ISLAMABAD: A brewing dispute between the Balochistan government and the New Modern Shipyard project under the Gwadar Port Authority has once again highlighted the complexities surrounding Gwadar’s development, sources revealed.
The Senate Standing Committee on Defence Production held a meeting under the chairmanship of Senator Muhammad Abdul Qadir. The agenda included briefings on the construction progress, land issues, and financial challenges of the Gwadar Shipyard. However, the meeting was held in-camera.
While speaking to Business Recorder, sources disclosed that the Balochistan government allocated 750 acres of land for the New Modern Shipyard Project in 2023. However, disagreements over technical feasibility, delays in construction, and financial issues have put the ambitious project in jeopardy.
The New Modern Shipyard was envisioned as a transformative project for Gwadar, aimed at manufacturing ships and providing technical and mechanical support for the maritime industry.
Sources revealed that the Balochistan government allocated 750 acres in Mozah Kapar, a location that was deemed technically unfeasible for establishing a state-of-the-art shipbuilding facility, as it is situated 60 km away from the sea.
Moreover the sources maintained that according to the technical team, the proposed shipyard’s strategic location is in Mozah Surband, which is 24 km away from the sea. This location was chosen due to its proximity to the deep-sea port and zero-height seabed, allowing large vessels to dock and be constructed efficiently.
The Gwadar Port Authority has raised concerns over the legitimacy of the land allocation, arguing that the project does not fully align with the region’s Gwadar Master Plan 2050.
Sources further stated that global shipbuilding principles emphasize the need for seamless integration between ports and shipyards, which critics argue is lacking in the current plan.
In 2017, China Communications Construction Company Limited and Fourth Harbour Engineering conducted an investigation for the development of the Gwadar Master Plan, which was completed in 2018 and submitted to the federal government for approval.
The total cost of the master plan was Rs. 521 million, out of which Rs. 425 million was provided as Chinese aid, while the Government of Pakistan contributed Rs. 91 million. This master plan is set to be completed by 2050 and is referred to as the Gwadar Smart City Master Plan. Under this plan, the Gwadar Shipyard is one of the key projects, for which the Government of Balochistan allocated land.
Senator Mohammad Abdul Qadir, in a post on X, stated that the Gwadar Shipyard mega project is not just for Balochistan but an important part of Pakistan’s development.
He emphasized that Pakistan is working rapidly on major projects, and removing the shipyard from national control would be detrimental.
Highlighting Gwadar’s significance, he stressed that the deep-sea port is an ideal location for shipbuilding. A central shipyard in Gwadar would facilitate the manufacturing of large ships and pave the way for additional shipyards in other regions.
Copyright Business Recorder, 2025
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