1800 Km Long Rail Link Planned to Connect China and Pakistan

China has funded a study to build an international rail link from the city of Kashgar in the Xinjiang Uygur autonomous region in Western China to Pakistan's deep-sea Gwadar Port on the Arabian Sea, according to Zhang Chunlin, director of Xinjiang's regional development and reform commission.

"The 1,800-kilometer China-Pakistan railway is planned to also pass through Pakistan's capital of Islamabad and Karachi," Zhang Chunlin said at the two-day International Seminar on the Silk Road Economic Belt in Urumqi, Xinjiang's capital, according to China Daily. "Although the cost of constructing the railway is expected to be high due to the hostile environment and complicated geographic conditions, the study of the project has already started," Zhang said. "China and Pakistan will co-fund the railway construction. Building oil and gas pipelines between Gwadar Port and China is also on the agenda," Zhang added.

Source: China Daily


The Pak-China link announcement was part of the discussion on China's broader effort to revive the historic Silk Route by building three main corridors through southern, central and northern Xinjiang to connect China with Russia, Europe and Pakistan. The Silk Road Economic Belt International seminar which concluded on Friday in Urumqi, Xinjinag was jointly sponsored by the State Council Information Office, China International Publishing Group (CIPG), China Academy of Social Sciences (CASS) and Xinjiang Academy of Social Sciences.

In a report last year, China's State-owned Xinhua News Agency articulated China's motivation to expand land trade in addition to building its navy to protect its sea trade. Here's what it said:

“As a global economic power, China has a tremendous number of economic sea lanes to protect. China is justified to develop its military capabilities to safeguard its sovereignty and protect its vast interests around the world."

The Xinhua report has for the first time shed light on China's growing concerns with US pivot to Asia which could threaten China's international trade and its economic lifeline of energy and other natural resources it needs to sustain and grow its economy. This concern has been further reinforced by the following:

1. Frequent US statements to "check" China's rise.  For example, former US Defense Secretary Leon Panetta said in a 2011 address to the Naval Postgraduate School in California: "We try everything we can to cooperate with these rising powers and to work with them, but to make sure at the same time that they do not threaten stability in the world, to be able to project our power, to be able to say to the world that we continue to be a force to be reckoned with." He added that "we continue to confront rising powers in the world - China, India, Brazil, Russia, countries that we need to cooperate with. We need to hopefully work with. But in the end, we also need to make sure do not threaten the stability of the world."

Source: The Guardian


2. Chinese strategists see a long chain of islands from Japan in the north, all the way down to Australia, all United States allies, all potential controlling chokepoints that could  block Chinese sea lanes and cripple its economy, business and industry.



Karakoram Highway-World's Highest Paved International Road at 15000 ft.


Chinese Premier's emphasis on "connectivity and maritime sectors" and "China-Pakistan economic corridor project" is mainly driven by their paranoia about the US intentions to "check China's rise" It is intended to establish greater maritime presence at Gwadar, located close to the strategic Strait of Hormuz, and  to build land routes (motorways, rail links, pipelines)  from the Persian Gulf through Pakistan to Western China. This is China's insurance to continue trade with West Asia and the Middle East in case of hostilities with the United States and its allies in Asia.

Pakistan's Gawadar Port- located 400 Km from the Strait of Hormuz

As to the benefits for Pakistanis, expanded trade and the Chinese investment in "connectivity and maritime sectors" and "China-Pakistan economic corridor project" will help build infrastructure, stimulate Pakistan's economy and create millions of badly needed jobs.

Clearly, China-Pakistan ties have now become much more strategic than the US-Pakistan ties, particularly since 2011 because, as American Journalist Mark Mazzetti of New York Times put it, the  Obama administration's heavy handed policies "turned Pakistan against the United States". A similar view is offered by a former State Department official Vali Nasr in his book "The Dispensable Nation".

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Comments

Riaz Haq said…
Pakistan-China connectivity plans include high-speed fiber-optic connections as well.

With this new link, Pakistan is going to enjoy the redundant internet voice and data connectivity through China. Country is currently severed with spurs through undersea cables namely SEA-ME-WE 3&4 and IMEWE.

This dependency is not only a risk but also entails security concerns, noted APP. The voice/data and internet traffic can be monitored and disturbed easily. To offset such a threat, through this project, a link will be created between Pakistan and Trans-Asia Europe (TAE) cable in China, which would enable both Pakistan and China to have alternative routes for their international telecom traffic,” said the report citing its source.

http://propakistani.pk/2013/08/05/pak-china-optic-fiber-link-to-get-completed-in-2-years-for-44-million/

The elites of both countries have termed Pakistan-China Economic Corridor as “future of the world,” as almost 3 billion people, which is almost half of the world’s population, from China, South Asia, Central Asia could benefit from this economic corridor.

The official data provided by Pakistan’s Federal Ministry of Planning and Development showed that being one of the biggest transit trade routes in the world, it would link China to the Middle East, Central Asia, Africa and other regions and give access to the landlocked countries to the world biggest markets, India and China.

It stated that the Pakistan-China Economic Corridor would be of high economic value as about the 3 billion people at both sides of the border would be its direct beneficiary while the overall bilateral trade volume would be increased to 7 billion dollars.

The data further showed that Pakistan intends to get the greatest benefit out of this project and for that it has planned to establish industrial parks and economic zones along the Kashgar-Gwadar trade corridor.

Pakistan’s central government’s seriousness to get maximum benefits from the Pakistan-China Economic Corridor can be judged with the fact that it has already approved the projects worth 52 billion to be started in the economic zones.

Dr. Zafar Mehmod, a prominent economist, opined that the poverty rate would be reduced to the minimum while the unemployment would almost come to an end.

Talking about the economic corridor, Javed Shahzad Malik, the high official of Ministry of Kashmir Affairs and Gilgit-Baltistan, said the dream of building up economic corridor is being translated into reality and work is under way to upgrade KKH, motorways, and railway lines, fiber optic, and oil and gas pipe lines.

He said a number of tunnels with overall length of 200 km would be constructed on different locations to maintain the vehicular speed on KKH at 80 km per hour.

Speaking with a Kabul-based Journalist, writer and political activist who worked as an advisor in the Hamid Karzai government, Azam Beg Tajik hoped that such a trade route would become a profitable hub and economic activity center, serving as a lifeline to the economy of the country in the near future.

Given the future economic prospects highlighted by the experts, government officials and local people, it is expected the Pakistan-China Economic Corridor would not only help boost economic activities but also bring the socioeconomic conditions and living standard in this region at par with other developed regions of the world.

http://www.sharnoffsglobalviews.com/pakistan-china-economy-315/
Riaz Haq said…
The Executive Committee of National Economic Council on Thursday approved a dozen development schemes worth Rs428 billion including projects related to China-Pakistan Economic Corridor and raising of Balochistan Constibulary.
Under the chair of Finance Minister Ishaq Dar, the ECNEC also approved the construction of Karachi-Multan-Lahore Motorway (KLM) Project’s Sukkur-Multan leg. The approval came just days before a Pakistani delegation is set to leave for China to discuss financing issues of infrastructure and energy sector projects that will be completed under the economic corridor project.
The 387 kilometer long Sukkur-Multan project will be completed at a cost of Rs259.4 billion. 90% of the project cost will be funded by China, according to a handout issued by Ministry of Finance after the ECNEC meeting. The remaining cost of the project will come from PSDP.
The project is expected to be completed by October 2017 and will be executed by National Highway Authority. The project envisages construction of 387 km long, six lanes, Sukkur-Multan section and is part of 1,148 km Karachi-Lahore Motorway.
The body also approved land acquisition, affected properties compensation and relocation of utilities for construction of the Motorway. This will cost Rs51 billion.
With the approval of the land acquisition and construction of a section of the Karachi-Lahore motorway, the issue of Pak-China corridor route has been settled. In order to address security concerns on the old western route through Balochistan, the government has opted for the new Eastern route despite protestations from Khyber-Pakhtunkhwa (K-P) and Balochistan parliamentarians.
The old route was along the western lines of the country but passes through some restive areas. Pakistan and China have agreed to construct the economic corridor that will give access to western parts of China to Gwadar port for international trade and secure energy supplies for the future.
Balochistan projects
The ECNEC approved a project for raising the Balochistan Constabulary at a cost of Rs5.2 billion. The project is aimed at assisting police and district administration in maintaining law and order in the crisis hit province.
The project will see a 10,000 strong Balochistan Constabulary for which 6,000 personnel will be recruited. 4,000 reserve police personnel will be merged into this force to raise it to 10,000 members.
The constabulary will also be responsible for ensuring security along the economic corridor.
Gwadar free trade zone
The body also approved acquisition of land for establishment of Free Trade Zone in Gwadar at a cost of Rs6.5 billion.
The project aims to acquire 2,281 acres of land for establishing a free trade zone at Gwadar Port. 1,627 acres of the required land would be acquired from private land owners.
The meeting also approved the widening and improvement of the 250 km long Kalat-Quetta-Chaman Road section of National Highway N-25 with a revised cost of Rs 19.2 billion.

http://tribune.com.pk/story/730784/ecnec-approves-construction-of-387-km-leg-of-karachi-lahore-motorway/
Riaz Haq said…
Pakistan is eying the Beijing’s proposed huge investment of about $40 billion over the next eight years in the country’s energy, water, coal, roads and other infrastructure projects.

According to the Board of Investment, a sizeable growth will be recorded in the foreign direct investment inflows from the next year’s second half.

The BOI has also established facilitation centers in Islamabad and other provincial capitals to assist small entrepreneurs in setting up their businesses valued less than Rs100 million, Dr Miftah Ismail, special assistant to the prime minister and chairman of BOI, told the media persons on Tuesday.

These offices will facilitate small and medium enterprises through one-window operation in obtaining utility connections and government registration approvals at federal, provincial and district levels. These types of legal and other administrative approval always take time.

“We are working with the provinces on simplification of their laws regarding businesses establishment, as the government wants to encourage business and creation of jobs,” said the chairman.

Business persons who want to establish their businesses will have to first apply to the head office and if they require support in provinces in taking approvals or permits, “Our directors and other officers will fully facilitate them.

This facility is available to investors and entrepreneurs with capital of Rs100 million or less,” he said.

Dr Ismail said the investment to gross domestic product ratio decreased substantially to 14 percent in 2013-14 from 19.2 percent in 2007-08 because of lowering local and foreign investments.

The fixed investment to GDP ratio was recorded at 12.4 percent as against 13 percent last year.

Pakistan’s ranking in the World Bank’s ‘Ease of Doing Business’ and on the ‘Global Competitiveness’ has been deteriorating over the last several years.

In ease of doing business, the country’s rank was at 61, which gradually slid to 110 in 2014.

The investment board chief said the board has developed an implementation plan to simplify the procedures and reduce time/cost for investment facilitation and business improvement.

For that, the board is consulting with the finance ministry, Federal Board of Revenue, Securities and Exchange Commission of Pakistan and Employees’ Old-age Benefits Institution.

Besides, said the PM special assistant, the board is focusing on improvement of the five indicators in ease of doing business index, including starting a business, dealing with construction permit, tax payment, trading across borders and enforcing contract.

“We will try to simplify them as much as possible to facilitate investors and save their time.”

He said business regulatory environment is particularly relevant for small and medium enterprises – the key driver of competition, economic growth and job creation, especially in developing countries like Pakistan.

SMEs employ some 80 percent of non-agricultural labor force and contribute about 40 percent towards the gross domestic product.

http://www.thenews.com.pk/Todays-News-3-260596-Pakistan-eyeing-$40-billion-investment-from-China
Riaz Haq said…
ISLAMABAD: Federal Minister for Planning, Development and Reforms, Ahsan Iqbal Tuesday said that Energy projects of 16600 Mega Watt (MW) signed under Pak-China Economic Corridor during recent visit of the Prime Minister to China would help overcome energy crisis in the country.
Addressing a press conference here, the minister said that the energy projects would be completed in two phases.
"During the first phase the energy projects of 10,400 MW electricity worth of $15.5 will be completed while in the second phase different projects of 6600 MW electricity will be concluded ", he said adding development of energy infrastructure and up-gradation of system of transmission lines was also included in the agreements.
Ahsan Iqbal said that energy projects of 9000 MW would be completed by 2018 which would mean that the government would be able to eliminate power load-shedding in the country during its tenure.
The minister said that coal-based power plants would generate 7500 MW and the cost per unit of electricity would be about 10 cents which would be far cheaper than that of oil.
He said that under the Corridor, 1000 MW of the largest solar park would also be established in Cholistan while hydal based energy projects would be of 1600 MW.
Giving details about Thar Coal Projects, the minister said that in the first phase two projects of 2000 MW would be developed from Thar Coal while under the agreements with China overall 6600 MW Thar Coal projects would be completed
He said that a package of $650 million was also included in the agreements for development of Gwadar sea port and airport.
Iqbal further said that 1736 kilometers of railway track would be upgraded which would not only help to ease out transportation system of goods and coal but it would also help improving transportation facility for the passengers.
The Minister strongly condemned Pakistan Tehreek-e-Insaf (PTI) Imran Khan's statement against Chinese development assistance to Pakistan under "China-Pakistan Economic Corridor" and said that Pakistan and China are closest friends and enjoy time tested all weather friendship.
"At a time when international investors were shying away from Pakistan due to security environment in the region, decision of Chinese and Pakistani leadership during PM Nawaz Sharif's visit to Beijing to take Pak-China relations to new heights in economic field through China Pakistan Economic Corridor Project is a milestone", he added.
The most critical energy and infrastructure sectors related projects will infuse new life into Pakistan's economy, he added.
He said the projects are in IPP mode as investment projects and rejected Imran Khan's assertion that these projects were being financed through borrowing.
Iqbal said that these projects were coming under the energy policy which was open for all investors from any part of the world.

http://www.brecorder.com/top-news/108-pakistan-top-news/204294-16600-mw-projects-under-pak-china-economic-corridor-to-help-overcome-energy-crisis-ahsan.html
Riaz Haq said…
New #railway tracks to be laid from Kotri to Attock in #Pakistan under #CPEC- http://www.khaleejtimes.com/international/pakistan/new-railway-tracks-to-be-laid-under-cpec …

Some 1,254 kilometres of railway track from Kotri to Attock City via Dadu, Larkana, Jacobabad, DG Khan, Bhakkar, Kundian will also be upgraded.
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Islamabad: Pakistan has planned a major installation and upgradation of railway tracks under the China-Pakistan Economic Corridor, Radio Pakistan reported on Sunday.

Under the plan, new railway tracks will be laid from Gwadar to Quetta and Jacobabad via Besima.

Five hundred and sixty kilometres of track will be laid from Bostan to Kotla Jam on main line-II via Zhob and Dera Ismail Khan, while 682km of track will be laid from Havelian to Khunjrab, the state-run broadcaster's website said.

Upgradation of 1,872km of railway track from Karachi to Peshawar via Kotri, Multan, Lahore, and Rawalpindi (including Taxila-Havelian) - along with dualisation of track from Shahdara to Peshawar - will also be carried out.

Some 1,254 kilometres of railway track from Kotri to Attock City via Dadu, Larkana, Jacobabad, DG Khan, Bhakkar, Kundian will also be upgraded.

Further, the government on Saturday gave its final go-ahead to four mega projects, including two road construction schemes under the China-Pakistan Economic Corridor (CPEC) at a revised cost of Rs862 billion - Rs214 billion or one-third higher than original estimates.

The Executive Committee of National Economic Council (Ecnec) approved the 969-megawatt Neelum Jhelum Hydropower project as well as CPEC's 118-kilometre-long Havelian-Thakot and 392-km Sukkur-Multan sections of roads. It also approved the National Highway N-70 East-West Road Improvement Project.
Riaz Haq said…
#Karachi-#Peshawar railway line being upgraded under #CPEC #Pakistan #China

http://www.dailytimes.com.pk/national/22-Jan-2016/karachi-peshawar-railway-line-being-upgraded-under-cpec …

Feasibility study for rehabilitation and up-gradation of main railway line from Karachi to Peshawar is in progress under China Pakistan Economic Corridor (CPEC) project.

Ministry of Railways sources said the project will be completed by 2020 with the help of the Chinese government. On the completion of CPEC project, speed on main line will be increased from 105 KMPH to 160 KMPH.

Apart from this, five years plan is also being prepared for rehabilitation and improvement of railways track on the network.
Riaz Haq said…
#China-#Pakistan railroad will help curb extremism: Ex-Pakistan PM Shaukat Aziz. #CPEC

http://www.cnbc.com/2016/05/18/china-pakistan-railroad-will-help-curb-extremism-ex-pakistan-pm.html

The China Pakistan Economic Corridor (CPEC), a railroad which will traverse western China through Pakistan, will help job creation as well as help to curb terrorism as people grow more prosperous, Pakistan's former prime minister told CNBC on Wednesday.

The $46B deal agreed upon between China and Pakistan will allow China to avoid its current maritime sea routes to bring products into the Middle East and Europe.

It will develop connectivity and create economic activity in Pakistan, former Pakistani Prime Minister Shaukat Aziz said.

"When you build a road or a highway through an area where there is none, you create economic activity, you create jobs, secondly new cities come up along that route , thirdly you have industrial estates coming so a lot of job creation takes place," said Aziz.

Despite a warning from the Pentagon that China is looking to set up a naval base in the country, the Pakistani army chief visited Beijing earlier this week to further discuss the project and the Pakistani army's involvement.

The Pakistani army will provide 15,000 special security forces to protect the investment in Pakistan, which has suffered greatly over the years due to security and terrorism issue.

"Whenever you have empty bellies, people get more vulnerable and subject to extreme behavior. If you create economic activity and give them a reason to live, if you give them a better tomorrow than yesterday, people tend to be more peaceful," said Aziz.

"We have seen over the years that in areas that have grown fast and where economic growth is strong, extremism and terrorism reduces," Aziz told CNBC.

"This is a serious initiative and we will do all what it takes to provide security and leverage this linkage between the warm waters of the Arabian sea all the way up to China."
Riaz Haq said…
#Pakistan to launch $US 8.2bn upgrading #railway track project. International Railway Journal #CPEC http://www.railjournal.com/index.php/main-line/pakistan-to-launch-dolus-82bn-line-upgrading-project.html?channel=524 … via @railjournal

THE Pakistan government has approved a $US 8.2bn project to upgrade the 1872km Karachi - Peshawar main line by 2021, 85% of which will be funded by a concessionary loan from China the terms of which will now be negotiated.


The project is part of the $US 46bn China-Pakistan Economic Corridor, a framework agreement for which was signed in April 2015 during a visit to Pakistan by China's president Mr Xi Jinping.



The work will be carried out in two phases, with the first due for completion in December 2017 and the second in 2021. The project will include track relaying, and upgrading of bridges, tunnels, and culverts, with the objective of increasing the axleload from 22.8 tonnes to 25 tonnes. A dry port will also be constructed at Havelian and the 55km line from there to Taxila will be upgraded.

Pakistan Railways currently has a 4% share of national traffic and the government wants to increase this to at least 25% by 2025.
Riaz Haq said…
#Pakistan Railways poised to get massive funding from #CPEC and #CAREC. #China #CentralAsia http://www.pakistantoday.com.pk/?p=559603 via @ePakistanToday

After decades of neglect, a silver lining is on the horizon for Pakistan Railways as it may be able to attract multi-billion dollar investment for the upgradation as well as deployment of new railway infrastructure across the country under two regional economic unions, the Central Asia Regional Economic Cooperation (CAREC) and China Pakistan Economic Corridor (CPEC), to link Central Asia and China with Pakistani ports of Karachi and Gwadar.

An official source said that the Asian Development Bank (ADB) has started the process to assess the financial needs for upgradation of 461 km main line (ML-1) between Lahore and Peshawar, under its CAREC Railway Connectivity Investment Programme. The financing is likely to start flowing form next year.

The Ministry of Railways has already shared plans, under early harvest projects by 2020, to upgrade Karachi-Peshawar main line (ML-1) and extension of ML-2 from Jacobabad to Gwadar via Basima to both CAREC and CPEC. If financing was available, the projects would be completed in relatively short time as the Pakistan Railways has technical expertise to execute the projects, he added.

ADB will be providing multi-tranche financing facility (MFF) to make the railway system more efficient and competitive. Improved railway corridor of Lahore-Peshawar will improve Pakistan Railways’ institutional efficiency. Financial assistance will also be provided for Railways’ modernization, IT-based accounting system and transforming and migrating accounting data into the new accounting system.

Under the plan, 411 km railway track between Lahore-Peshawar section of ML-1 will be upgraded and dualised together with new signaling and telecommunications system, including power supply for these systems, and upgraded passenger facilities at Lahore, Rawalpindi, and Peshawar stations. A 53-km section in the hilly area from Kaluwal to Pindora will have to be realigned and dualised. Except for realignment sections in the hilly tract, it is likely that all the work for rehabilitation and upgradation of the physical infrastructure will be limited to the PR-owned right of way.

Except for Pakistan, railways in all CAREC countries have more freight carriers than passenger tariff. CAREC railways have increased freight traffic volumes which shows the large potential for PR to freight forward to and from CAREC countries. Domestic market is large in Pakistan, Uzbekistan, Kazakhstan and China.

In the past, the railways infrastructure plans always received a cold shoulder from the government, but now the situation has changed as multilateral institutions are interested in linking Pakistani ports with China and Central Asia. Now the government wants to attract investment in railways infrastructure and China is asked to finance upgradation of strategically located ML-1 which connects major population centers in three provinces.

Under CPEC, Pakistan has shared Phase-I (Early Harvest Projects) upgradation of ML-1 (Karachi-Peshawar and Taxila to Havelian) and construction of New Dryport at Havelian (Buldher). In medium term, Phase-II upgradation of ML-2 and extension of ML-2 (Gwadar to Jacobabad via Basima) is proposed. The long term Phase-III seeks establishment of Havelian-Khunjrab-Kashghar rail link.

The source said Pakistan has shared plans to link the Gwadar port Kandahar, Kabul and Dushanbe. The second plan is to link Gwadar with Quetta and onwards to China. He said Pakistan Railways has prepared plans on rail link between Gwadar port and Mastung, Chaman to Kandahar rail link and rail lines between Kandahar and the Tajik border are also planned.
Riaz Haq said…
CPEC to strengthen CAREC by expanding north-south corridor:


The primary north-south transport corridor in Pakistan runs from Torkham on the northern border with Afghanistan and passes through primary production and population centres such as Peshawar, Islamabad, Faisalabad, Multan, and Khanewal, before reaching the port city of Karachi in the south. The corridor serves the economy of an area that accounts for 80 percent to 85 percent of the country’s GDP and in the regional context, forms an integral part of the Central Asia Regional Economic Cooperation (CAREC) corridors 5 and 6 after Pakistan's accession to the CAREC Programme in 2010.

------


The M-4 Motorway, linking Faisalabad with Khanewal, would be completed by July 2018, said National Highway Authority (NHA) member Mansoor Ahmed Sirohey on Friday.

He told journalists that the Asian Development Bank (ADB) is the leading financer in M-4 Motorway, as the bank disbursed $170 million (77 percent share of the project) in 2009 for construction of a 58km four-lane motorway M-4, connecting Faisalabad to Gojra (section I). This section was completed in December 2014.

Similarly, the ADB would provide 56.15 percent share of the funding of the section II of the M-4, which will construct the 62km four-lane access controlled motorway connecting Gojra and Shorkot. Meanwhile, government of the United Kingdom would provide grant of 29.02 percent and Pakistan would release share of 14.83 percent. The project is expected to complete by 2018, he added.

Sirohey said that contract for section-III of the motorway linking Shorkot to Khanewal has been signed and construction is expected to commence in December 2016. The ADB noted that M-4 Motorway in Punjab, linking Faisalabad with Khanewal, will cut travel time and support the government's broader goal of improved investment and trade flows along the country's vital north-south corridor route. Once fully completed, the M-4 Motorway will provide a faster, safer, more cost-effective north-south route to the currently overburdened national highway 5 and other existing narrow and congested routes.

http://nation.com.pk/business/19-Nov-2016/project-to-be-completed-in-2018-nha-member
Riaz Haq said…
#GE Transportation in #Eerie #Pennsylvania to build 20 #locomotives for #Pakistan, creating new jobs for #Americans

http://www.goerie.com/news/20170609/ge-transportation-to-build-20-locomotives-for-pakistan

GE Transportation workers in Erie will have more work to do, thanks to a new order for 20 locomotives from Pakistan Railways.

Top NewsClick Now and Read Later.


This latest order, announced this week, represents an expansion of a 2015 order for 55 Evolution series locomotives, 32 of which are already in service.


At about 2,000 horsepower, the locomotives being built for Pakistan are lighter and less powerful than the 4,600 horsepower locomotives the company builds for North American customers.

“These lighter-weight locomotives,” according to a statement from GE Transportation, “are designed to better maneuver difficult access roads.”

For Pakistan, the purchase is part of a strategic move to increase the percentage of freight moved by rail from 4 percent to 20 percent in the next 10 years.

For the Erie plant, which has been building about two locomotives per week, the order represents a small but important boost that could represent a certain amount of security at a plant where about 1,500 jobs were cut in the first half of 2016.

“Any work is good news,” said Scott Slawson, president of Local 506 of the United Electrical, Radio and Machine Workers at GE Transportation. “We are in a downturn that we are hoping to turn around.”

There have been some positive signs lately.

Slawson said a handful of people on the layoff list have been called back to work recently. While some of those employees will be taking the jobs of workers who have retired, Slawson said a number of others will provide labor in areas of specific need within the company.


Workers in Erie recently wrapped up work on the first two locomotives in an order of 1,000 locomotives for Indian Railways. The first 40 locomotives will be built in Erie, followed by 60 so-called kits that will be built in Erie and then shipped to India for final assembly. The remaining 900 locomotives will be built in India over the next 10 years.

Slawson said the employment situation at the Erie plant, which builds locomotives for the international market, might be substantially different if the Indian Railways order, the largest in the company’s history, was to be built exclusively in Erie.

“That would have been huge,” he said.
Riaz Haq said…
The spatial competition between containerised rail and sea transport in Eurasia

https://www.nature.com/articles/s41599-019-0334-6

In the future, the BRI will be significant to the integration of economic trade in Eurasia, following the premise that land and sea transport should find a spatial balance. In fact, analysis of the competition and cooperation between land and sea transport can also be of theoretical significance for transport geography. This paper presents a LSTSB model based on the conceptualised Eurasia and simulates different land–sea transport scenarios. We then identify the transport balance lines by applying the model to Eurasia and present the partition of land and sea transport dominated areas in line with the theories of geopolitics.

The main insights are as follows:

Four scenarios based on different locations of destination, different freight costs, different values of a container’s goods and different speeds of transport are simulated using the theoretical model. They show that these basic factors influence the spatial balance lines of transportation. The results indicate that land transport is relatively competitive with sea transport but that this depends on different factors. Land transport may be undervalued at present due to long-term cooperation behaviour between governments or enterprises with maritime companies.

The case study shows that in terms of freight costs, maritime transport has an obvious advantage in Eurasia. The transport spatial balance line divides the Eurasian continent into a land and sea transport competitive pattern with an area ratio of 1:2. However, this ratio changes to 1:1 when we take time costs into consideration. Results show that the Economic Belt on road has economic feasibility and rationality.

Furthermore, the spatially competitive pattern of land–sea transport in Eurasia is highly consistent with geopolitical theories. This paper presents a partition of transport areas based on the calculation of balance lines, showing the land transport preferred area, the sea transport preferred area and the land–sea transport indifference area. The partition shows that the China–Russia–EU region, located in the land transport preferred area and the land–sea transport indifference area, is the key pivot area of integration influencing the current economic geographic imbalance in Eurasia. Further, it can serve as the analytic basis underpinning the necessity of increasing cooperation between China and the EU under the BRI, which is in the land–sea indifference area. Thus, the LSTSB model can bring a new perspective to the discussion of the spatial pattern of geopolitics and geo-economics in Eurasia.
Riaz Haq said…
China, Pakistan Agree to Launch $10 Billion Railroad Project
Two countries plan to upgrade line from Karachi to Peshawar
Pakistan officials have said they expect funding from China
By Faseeh Mangi


https://www.bloomberg.com/news/articles/2022-11-02/china-pakistan-agree-to-launch-10-billion-railroad-project

Chinese President Xi Jinping and Pakistani Prime Minister Shehbaz Sharif agreed in a meeting in Beijing to launch a high-speed rail project that could cost $9.85 billion, a move that comes as the world’s No. 2 economy moves to slow some of its lending due to growth concerns.

The two nations agreed to get started on the Main Line-1, according to a statement from Sharif’s office, which described it as “a project of strategic importance.”

That project involves upgrading a 1,163-mile, colonial-era track from Karachi to Peshawar to carry high-speed trains. Earlier this week, Pakistan formally approved the project, which has been in discussion for years, without saying where the funding would come from or providing technical details.

Officials in Pakistan have previously said they expected to get loans from China for the upgrade.

The US has in the past criticized China for using what it calls “debt diplomacy” to make developing nations more dependent on Beijing. Still, earlier this year China delayed a bailout for Pakistan as its debt soared, and it has been scaling back lending in Africa as its economy slows.

About 30% of Pakistan’s foreign debt is owed to China, including state-owned commercial banks, the International Monetary Fund said in a report in September.

In June, Moody’s Investors Service downgraded its outlook on Pakistan to negative from stable, citing financial concerns.

See: Xi Kicks Off Third Term With Flurry of Diplomatic Activity

In their talks, Xi and Sharif agreed to finalize details on an inner-city rail line in Karachi. The Chinese leader also said his nation would provide 500 million yuan ($68.7 million) to Pakistan to help it rebuild after flooding over the summer that displaced more than half a million people.

Also Wednesday, the two countries’ central banks signed a memorandum of cooperation on a yuan clearing in Pakistan, the People’s Bank of China said in a statement. It didn’t give more details.

Sharif is wrapping up a two-day visit to Beijing. China is hosting a flurry of foreign leaders this week, as Xi kicks off a norm-busting third term during which he’s vowed to increase his nation’s global influence.

Vietnam’s Communist Party chief Nguyen Phu Trong became the first foreign leader to meet Xi since the Chinese president removed rivals and installed loyalists at a leadership reshuffle last month.

Xi and his top officials are then expected to hold talks in the capital with German Chancellor Olaf Scholz and Tanzanian President Samia Suluhu Hassan. Later this month, he will likely travel to Indonesia and Thailand for major summits attended by global leaders including President Joe Biden and Russia’s Vladimir Putin.
Riaz Haq said…
Pakistan taps Chinese credit for railway upgrade despite debt crisis
Islamabad says $10bn revamp of colonial-era line is essential even as it faces risk of default and forex reserves plunge

https://www.ft.com/content/44c26d5c-97d2-4181-b5a4-9ef66ce776db

Ahsan Iqbal, Pakistan’s planning minister, said the ML1 upgrade was vital to keep trains running and an example of the transformative work that Chinese credit had made possible.

“If we do not undertake this project, in a couple of years Pakistan will lose its railway logistics,” Iqbal told the Financial Times.

“The whole railway system will break down, this main line will break down. It will be very risky to run commercial operations on this track. It is no longer a choice. It is an imperative.”


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Iqbal, who oversees Pakistan’s involvement in the Belt and Road Initiative, China’s international infrastructure scheme, said it would take six to nine years to complete the ML1 upgrade. The work will include replacing track, modernising signalling, converting level crossings into underpasses or flyovers and building fences to stop cattle crossing the line.

The planning minister said the project would proceed in phases “to make it more manageable”, with an initial cost of $3bn. The loan from China would be repayable over 20 to 25 years and would be “concessional”, he said, without providing further details.

Chinese lending to Pakistan goes back years, part of an effort to forge economic and military ties that will help to counter their mutual rival India. The ML1 upgrade is part of the China-Pakistan Economic Corridor, a BRI centrepiece with an estimated total cost of $60bn.

The CPEC also includes Chinese development of a deep-sea port at Gwadar in south-western Pakistan, among other projects. Beijing is separately supplying Pakistan’s military with eight submarines and advanced J-10 C fighter jets.

A western diplomat in Islamabad said that for such projects to have continued even as Beijing saw growing financial distress in BRI recipient countries pointed to the importance it put on ties with Pakistan.

“Even if the rest [of BRI] lags behind, China wants to stay the course with Pakistan,” the diplomat said, adding that the relationship had “important military aspects developed over the long term”.

The projects — and Chinese financing — have also stoked domestic tensions. Police in Gwadar last month imposed emergency measures and dismantled a protest camp that had obstructed operations at the port with demands, among others, for Chinese nationals to leave.


Projects such as ML1 have also fuelled analyst concerns over whether excessive Chinese lending is exacerbating strains on Pakistan’s precarious finances. Chinese state lenders are together among the largest creditors to Islamabad, accounting for about $30bn of its outstanding debt.

----
Sakib Sherani of advisory firm Macro Economic Insights said it was unfair to single out China’s role in Pakistan’s debt woes, with the largest repayments in the current financial year actually due to multilateral lenders.

But Chinese loans tend to carry higher interest rates than multilateral or other bilateral creditors, according to the AidData research lab at William & Mary college in the US. Chinese annual interest is typically 3-4 per cent compared with 1-2 per cent from OECD lenders, AidData said.



Even as it taps Beijing for the ML1 project, Pakistan is looking elsewhere for funds to help stabilise its shrinking reserves. The finance ministry is in talks with the IMF to secure the next tranche of a $7bn assistance programme, and has said it will approach “friendly” countries such as Saudi Arabia for more loans.

Sharif’s government is betting it can steady the economy in time for parliamentary elections that must be held before the end of this year.

Iqbal said he was confident the country would pull through. “Pakistan is facing economic [and] fiscal difficulties, but it is not in the range that it is a default economy yet. We are managing very prudently.”

Riaz Haq said…
ML-1, KCR (Karachi Circular Railway) upgrade projects to start in March

https://www.thenews.com.pk/print/1026277-ml-1-kcr-upgrade-projects-to-start-in-march

He (Ambassador Non Rong) recalled that under the CPEC, 192,000 jobs were created, 6000MW of electricity was generated, 510 km of highway was constructed and 886 km of transmission was set up, which laid a solid foundation for Pakistan’s socio-economic development. “In fact, Pakistan’s trade surplus of agricultural products is expected to exceed a record high of $1 billion in 2022,” the ambassador said.

The Chinese sources said the ML-1 is the largest infrastructure project of CPEC worth $6.86 billion. The project involves the up-gradation and dualization of ML-1 to increase the operating speed from the current 60 km/h and 105 km/h to a proposed 160 km/h. The project also involves the establishment of a dry port near Havelian. ML-1, the Karachi to Peshawar line, is one of four main railway lines in Pakistan, operated and maintained by Pakistan Railways. The line begins from Karachi City Station or Kiamari station and ends at Peshawar Cantonment Station. The total length of this railway line is 1,687 kilometers. There are 184 railway stations from Kiamari to Peshawar Cantonment on this line. The line serves as the main passenger and freight line of the country. 75 percent of the country’s cargo and passenger traffic uses the ML-1. The existing timeline for the completion of ML-1 extends to December 2024. Under the umbrella of this project, level crossing will be converted into flyovers or underpasses so that the speed can be increased by getting rid of the obstacles.

The project could not be started during the PTI government due to China’s concerns over debt repayment plan, the sources pointed out. ML-I railway line project is very important to achieve connectivity between Gwadar (Pakistan) and Kashgar (China) through a train track that will provide the easiest and safest way to transport oil between China and the Middle East, saving China travel costs. The railway line upgrade will provide faster travel facilities to the people of Pakistan and commercial benefits like bringing raw materials to the Special Economic Zone (SEZ) and faster delivery of finished goods to remote areas of the country as well Gwadar port. Another great benefit is that coal will be delivered for fuel to the power plants through the railway track, which will also generate good revenue for the railways. Due to unnecessary delays, the cost of this historic project has increased. The Imran’s PTI government failed to convince the IMF and the Chinese government to start the project. Another reason for the increase is the recent floods in Pakistan, which has destroyed the railway lines of most parts of the country. As soon as the new government was formed in April, 2022, Pakistan’s Minister for Planning Ahsan Iqbal restarted the discussion with the Chinese authorities on revival of the project.

The revived KCR operation is intended to become an inter-regional public transit system in Karachi, with an aim to connect the city centre with several industrial and commercial districts within the city and the outlying localities. In May 2017, the then government approved Rs27.9 billion ($120 million) restoration package for the KCR. However, delays and disputes with the Sindh provincial government ultimately led to cancellation of the funding. KCR would be constructed with the cost of Rs294 billion and used by 500,000 passengers/day, which would increase to 1 million in later years. KCR will have 250 modern driverless electric bullet trains, which would run 17-hours a day throughout a week. The KCR project would be run by the Sindh government through Karachi Urban Transport Corporation (KUTC) and likely to be completed by 2025.
Riaz Haq said…
#Chinese Gov't Commissioned Study: #China-#Pakistan #railway ‘worth it’ at estimated US$58 billion. It should proceed because of its #strategic significance. It has the potential to reshape #trade and #geopolitics across the Eurasian continent. #CPEC https://www.scmp.com/news/china/science/article/3218413/china-pakistan-railway-worth-it-estimated-us58-billion-study


The project connects the port city to the Kenyan capital and is part of a larger plan to link East African countries by rail. Similarly, China contributed 30 per cent of the US$4 billion funding for the Addis Ababa-Djibouti rail line in Ethiopia.
China covered 75 per cent of the Jakarta-Bandung high-speed railway’s costs of US$5.9 billion, with Indonesian state-owned enterprises providing the remainder.
But Pakistan is unable to make a similar contribution. Its GDP last year was US$370 billion – just six times the estimated cost of the project.
“Due to energy shortages, poor investment environment and fiscal deficits,


Pakistan’s economic growth rate has come under pressure,” the team said.
“In terms of railway investment and construction, Pakistan is unable to provide sufficient financial and material support and mainly relies on Chinese enterprises for investment and construction.”

One reason for the hefty cost is the mountainous and geologically complex terrain along the route. There could be technical challenges to overcome in the construction and operation of the railway, the researchers said.
The project also required supporting infrastructure – such as ports and logistics facilities – that might not be immediately available in Pakistan, they said.

The study said Pakistan’s labour policies could be unpredictable, which could potentially affect the railway’s construction and operating costs.
The team also noted that Pakistan had experienced security challenges in recent years, including in its western region where the railway will pass through. Balochistan province, for instance, has been plagued by separatist violence for decades.

This could potentially disrupt construction and operation of the railway and pose a risk to Chinese workers and investments, the researchers said.
The study also pointed out the railway’s potential impact on neighbouring countries, such as India. With each country having its own priorities and interests, there could be disagreements or delays in decision-making related to the project, it said.
Zhang’s team suggested that a build and transfer (BT) model would provide the best investment and financing strategy for the project.
They considered BT against build-operate-transfer, public-private partnerships, and the engineering, procurement, construction mode that are becoming more popular in belt and road projects.


In the BT model, a contractor would be responsible for designing, building and financing the railway, with payment on completion and ownership transferred to the government or other commissioning entity.
The researchers said BT would allow the risks associated with the railway’s construction and operation to be allocated more effectively between China and Pakistan, potentially reducing the financial risks for both parties.
By ensuring that ownership of the railway was transferred to Pakistan, BT could also help to build trust between China and Pakistan by showing China’s commitment to supporting Pakistan’s long-term economic development, they said.
China and Pakistan have been talking for years about the railway, a crucial part of the China-Pakistan Economic Corridor (CPEC) that was launched in 2015 and aims to connect Gwadar port to Xinjiang through a network of roads, railways and pipelines.
The researchers said the China-Pakistan relationship was complex, with both countries having different priorities and interests.
Negotiating agreements related to financing, labour policies, and other issues would require careful consideration of each country’s priorities and interests, they said.
In conclusion, Zhang and his team said their recommendation could help to move negotiations forward.

Riaz Haq said…
China's new Premier Li Qiang on Thursday held talks with his Pakistani counterpart Shehbaz Sharif and voiced support for cash-strapped Pakistan in maintaining financial stability, and hoped that Islamabad will continue to create a favourable environment to guarantee the safety of Chinese institutions and personnel

https://www.deccanherald.com/international/world-news-politics/chinese-premier-li-vows-support-for-cash-strapped-pakistans-financial-stability-during-talks-with-pm-sharif-1213621.html


Noting China and Pakistan are good neighbours, friends, partners and brothers, Li said that both sides should maintain high-level exchanges and promote greater progress in bilateral relations and cooperation in various fields, the state-run Xinhua Xinhua news agency reported on the telephonic talks.

Li, who assumed charge as Premier in March, also said, "China supports Pakistan in maintaining financial stability, and hopes that Pakistan will continue to create a favourable environment so as to guarantee the safety of Chinese institutions and personnel in Pakistan." He was referring to frequent terror attacks on Chinese personnel and projects in Pakistan under the China-Pakistan Economic Corridor (CPEC).

On this, Sharif added that "Pakistan will make every effort to ensure the safety of Chinese personnel, institutions and projects in Pakistan."

Sharif, who called both the countries "iron-clad brothers", also thanked China for its firm support and selfless help to the cash-starved country in safeguarding national independence and sovereignty and promoting national development. Besides political and military support, China has supported Pakistan financially, rolling over earlier loans and approving new financial packages.

Li also expressed that the two sides should support each other in the multilateral field, uphold international fairness and justice, safeguard the common interests of both countries and other developing countries, defend regional peace and security,and promote common development, the state-run agency reported. Sharif congratulated Li and reiterated Pakistan’s "unstinting" support to Beijing's “one-China” policy, as well as its stance on Tibet, Xinjiang, Hong Kong, and the South China Sea, an official statement said in Islamabad. "As all-weather partners and close friends, Pakistan appreciated China’s peaceful development as a positive factor of international peace and stability, and confident that China will continue to achieve milestones on its journey towards modernisation and rejuvenation," the Pakistani prime minister said. The Pakistani premier also thanked his Chinese counterpart for China's "principled position"on the disputed Jammu and Kashmir issue. Li, for his part, "praised Pakistan’s support for China and reaffirmed his country’s continuing support to Pakistan’s national development, sovereignty, and territorial integrity".

"China would continue to stand with Pakistan at all times," said the Chinese premier. On China's ambitious Belt and Road Initiative (BRI), Li said that both sides should work together to improve the quality of the China-Pakistan Economic Corridor (CPEC) cooperation, making it a high-quality demonstration project of the Belt and Road cooperation. This year marks the 10th anniversary of Chinese President Xi Jinping's proposal of BRI and the 10th anniversary of the launch of the CPEC.

Riaz Haq said…
China and Pakistan should speed up bilateral cooperation in agriculture, mineral and technology, China’s Premier Li Qiang told Pakistani Prime Minister Shehbaz Sharif during a phone call on Thursday, Chinese state media reported.

https://www.brecorder.com/news/40239176

Li also said the two countries should build a China-Pakistan Economic Corridor as a demonstration project under China-proposed Belt and Road Initiative, according to state media.

A day earlier, Chief of Army Staff (COAS) General Asim Munir also held a “detailed” meeting with the Commander of the People’s Liberation Army (PLA) as part of his official visit to the country, with both sides agreeing to enhance relations between their militaries.

“Matters of mutual security interests and military cooperation were discussed,” a statement by Pakistan’s Inter-Services Public Relations (ISPR) said.

“Both military commanders reiterated the need for maintaining peace and stability in the region and enhancing military to military cooperation,” it added.

Separately, Chinese envoy had earlier assured Finance Minister Ishaq Dar of continued support to neighbouring Pakistan, which remains engulfed in a balance payment crisis.

The development came during a meeting between Pang Chunxue, Charge’d Affairs, Embassy of the People’s Republic of China, with Dar at the Finance Division on Tuesday.

As per the statement from the Ministry of Finance, Dar highlighted historical bilateral relations between China and Pakistan and commended Chinese support for Pakistan. He also underscored the need for further deepening relations in economic, trade and financial sectors.
Riaz Haq said…
The road that's the 'Eighth World Wonder'

https://www.bbc.com/travel/article/20230903-the-karakoram-highway-the-road-thats-the-eighth-world-wonder


The 1,300km Karakoram Highway cuts through some of the most astounding rock faces on the planet. It's a road trip of dreams, yet few have ever heard of it or how it came to be.

Crisp mountain air rushed in through the car window as I drove past jagged mountain landscapes. Despite summer being in full swing, massive amounts of snowpack still clung to the 7,000m peaks. Glacial waterfalls dripped down to feed the aquamarine river below, through Pakistan's high-altitude Hunza Valley that was aptly termed "Shangri La" by British novelist James Hilton.

I was driving the Karakoram Highway (KKH), which cuts through some of the most astounding rock faces on the planet. Often coined the "Eighth Wonder of the World", it's a road trip of dreams, yet few have ever heard of it, or how it came to be.

The KKH was once a leg of the Silk Road, with its foundations built by locals centuries ago. However, it wasn't until 1978 – after nearly 20 years of construction by more than 24,000 Pakistani and Chinese workers – that it was officially inaugurated for vehicles, which brought trade, tourism and ease of travel to this remote part of the world.

The 1,300km highway extends from the small city of Hasan Abdal near Pakistan's capital of Islamabad to Kashgar in China's autonomous Xinjiang region via Khunjerab, the highest paved border crossing in the world at about 4,700m. But I was drawn to the 194km stretch of the highway that runs through the Hunza Valley, a region surrounded by the Karakoram Mountains that give the highway its name. This impossibly beautiful section is where you can see pristine glaciers, alpine lakes and snow-capped peaks right from the comfort of your ride. However, as alluring as the journey is, it's the incredible people and traditions of the Hunza Valley that make this part of the highway so special.

Nestled in the Gilgit Baltistan territory between Xinjiang and Afghanistan's Wakhan Corridor, Hunza was mostly cut off from the world until the 20th Century due to the formidable geography. Primarily home to the Burusho and Wakhi people, the remote region has its own languages, music and culture that's unlike anything you'd find in Pakistan – or anywhere else in the world.

Riaz Haq said…
EIU (Economic Intelligence Unit)report

China Going Global Investment Index 2023
This year’s edition of the China Going Global Investment Index ranks 80 economies across nearly 200 indicators to identify opportunities and risk for Chinese firms and investors looking to expand globally.

A decade since Xi Jinping’s Belt and Road Initiative (BRI) launched in 2013, Chinese firms have become formidable investors globally, and the flow of overseas investment is set to increase over the next decade.

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