An Omani project financing group, Anvwar Asian Investments (AAI), hasoffered to invest in a train line to connect Gwadar to Pakistan’s mainrailway system.
Earlier this month, its officials met with representatives of Pakistan’sBoard of Investment (BOI) and expressed a keen interest in developing a1,087 km railway line worth $2.3 billion between Gwadar and Jacobabad.
The BOI revealed that the AAI is willing to provide $500 millionimmediately as initial financing.
The proposed multibillion-dollar investment could address Gwadar’s lack ofrail connectivity with the rest of the country. However, Pakistan’svolatile political situation casts a doubt on the possibilities of movingthe plan ahead and fulfilling the port’s potential.
Despite being the center of China’s Belt Road Initiative (BRI), the portcity is not linked with any train lines. Meanwhile, political uncertaintyshrouds the possibility of other railway upgrades under the $50 billionworth China-Pakistan Economic Corridor (CPEC).
If the project materializes, it will make Gwadar and its Chinese-made andoperated seaport more accessible.
The President of Gwadar’s Rural Community Development, Nasir Sohrabi,stressed that the port cannot be successful if it does not have a strongrailway network.
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He elaborated, “Currently, the cargo which is unloaded at Gwadar Port istransported by road to Karachi [and] from there it’s shipped to other partsof the country via rail” and added, “if this is the case, then it makesmore sense to unload cargo directly at Karachi Port instead of Gwadar”.
Some view the Omani group’s proposal as a quid pro quo move for supportingthe CPEC, as China is investing in an industrial park in Oman’s port town,Duqm, which is 1,000 km south of the Strait of Hormuz — an importantshipping lane.
Interestingly, AAI is not the only entity interested in developing arailway network in Gwadar. Its contender is a Singaporean company calledPathfinder, as revealed by the Chairman of the Balochistan Board ofInvestment and Trade, Saeed Ahmed Sarparah.
“A Singaporean company, Pathfinder, has expressed its interest to invest $5billion to develop a high-speed rail network from Gwadar to Hub”, he saidand added that the federal government is assessing its offer.
