Pakistan hands Gwadar port management to China

ISLAMABAD Mon Feb 18, 2013 10:16pm IST

1 of 2. A general view of Pakistan's Gwadar deep-sea port on the Arabian Sea March 19, 2007.

Credit: Reuters/Qadir Baloch/Files

ISLAMABAD (Reuters) - China took over management on Monday of Pakistan's Gwadar port, en route to key Hormuz Straits oil shipping lanes, in a move which has prompted nerves in India about its fellow Asian giant's growing strategic clout.

China financed more than 80 percent of the $248 million development cost of the port on the Arabian Sea, as part of a plan to open up an energy and trade corridor from the Gulf, across Pakistan to western China.

When complete, the port could be used by the Chinese Navy, analysts say, and Indian Defence Minister A.K. Antony told reporters on February 6 that Chinese control of the port was "a matter of concern."

Indian policy-makers are wary of a string of strategically located ports being built by Chinese companies in its neighbourhood, as India beefs up its military clout to compete.

China has also funded ports in Hambantota, Sri Lanka, and Chittagong in Bangladesh, both India's neighbors.

After a signing ceremony on Monday, Pakistani President Asif Ali Zardari said he hoped Gwadar would soon be a "hub of trade and commerce in the region".

In January, Pakistan's cabinet approved the transfer of Gwadar port from Singapore's PSA International to Chinese Overseas Port Holdings Limited.

(Editing by Jason Webb)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

Falling Oil Prices

Falling Oil Prices

Indian consumers respond to softer oil, food prices  Full Article 

Asian Markets

Asian Markets

Asian shares shine on U.S. tech results, ECB hopes  Full Article 

Pollution Levels

Pollution Levels

Delhi braces for worst air quality this Diwali week.  Full Article 

Stalemate

Stalemate

WTO prepares for crisis talks as India keeps veto on global deal.  Full Article 

Deal Talk

Deal Talk

Smartphone repair company B2X steps up expansion with Indian deal.  Full Article 

Ebola Outbreak

Ebola Outbreak

India to step up travel surveillance to stop any Ebola outbreak  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage