ISLAMABAD: Turkmenistan is poised to become the first Central Asian country to utilize Pakistan’s Gwadar Port under the China-Pakistan Economic Corridor (CPEC), as a draft agreement between the Port of Gwadar and the Port of Turkmenbashi is currently under cabinet-level review.
The partnership aims to boost regional trade by connecting South and Central Asia through enhanced rail, fiber, and transit routes, according to a report by Gwadar Pro. This agreement is expected to significantly reshape regional trade dynamics, enhancing the port’s potential and instilling confidence in its future as a key trade hub.
Experts suggest that Gwadar’s strategic development will create new avenues for vast regions such as Central Eurasia, Afghanistan, Southern Russia, and Southwest China to converge at the port. Khalid Taimur Akram, a Central Asia and regional expert, noted that this access would bring substantial benefits to landlocked Central Asian countries as well as Pakistan.
Positioned near the Strait of Hormuz, Gwadar is ideally located to facilitate energy transit to and from Central Asia, providing a shorter, more efficient trade route to international seas. Countries like Uzbekistan, Kazakhstan, and Kyrgyzstan stand to benefit from reduced transportation costs and shorter transit times.
Akram emphasized that trade from Gwadar to the Central Asian Republics (CARs) would reduce the distance by 50% compared to routes through Iran, with freight charges likely to decrease by around 30%.
This reduction in costs and time would drive increased trade volume through Gwadar, fostering stronger economic ties between Pakistan and CARs.
He also pointed out that by offering an alternative to traditional trade routes, Gwadar Port will diversify trade options for Belt and Road Initiative (BRI) countries, including CARs, thereby enhancing trade security.
Turkmenistan’s growing export capacity offers a significant opportunity for Gwadar Port. According to trading statistics, Turkmenistan’s exports rose to $14.1 billion in 2023, up from $13.5 billion in 2022.
