China Starts operations at Gwadar Port as Pakistan Navy Ready to Protect CPEC Route

China Overseas Holdings Limited takes the control of Gwadar Port for next 43 years and Pakistan Navy expressed the security commitments

A Chinese firm has officially taken full control of Gwadar Port of Pakistan under the Free-Trade zone agreement for 43 years with Pakistan. On other hand, Chief of the Naval Staff, Admiral Mohammad Zakaullah of Pakistan Navy has committed to protect the China Pakistan Economic Corridor Route and provide fool proof security on the sea route. He confirmed to offer security “against all asymmetric threats under the prevalent precarious internal and external security environment.”

What Admiral Said?

The chief of Naval Staff, Admiral Zakaullah visited Makran Coast Naval unit on Saturday followed by a visit to Jinnah naval base in Ormara and a unit in Pasni, Gwadar and Jiwani to witness the operational readiness of these units.

What he addressed?

The naval chief during his visit to coastal areas of Baluchistan, he oversee all business affairs and operations of the port and was given a detailed briefing on the security risks linked to the port.  The chief said that Gwadar was cardinal to China and Pakistan Economic Corridor and the routes connecting the countries via sea. Gwadar will connect the region with outer world. It is the great responsibility of naval forces to provide peaceful environment for the business operations at the port. He further said that Pakistan Navy is fully ready to achieve the purposes of SEASPARK15 program. 

What China Said?

China has formally taken over the port operations and all business affairs of the port. Chinese foreign ministry spokesman Hong Lei says that this initiative of development by both governments of China and Pakistan will go very long and continue to promote development in the region. He said, "Chinese enterprise's appointment at the management of the Gwadar Port is a commercial program under economic and trade cooperation of China and Pakistan, and a part of the two countries' friendly and mutually beneficial cooperation".

Is Gwadar that crucial?

Yes certainly the Port of Gwadar is a charm and best business location on western coasts of Pakistan.
 You can find out affordable sea cargo from UK to Pakistan online to send your parcels.
 It is a deep sea port that sits very next to the Strait of Hormuz which is the gateway to the world of oil in the region.  China plans to make Gwadar a transportation Hub under the China Pakistan Economic Corridor scheme. China is working on a 3000 km long railway track from Gwadar to Xinjiang in western China.

Pharma shippers consider sea freight - but insist it's not all about price

 Pharmaceutical shippers have insisted airlines to become more trustworthy, in the Life Science and Pharmaceuticals conference in London.

According to Global category leader for AstraZeneca, Julian Wann, that by the completion of next year the pharma company would be transfer 70 percent of its volume by sea, while this present  year it was only 44percent. According to Julian Wann air freight is 78 percent more expensive per kilo  as compared to sea cargo. He further stated that the density of the air cargo supply chain meant that in some situations air freight is considered risky and unsecure. The value is in having the right product at the right place at the right time and the highest percentage of our complications come from air cargo.

Security Measures

Security is very much important for us. If anything happens erroneously, trusting on insurance is not actually the topic. Last year, AstraZeneca changed the way it organizes its supply chain, he stated about  to emphasis on the subjects of velocity, visibility and variability. Price is not the matter of debate. Sea cargo gives trustworthiness that we didn’t have before. According to him velocity does not mean, let’s fly it everywhere. If we become more well-organized we can plan sea freight. There is no loss, and it helps us drive velocity.

Is collaboration needed with airlines?

 Julian Wann  also emphasized on  close collaboration with airlines. This is a chance for the airline industry to get closer to forwarders. Forwarders are working very hard to support us. Airlines, answered that some forwarders did always not give them adequate delivery information. According to a senior manager for special cargo at IATA Andrea Gruber, it was upon the transporter and the forwarder to bring the related parties together. Historically, airlines haven’t wanted to approach the shipper. But the ground handler also needs to be involved and the freight forwarder needs to get the right people together.

What AstraZeneca believes?

According to another airline AstraZeneca was recognized as a general cargo shipper and asked whether more excursions happened when transporters did not pay for the specialized pharmaceutical products presented by the airlines.

Mr Wann answered that the company did use some specialized products, but questioned the paying for the extra cost every time.

The pharma services don’t always give us the security we would like. We don’t always have to spend that. We can get right without it and we want certainty for that additional cost.

DHL connects five major Asian countries via Road

DHL’s united road freight network between Asian countries will be profitable for future economic initiatives to stimulate trade.

DHL Global Forwarding is providing  air, sea and road freight services in Europe and Asia. DHL has turned out  a united road freight network that connects five Asian cities that are Singapore, Penang, Bangkok, Hanoi and Shenzhen. This road freight service between five cities of Asia hits the speed of road freight growth in Asia, which is estimated at an expected compound annual growth rate of 8.3 percent from 2014-2019 and anticipated to move the sector to a value of US$822 billion  by the end of 2019.

Road freight service is more rapid than other modes of transportation 

Road freight is a good alternative then other shipping methods. Road freight service is  providing a more profitable alternative than air and sea freight. Moreover, the shipping  time for sea freight between Shenzhen and Bangkok takes thirteen days while the road freight service  only takes five days. The road freight service takes less time as compared to sea freight and it is less expensive than sea and air freight. There are regular departures from five cities and an example of the transportation time is as, shipping time from Singapore to Penang is one day, Bangkok to Hanoi is three days, Shenzhen to Hanoi two days, Shenzhen to Bangkok five days and from Penang to Shenzhen six days. According to CEO, DHL Asia Kelvin Leung that the company is confident that the trade in Asia Pacific region will continue to increase and the road freight network is also ready to help in the expansion of trade.   

DHL’s integrated road freight network will be profitable and trade stimulating

DHL’s road freight service is a profitable service and also helpful in stimulating the economy.

This  road freight network will be useful for coming financial initiatives supporting trade, having laid the foundation that already connects crucial Asian markets. For example, the ASEAN Economic Community (AEC) aims to build a single ASEAN market. The plan covers cross-border collaboration in many areas comprising capacity building, improved groundwork and communication connectivity, and the improvement of electronic dealings. For good results, AEC will direct a prosperous ASEAN region among the free movement of imports, services and investment. According to CEO, DHL Global Forwarding ASEAN and South Asia Thomas Tieber, that Thailand has a striking chance to make itself as a strong logistic hub in ASEAN.