|
Gwadar port: ideal site for export-oriented industrial parks
Rashid Soorty
ARTICLE: Since President Pervez Musharraf performed the ground-breaking ceremony for the development of the long-awaited Gwadar port on March 22, 2002 and the Chinese participation in the development of the port and their contribution in phase-I has created a keen interest not only among Pakistani entrepreneurs but also in other parts of the world, particularly Central Asia, Afghanistan, China, Japan, Singapore.
The completion of phase-I is expected at the end of this year or in early March 2004 then phase-II will be undertaken without any delay.
The construction of deep-sea port has received attention of the investors of various countries but much depends on how the government's planning commission and various federal and concerned provincial departments provide funds for investment in this coastal area.
Gwadar deep sea does not seem to be economically viable unless great efforts are made for creating conducive environment for industrialisation of this region based on strategies, programme and scientific approach and efficient directions to make it a comprehensive and competitive project.
To the best of my knowledge and information, China is not inclined to participate in joint ventures.
However, it is prepared to help Pakistan in the development by building infrastructure for the deep-sea port.
There are no two opinions about China's role in the structure of Gwadar port and if China extends further
co-opefration in contributing the investment in joint venture or even technical co-operation in planning and developing industrial parks, there is no better alternative and the government will try to implement industrial parks projects with the assistance of China.
The process of industrialisation in Pakistan has suffered a setback since the previous government in 1972 embarked on nationalisation
programme. Investors in Pakistan withdrew their hands from further investment and since then, one can see a very negligible domestic investment coming in.
The present government is very keen on inviting foreign investment and great efforts are being made by the board of investment as well as various ministries such as Commerce, Industries and Finance to lure investors to come to Pakistan.
Unless domestic investors set the ball rolling with viable export-oriented projects, foreign investment will continue to wait and watch before taking any initiative.
The relation between Pakistan and China being very cordial, China can still be persuaded to invest if our government prepares very ambitious plan for creating a free-trade zone followed by export processing zone with unique offering coupled with attractive incentives to the customers for advantages in productivity at Gwadar port.
As an example, Singapore is developing industrial parks in various parts of Asia, which also offers a solution for speedy development of industrial estates in
Gwadar. Economic development board of Singapore is responsible for all activities pertaining to economic development, planning of industries and promotion of export.
There is a separate organisation ie SembCorp Park Management (SPM) which undertakes planning, marketing and management of industrial parks since 1990.
Batamindo Industrial Park: Located on the free trade island of Batam (Indonesia), approximately 20 km from Singapore, the Batamindo Industrial Park (BIP) is pioneer in the industrial township concept.
It combines the very best in manufacturing facilities, utilities and support services.
The BIP has been developed as part of the economic co-operation agreement within the Riau development framework, which was signed by the governments of Singapore and Indonesia.
The park, which commenced operation in 1991, spans over 320 hectares, and is staffed by 70,000 workers.
With its proximity to Singapore, the BIP is well positioned to enjoy the complementary strengths of the two countries, such as access to world markets through Singapore, and attractive incentives from Indonesia.
Bintan Industrial Estate: The Bintan Industrial Estate (BIE) is a duty free Export Processing Zone on Bintan Island in Indonesia, about 50 km from Singapore.
Besides attractive incentives, the BIE also offers investors an abundance of resources as well as access to world markets via Singapore's excellent transport and logistic infrastructure.
Focusing mainly on the electronics and resource-intensive light industries, the BIE was conceived to capitalise on the synergies that exist between Singapore and Indonesia. Investors in the BIE enjoy a package of incentives similar to those of BIPs.
Vietnam Singapore Industrial Park: Located in Binh Duong Province, approximately 17 km from Ho Chi Minh City, the Vietnam Singapore Industrial Park (VSIP) is situated within easy reach of Tan Son Nhat International Airport, as well as major river port.
Operating in Binh Duong means easy access to a ready pool of labour as well as more favourable operating costs when compared to Ho Chih Minh City.
Wuxi-Singapore Industrial Park: The Wuxi-Singapore Industrial Park (WSIP) is a world class facility that offers an excellent environment for high-tech and electronics manufacturing.
The park has been certified ISO 9002-the first integrated industrial park in China to have achieved this quality mark.
The focal point for much of the economic activity in the Yangtze River Delta, Wuxi is only 130 km away from Shanghai, and is also within easy reach of other major river ports.
Its strategic location, quality facilities, reliable utilities, and the well-developed transport and telecommunications networks of Wuxi have contributed to WSP's success.
Since no firm proposal has been made by Pakistan or by any semi-government or private organisation, Sembcorp Parks Management (SPM) will not be able to confirm their participation in finding based investment in Pakistan's Industrial Parks Projects.
However, with extensive experience and expertise gained through a decade of operations of various industrial projects, SPM is now able to claim that they are in a better position to provide global companies solutions to their manufacturing needs through its portfolio of integrated industrial parks.
SPM is to plan market, offer reliable and efficient infrastructure as well as comprehensive one-stop service within a safe and harmonious working environment and rewarding work environment for the workers of industrial parks.
Action Plan on Priorities: The government of Pakistan should immediately initiate negotiation with Sembcorp Parks Management (SPM), Singapore, for creation of industrial park in Gwadar.
For that purpose, the government of Balochistan will have to earmark a strategic location near Gwadar Port Project for industrial and investment purposes.
Gwadar airport should be extended to be a full-fledged international airport so that investors reach Gwadar directly without any transit hazards.
In order to provide facilities to the industrialists and investors, the most immediate need is to plan Export Processing Zone and demarcation of the industrial plots in varying sizes are earmarked and sold on lease to the legible entrepreneurs who submit proposals for setting up industries.
All proposals should be supported by viable feasible studies of the project. The price of the industrial plot should be attractive.
However, there should be a time limit given to every investor for starting the project so that industrial activities in the Export Processing Zone start on time as schedule given for fast start up of operation of plants.
The allocation of land to investors will be conditional that the project is export oriented and that there is time limit for the completion of the project and if the project is not in operation within the given time the allocation of industrial plot would be cancelled.
Besides, the land should be earmarked for at least two 5-Star hotels so that the construction of hotel is completed within three to four years by the time industrial activities reach full gear.
All the activities mentioned above are time-consuming and in view of the urgency of industrialisation process at Gwadar, the decisions on various proposals should be taken for immediate implementation.
From the information available, one can pick and choose priorities from the following recommendations:
Declaration of Gwadar Port as Free Trade Zone followed by declaration of Export Processing Zone and notified its status as such.
Earmark land for industrial parks. At least three Industrial Parks ie
(I) value-added textiles
(ii) other major export oriented industries
(iii) Miscellaneous Small and Medium Industries preference to women ownership.
Peoples Republic of China, Singapore, Japan and Malaysia should be invited to participate in joint ventures in export oriented industrial parks.
However for speedy execution of plans for industrial parks, Singapore may play a key-role.
More countries may be attracted if industrial parks achieve highest standard of workmanship and government incentives.
Land grabbed by land mafia must be recovered and allotted to genuine industries on approval of their feasibility.
For industrial projects, foreign participants should be allotted land in industrial parks according to sanction of projects.
Expeditious completion infrastructure and utility services. Provision for executive and staff housings and dormitories. Construction of at least two five star hotels. Construction of pre-fabricated SME with preference to women entrepreneurs.
Time is the essence and delay could keep on multiplying cost of development and infrastructure.
If we have to prepare for 2005 and march with implementation of conditionalities of new world order that lays emphasis on WTO prescription of competitiveness, productivity and broaden the export base coupled with all refinement and innovation, our government should ensure that not a day pass without implementing decision taken on action plan.
Source: Business
Recorder
|
Pakissan.com;
|
