Transportation Engineering

Assignment - 1
Salient Features of CPEC
Introduction
China–Pakistan Economic is a collection of
infrastructure projects that are currently under
construction throughout Pakistan. CPEC is
intended to rapidly modernize Pakistani
infrastructure and strengthen its economy by
the construction of modern transportation
networks, numerous energy projects, and
special economic zones. This economic corridor is about 3000 kilometers long consisting of
railroads, highways, and pipelines that will connect China to rest of the world through
Pakistan’s Gwadar port. It is a game changer project for the Asian countries in general and
Pakistan and China in particular. Once completed, it is hoped that the fully optimized and
energized CPEC project would boost economic, trade, and social activities in the country.
According to the consensus reached by the two countries, both sides agreed to promote a “1+4”
pattern of economic cooperation, featuring a central role of the CPEC and four key areas
including the Gwadar port, energy, transportation infrastructure and industrial cooperation, so
as to achieve win-win results and common development. In the medium-to-long term, both
sides will explore and expand the cooperation fields to financial services, science and
technology, tourism, education, poverty elimination and city planning, etc., so as to meet the
demands of deepening and expanding of China-Pakistan all-round cooperation, and play a
better role in leading and promoting substantive cooperation between the two countries.

Figure 1 Map of CPEC

Salient Features of CPEC:
 The CPEC is a collection of infrastructure and energy projects whose total worth is around
$46 billion.
 The project was launched in 2015. If completed, the 3,000-km network of roads, railways
and pipelines will link western China to Southern Pakistan.
 The CPEC is a part of Chinese President Xi Jinping's Silk Road Economic Belt and the
21st Maritime Silk Road projects, two development plans that seek to deepen Mainland
China's economic cooperation with a number of Asian and European countries.
 The corridor will pass through Baluchistan province - where a separatist movement has
been under way for decades - as well as through Gilgit-Baltistan and Pakistan-occupied
Kashmir.
 Pakistan's motivation for investing in the project is two-fold: it hopes the CPEC will
stimulate economic development and increase energy production. In fact, $35 billion will
be invested in coal and LNG-based thermal energy projects in Pakistan, the Economic
Times reported.
 First, China expects to be able to transport its energy supplies from the Persian Gulf faster.
Second, the corridor could lead to economic development in Western China, a land-locked
region. And finally, China, by "establishing its physical footprint" in Gilgit-Baltistan, also
hopes to check the movement of Uighur separatist militants.
 The Gwadar deep-water port in Baluchistan province is an important cog in the CPEC
apparatus. China Overseas Ports Holding Company Ltd, the Chinese firm that in 2013 took
over port operations, expects Gwadar port to be fully operational before the end of the year,
and to process a million tons of cargo in 2017. Most of the cargo will be construction
materials for the CPEC. It is worth noting that in the conflict-torn region where the port is
situated, there has been a decades-long struggle for independence from Pakistan, which is
accused of siphoning the region's resources into its coffers to the detriment of its residents.
 More than 17,000 Pakistani security personnel have been tasked with providing protection
for Chinese nationals in Pakistan. It was reported in April than Pakistan was set to deploy
an additional 4,000 personnel to provide security for Chinese nationals working on the
CPEC - amongst other projects - in Punjab province.
 Pakistan and China will monitor the progress made on CPEC projects using a satellite,
which is set to be launched in June 2018, reported by the Dawn online.

Detail of Projects under CPEC:

Gawadar Port & Allied Projects
 The Gawadar Port development includes:
 Upgrade/ expansion of port capacity for larger ships with deadweight tonnage of upto
70,000
 Construction of breakwater, berthing areas & channels at the port with a total cost of USD
182Mn
 Construction of a floating LNG storage facility of 500 Mn cubic ft
 A ‘Free Trade Area’ is also being developed at the premises covering a land area of 2,282
acres, will offer 20-40 years tax holiday, to be completed in 3 phases, to be completed by
2030 and will cost over USD 32Mn.
 Includes development of an international airport to be completed by Dec-17, spreading over
an area of 4 acres, costing approx. USD 230Mn.
 A 300 MW coal power plant is also being built at the premises.
Other planned projects at Gawadar include
 Desalination plant (will cost USD 130Mn)
 A 300-bed hospital costing USD 100Mn
 A 19-km expressway costing USD 130Mn, connecting Gawadar port to Makran Coastal
Highway
 Technical & vocational institute with a cost of USD 10Mn
 Cross-border optical fiber cable costing USD 44Mn
 Digital Terrestrial Multimedia Broadcast costing USD 2Mn

Road Projects:
There will be 4 road projects under CPEC with a total estimated value of USD 10.6Bn. These
are to be developed in different phases out of which the early harvest projects will have an
estimated cost of approx. USD 6.1Bn. The roads would include the following:
 Northern Route: Involves Karakoram Highway (KKH) reconstruction project with a total
stretch of 887 Km. It will originate from Khunjerab and will pass through Raikot and
Thakot before reaching Abbottabad, stretching over a distance of 1,152 Km from Lahore
to Karachi.
 Eastern Alignment: It will be divided into 4 sections and will be a 4-6 lane highway. The
major cities at this road will include Lahore, Multan, Sukkur, Nawabshah, Hyderabad and
Karachi.
 Western Alignment: Stretching over 1,677 Km, it is expected to be completed by 2018
(Divided in 6 sections namely Hakla-DI Khan (288Km), DI Khan-Zohrab (205Km),
Zohrab-Quetta (331Km), Quetta-Sohrab (211Km), Sohrab-Hoshab (449Km) & Hoshab-
Gwadar (193Km).
 Central Alignment: This will be a longer-term project connecting KKH to Gawadar via DI
Khan, Muzafargarh, Layyah, Rajanpur, Sukkur, Khuzdar and Basima

Railway Projects
The Railway overhauling plan will basically include 5 projects:
 RL 1 (Karachi – Peshawar): Stretching over 1,687 Km, to be completed in 2 phases; Phase
1 ( Multan to Peshawar costing USD 3.65Bn; to be completed in 2017) & Phase 2 (Multan-
Karachi costing USD 8.2Bn; to be completed by 2021)
 RL 2 (Kotri – Attock): Distance of 1,254 Km
 RL 3 (Bostan – DI Khan): Distance of 560 Km, to be completed by 2025
 Orange Line Metro (Lahore): To be constructed inside Lahore by 2017. Total distance
covered will be approx. 27.1 km and project will cost USD 1.6Bn
 Khunjerab Railway (Khunjerab – Havelian): To be stretched over a distance of 682 km to
be completed by 2030 with an estimated cost of 12Bn.
Energy Projects:
The total planned capacity under the envisaged energy projects under CPEC is 16,400 MW,
out of which the early harvest projects (to be completed by 2018) will provide 10,400 MW &
will cost USD 35 Bn. Major early harvest/ short term projects include:
Type Project Capacity Province Est. Cost Est. Status
(USD Completion
Mn) Date
Coal-based Port Qasim 1,320MW Sindh 1,980 2018 Financial
(7,560 MW) close attained
(2 plants) (Imp.
Coal)

Engro Thar 1,320 MW Sindh 3,470 2018/19 Financial

(Thar close for
(4 plants)
Coal) 660MW
attained

Thar-II (2 1,320 MW Sindh 3,300 2018/19

plants) (Thar
Coal)

Sahiwal 1,320 MW Punjab 1,600 2017

Coal (Imp.
Coal)
(2 plants)

RYK Coal 1,320 MW Punjab

HUBCO 660 MW Balochistan 1,200 2018/19

(Imp.
Coal)
Gawadar 300 MW Balochistan

Wind-based UEP 100 MW Sindh 250 2016 Financial

(250 MW) close attained

Dawood 50 MW Sindh 125

Sachal 50 MW Sindh 134 2017 Financial

close attained

Sunnec 50 MW Sindh

Hydel Karot 720 MW Punjab 1,420 Financial

close attained
(1,590 MW)
SK Hydro 870 MW KPK 1,802 Financial
close attained

Solar Quaid-E- 1,000 MW Punjab 1,350

Azam Solar
(1,000 MW)
 Transmission Matiari – 660KV Sindh &
Line Projects Faisalabad Punjab

Matiari – 660KV Sindh & 2,100 To be

Lahore (878- Punjab awarded to
KM) ‘China
Electric
power
Equipment &
Technology
Co(CET)

TOTAL 21 Projects 10,400 –

MW

Benefits of CPEC to China & Pakistan

 CPEC will open doors to immense economic opportunities not only to Pakistan but will
physically connect China to its markets in Asia, Europe and beyond.
 Almost 80% of the China’s oil is currently imported from Strait of Malacca to Shanghai,
(distance is almost 16,000 km and takes 2-3 months). With Gawadar becoming operational,
the distance would reduce to less than 5,000 km.
 CPEC will act as a bridge for the new Maritime Silk Route that envisages linking 3 billion
people in Asia, Africa and Europe, part of a trans-Eurasian project. When fully operational,
Gwadar will promote the economic development of Pakistan and become a gateway for
Central Asian countries, including Afghanistan, Uzbekistan, linking Sri Lanka, Iran and
Xinjiang to undertake marine transport.
 Pakistan’s present energy shortfall will be adequately met with a total added generating
capacity of 16,400 MW (10,400 to be added to the national grid by 2018)
 Pakistan will also be able to access Central Russian states bypassing Afghanistan. Central
Russian states can also utilize the route for their trade.
 CPEC will directly compete with Iran’s Chaubahar port
 Implementation of CPEC will improve incomes of local people especially in backward
provinces of KPK & Baluchistan, will create employment and will also result in improved
law & order situation in the country.
 Tourism which currently makes up an insubstantial part of Pakistan’s earnings is believed
to be elevated by opening of this economic corridor.
 The region of Baltistan is known for its fresh fruit exports. CPEC is expected to open fresh
business opportunities for the region’s traders. Presently, fruits are being exported through
air-cargo via Dubai however, it would be faster and cheaper if the same could be sent by
road to China and rest of the world.

References:
https://5minutesread.com/2017/07/10/salient-features-of-cpec/
http://cpec.gov.pk/
https://www.thenews.com.pk/latest/258078-cpec-long-term-plan-complete-document