and hospitality.
= Greater customs and tariff revenue as port traffic increases.
= Strategic leverage in regional trade and maritime security dialogues.
= Enhanced economic resilience through diversification of trade partners and markets.
Gwadar Port has already emerged from its dormancy. In 2023-24, it successfully handled nine bulk grain carriers, offloading around 450,000 tonnes of imported Russian wheat with zero stevedoring losses – thanks to full automation and the WeBOC customs system – showcasing the port’s capacity for large scale, efficient cargo throughput. Meanwhile, Afghan bound shipments are increasingly routed through Gwadar. By mid 2024, multiple vessels delivered DAP fertiliser and urea, moving via 550+ trucks through Chaman under the revised APTTA framework supported by insurance backed financial reforms – a testament to Gwadar’s rising status as the go to gateway for both Pakistan and Afghanistan. Notably, the government has directed that at least half of all public sector cargo – from wheat to fertilizers – be routed through Gwadar, a move that has already reduced Karachi Port congestion and improved national logistics pacing.
Building on this momentum, the ferry service to GCC nations and new shipping lines are set to launch imminently under Minister Chaudhry’s roadmap unveiled in early July 2025. While Karachi Gulf container services connecting Abu Dhabi, Sharjah, and Jebel Ali have operated since around 2018, the upcoming launch from Gwadar marks the first direct passenger cargo ferry, likely to commence late 2025. This will send a strong signal: Gwadar is not just serving domestic logistics – but is now fully wiring into Gulf and Middle Eastern markets, promising faster, cheaper routes for Pakistani exporters and diaspora travellers alike. The integration of shipping lines and ferry routes is projected to roll out in phases – cargo liners first in Q4?2025, followed by passenger cargo ferries by Q1?2026 – cementing Gwadar’s future as a bustling transit hub.
From deserted coast to global corridor: The journey of Gwadar’s transformation is deeply linked with Pakistan’s ambition to shift from a consumption-driven to a trade- and investment-oriented economy. In 1958, Pakistan purchased the Gwadar enclave from Oman, laying the foundation for what would become one of the most geopolitically significant ports in the region. However, it wasn’t until 2007 that the port saw its initial inauguration, and even then, operations remained limited due to inadequate connectivity and infrastructure bottlenecks.
This changed dramatically with the advent of the China-Pakistan Economic Corridor (CPEC) – a cornerstone initiative of the Belt and Road Initiative (BRI) launched by China in 2013. Under CPEC, Gwadar was envisioned not just as a standalone port, but as the southern terminus of a trade and energy corridor linking western China to the Arabian Sea.
China’s investment in Gwadar Port and its adjoining infrastructure – including roadways, free zones, and airport facilities – has injected life into the region. Today, the port is fully operational, equipped with modern cargo handling facilities, and is poised for its next phase of growth.
The Pakistan-China partnership remains the backbone of Gwadar’s rise. From funding the Gwadar International Airport to constructing the East Bay Expressway, Chinese support has been unwavering. The collaboration extends beyond physical infrastructure to include training, technology transfer, and digital maritime operations.
In return, China gains a secure and cost-effective route to Middle Eastern oil and African markets, bypassing the vulnerable Strait of Malacca. This strategic alignment of interests has created a win-win model, fortifying the “all-weather friendship” between the two nations.
At every level, the Chinese government and private sector have shown commitment to the long-term success of Gwadar. The Free Trade Zone (FTZ) operated by the China Overseas Ports Holding Company has attracted numerous enterprises, with tax incentives and regulatory ease promising even more in the years to come.
The government’s new expansion plans are a timely step in the right direction. It reflects Pakistan’s seriousness in unlocking Gwadar’s true potential and solidifying its standing in the global economy.
At a time when the global economy is grappling with instability and fractured supply chains, Pakistan’s leadership under Prime Minister Shehbaz Sharif is choosing ambition over anxiety. The focus on Gwadar is more than a maritime agenda – it is a national economic strategy rooted in regional cooperation, infrastructure-driven growth, and diplomatic pragmatism.
As ferry routes to the GCC begin and shipping lines multiply, Gwadar’s roar in the Arabian Sea will no longer go unheard. It is Pakistan’s maritime future – rising, thriving, and shining.
