Being set apart with inherent deep sea port, mother vessels from all over the world will be able to load and unload their goods near the coast. As a result, the shipping cost of the businesses will be curtailed which will ensure cost reduction and profit expansion. Also, there is about 4.5 km channel which is drenched at regular intervals to keep it in proper condition.
As location of Gwadar is prime and central, it can be extensively used for trans-shipment. This aspect of Gwadar will ensure that cost of businesses are curtailed which is higher on other ports such as in Dubai. With accessibility to Gwadar port, average saving cost per business transaction will be US$100,000 and even trans-shipment will be avoided by availing the port services.
China being the leading exporter of the world can utilize Gwadar port for its operations. Understanding the lucrativeness of the region, China Overseas Port Holding Company (COPHC) has entered into an agreement with Government of Pakistan and the initiative is known as China-Pakistan Economic Corridor (CPEC). COPHC has invested US$60 billion in Gwadar project, it wants to reap its fruits and also decrease road distance by 40%.
Additionally, the Chinese people want to reduce dependence on South China Sea and Sea of Malacca routes – Gwadar route will provide them an alternate and shorter route for imports which are done from Middle East – it will cut down transit times and shipping cost.
At present, sea route to China has roughly distance of 12,000 km; while, distance between Xing Jiang and Gwadar Port is 3,000 km and 3,500 km from Xinjiang to eastern side of China. Overall, Chinese exports and imports to Europe, Africa and Middle East will require less shipment distance and time once Gwadar Port starts its services.
Also, Central Asian Republics have shown interest in the port pact as transit time to Kyrgyzstan and Kazakhstan will be reduced.