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

Market Eye

REUTERS SHOWCASE

Bullish on Equities

Bullish on Equities

Bullish on Indian equities, but gains seen 'less sharp'- Goldman Sachs  Full Article 

Short of Expectations

Short of Expectations

Apple revenue lags Street's view despite strong China growth  Full Article 

Political Economy

Political Economy

Analysis - Watch what markets don't do as world politics turns nasty   Full Article 

Mircosoft Results

Microsoft Results

Microsoft revenue rises, profit falls as Nokia absorbed  Full Article 

Relief For Sahara

Relief For Sahara

Supreme Court could allow Sahara boss to conduct asset sale talks, company says.  Full Article 

Photo

Food Scandal

Five held in China food scandal probe, including head of Shanghai Husi Food   Full Article 

Reuters India Mobile

Reuters India Mobile

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