Govt reduces tariffs at Gwadar Port in bid to boost global traffic

AI Summary

The government of Pakistan has announced significant tariff reductions at Gwadar Port to increase global traffic. The measures are expected to lower operational costs for shipping lines and enhance the port's attractiveness as a key trade gateway.

Federal Minister for Maritime Affairs Junaid Anwar Chaudhry on Monday announced a major reduction in tariffs at Gwadar Port aimed at boosting global transit traffic, according to an official statement. According to the statement, the minister said that berthing fees for container ships have been reduced by 25 per cent, while port charges on international transshipment containers have been cut by 40pc. He added that port charges on transit container cargo have also been reduced by up to 31pc. Further, a one-month free storage facility has been introduced for general cargo, compared to the standard five-day allowance at other national ports, the minister added. “Ships bringing transit and transshipment cargo have been given major relief,” Chaudhry was quoted as saying. “These incentives take effect immediately, and further adjustments will be reviewed in phases based on operational data and market response,” the minister added, noting that future revisions would be guided by cargo trends, regional competition, and sustainability considerations. Chaudhry said the measures formed part of a broader strategy to transform Gwadar into a competitive, investor-friendly, and modern deep-sea port serving as a strategic gateway for trade with Central Asia, the Middle East, East Africa and beyond. He said that amid rising demand for low-cost and congestion-free shipping routes, Gwadar was well placed to capture a larger share of regional trade flows. The revised tariff regime, he added, was expected to reduce operational costs for shipping lines, encourage new transshipment and feeder services and increase cargo throughput. “This initiative will stimulate economic activity in the country, generate employment opportunities, and expand Pakistan’s logistics and maritime sectors,” he said. Meanwhile, Gwadar Port Authority Chairman Noorul Haq Baloch said that the new tariff structure was expected to grow employment opportunities. He said that reduced fees and improved facilities would attract both local and international investors, accelerating economic development in the region and creating new job opportunities. A day earlier, Baloch said that amid rising tensions in the Strait of Hormuz, the strategic importance of Gwadar Port had significantly increased due to its shorter access routes to Iran and Central Asia, along with investor-friendly incentives. During a meeting with members of the All Pakistan Shipping Association in Karachi, he said the port was increasingly being viewed as a safe alternative trade gateway for the region. He said Gwadar had the potential to become the future hub of regional trade and logistics because of its low operational costs, modern facilities, and shorter trade routes. He added that the Gabd-Rimdan border route had emerged as an effective multi-modal corridor for promoting trade with Iran and Central Asia. Earlier this month, Baloch also said that four transshipment shops were recorded at the port during April, indicating Gwadar’s growing importance as an alternative trade route in the region.