Taking over of Gwadar port is for strategic reasons: Analyst

BEIJING: China agreed to take over Pakistan's Gwadar port in volatile Baluchistan despite security risks because of the project's strategic value, a Chinese analyst said.

Worsening security in the extremist-ridden Baluchistan, a lack of warehouse facilities, and slow pace in building rail and road links have clouded prospects that the port can soon be fully operational, state-run Global Times said in its report today.

The Singapore company, which left Gwadar Port "put more value in the commercial benefits in operating the port. But for China, its strategic values is greater than the commercial significance," Lin Boqiang, director of the China Centre for Energy Economics Research at Xiamen University said.

"I do believe China will build the port at the astonishing 'Chinese speed' to materialise the port's strategic values," he said.

Lin believed that the injection of Chinese investment could soon vitalise the port with strategic importance.

Yesterday Chinese Foreign ministry Spokesman Hong Lei defended China's decision to take over the port operations it is part of the continued cooperation between the two countries.

Taking over Gwadar operations means that Beijing would be undertaking the biggest infrastructure project in Pakistan after it Karakorram Highway road project connecting the two countries in 1976.

China will be stepping into the port located at the entrance of the Persian Gulf about 75 km east of Pakistan's border with Iran.

It also evoked apprehensions among the Indian strategic community in India as it is in the proximity of Mumbai's port.

China recently said it would construct another 20 berths at Gwadar if it was given the rights to operate the port.

Beijing has been working to develop a string of harbours in the Indian Ocean and Arabian Sea, a region traditionally considered an Indian backyard.