Gwadar Port operations face hurdles

The government is facing a host of challenges in the way of operationalising Gwadar Port despite offering a lucrative deal to the Chinese port operator. In a report submitted to the prime minister, several challenges have been identified like the reluctance of international insurance companies due to security challenges, higher port costs and the lack of road and rail infrastructure. Despite its geostrategic advantage, the port had not been able to secure a significant share in the global merchant shipping traffic, it said. Operational costs are high, making the port less competitive than regional ports like Jebel Ali and the local economy does not generate sufficient cargo volumes.