China to run Pakistani naval port as PSI box shop lease contested in court

PAKISTANI officials have announced that China will take control of operations of the Port of Gwadar in the western region of the country not far from the Iranian border, to build a naval base for Pakistan, the Wall Street Journal reported.


While China constructed the Gwadar port, it is currently operated by PSA International, a Singaporean state-controlled company, which has a 40-year lease, though the contract has been challenged in court.


"We are grateful to the Chinese government for constructing Gwadar Port, However, we will be more grateful to the Chinese government if a naval base is being constructed at the site of Gwadar for Pakistan," said Pakistani defence minister Ahmad Mukhtar.


The port is well-placed for trade with Central Asia and as a supply point for Chinese oil imports, but is currently underused, with domestic political conflict hampering its commercial potential, said the report.
(Source:http://www.schednet.com)