For this discussion I will emphasise the
port upgrade. I have discussed the below briefly in the past I believe it is becoming more relevant. So I will mention, what GPX is unable to mention, and the reasons the Chinese are mass constructing ports in Tanzania.
It is known amongst many people, and professionals, that China are constructing a road/railroad through Pakistan;
China-Pakistan Economic Corridor project (CPEC). This railway has the intention to boost the international trade between the two countries. But more prominently, almost completely
by-pass the Chinese use of the Strait of Malacca. Although the full length of the railway won't be completed until 2030, the railway already connects Pakistan to China. Part of this project includes mass-highways connecting the two countries; which can be used for commodity transport.
The economic corridor between Pakistan-China, is commended for ingenuity by professionals around the world due to the by-pass of the Straight of Malacca, a highly congested trade route. This trade route is one of the very reasons for Singapore's trade success.
Once the China-Pakistan Economic Corridor is built, imported commodities from Middle East and Africa will no longer have to pass through the Strait of Malacca but will reach reach the country by land with a saving of both time, and cost.
Why is this important?
"On 13th November 2016, CPEC became partly operational when Chinese cargo was transported overland to
Gwadar Port for onward maritime shipment to
Africa and
West Asia."
As stated, in 2016, the Chinese completed preliminary construction of the Gwadar Port Complex. It is expected that by the end of 2017, the port will handle over one million tons of cargo per year, most of which will consist of construction materials for other CPEC projects.
The future plans of this port is to ascertain port capacity of 400 million tons of cargo per year. This would make it one of the largest ports in the world (roughly 6th-4th).
Projects related to CPEC includes power stations. By Chinese law, as we all know, they must ascertain a fire proof rating achievable through expandable graphite. Hence, the graphite in GPX is sought after, likely for all of the above reasons:
1. To invest, or be used in CPEC.
2. To utilise the new, and highly prominent economic corridor between Pakistan-China.
Chinese are explicitly after future projects to gradually utilise the Gwadar Port and the economic corridor.
Mtwara Port
The upgrade of this port, means that South Tanzania, has the shipment capabilities to handle mining and minerals transportation. To where?
Gwadar Port, through to China.
DYOR
