No Viable Plan for Gwadar Airport: Iqbal Denounces Delays, Urges Action to Attract Airlines and Develop Cargo Facilities
Introduction
ISLAMABAD: Pakistan is facing significant challenges in making the newly inaugurated New Gwadar International Airport operational due to a lack of a commercial plan. The Pakistan Civil Aviation Authority (PCAA) and the Pakistan Airports Authority (PAA) have yet to develop a viable strategy for the airport, which remains commercially unviable until the Gwadar Port and Free Zone are fully developed. Planning Minister Ahsan Iqbal has expressed strong dissatisfaction with the delays, urging immediate action to attract airlines and develop essential cargo facilities.
Background and Current Status
Construction and Funding
The New Gwadar International Airport was constructed with a Chinese grant of $230 million as part of the China-Pakistan Economic Corridor (CPEC). The airport, featuring a 3,648-meter-long runway, is intended to serve as a major air traffic hub. However, the soft opening, conducted during the Chinese prime minister’s visit to Pakistan, was premature, lacking a comprehensive commercialisation plan.
Criticism from Planning Minister Ahsan Iqbal
Planning Minister Ahsan Iqbal has criticised the PCAA and PAA for failing to develop a business plan despite repeated instructions over the past two years. According to a statement issued by the planning ministry, Iqbal lambasted the regulators for their inability to make the airport commercially viable and for not aligning it with the development of the Gwadar Port and Free Zone.
Commercial Viability Issues
Incomplete Development
PAA officials have stated that the airport cannot become commercially viable until the Gwadar Port and Free Zone are fully developed. Essential passenger facilities such as food outlets, baggage wrapping, car parking, lounges, and transportation remain underdeveloped. Additionally, critical services like cold storage are still in the tendering stage, further delaying operational readiness.
Lack of Airline Interest
Local airlines, except for the financially struggling Pakistan International Airlines (PIA), have shown little interest in starting operations at the airport. This reluctance is primarily due to the current unstable security and political environment in Pakistan, which hinders Gwadar’s potential as a tourist and regional hub.
Proposed Solutions and Immediate Actions
Attracting Airlines
Minister Iqbal has proposed several strategies to attract airlines to Gwadar Airport. These include offering attractive rates for at least five years, highlighting technical landings, and providing free landing services for a few months. He emphasised that if airlines are not attracted within six months of the inauguration, the airport’s chances of success would significantly diminish.
Developing Cargo Facilities
Iqbal stressed the urgent need to establish air cargo facilities and instructed the PCAA to engage global logistics companies such as DHL and FedEx. This engagement aims to kickstart cargo operations and prioritise the development of cargo utilities, which are essential for the airport’s commercial viability.
Safety Evaluations and Airfield Regularisation
Additional Director General PAA, Air Vice Marshal Zeeshan Saeed, briefed the meeting on safety evaluations and airfield regularisation. He assured operational clearance by December, highlighting the importance of meeting safety standards to attract international airlines.
Government’s Vision and Future Plans
Establishing Gwadar as a Strategic Hub
The government’s vision is to establish the New Gwadar International Airport as a central point for long-haul flights and a cost-effective alternative to Oman and Dubai for technical landings. Minister Iqbal instructed officials to position the airport accordingly and emphasised Gwadar’s potential to serve as a strategic hub for regional and global connectivity.
Engaging International Business Partnerships
Iqbal reiterated the importance of engaging international business partnerships to ensure the airport’s role in Gwadar’s economic development and Pakistan’s broader growth ambitions. He issued a three-week deadline to PAA officials to present a comprehensive commercialisation plan, complete with clear timelines and strategies for stakeholder engagement.
FAQs
1. Why is the New Gwadar International Airport not commercially viable?
The New Gwadar International Airport is not commercially viable until the Gwadar Port and Free Zone are fully developed. Essential passenger and cargo facilities are still underdeveloped, and there is a lack of airline interest due to the current unstable security and political environment in Pakistan.
2. What steps are being taken to attract airlines to the New Gwadar International Airport?
Planning Minister Ahsan Iqbal has proposed offering attractive rates for at least five years, highlighting technical landings, and providing free landing services for a few months to attract airlines. Additionally, the PCAA is instructed to expedite efforts to attract airlines and develop air cargo facilities.
3. How is the government planning to develop cargo facilities at the New Gwadar International Airport?
The government plans to establish air cargo facilities by engaging global logistics companies such as DHL and FedEx. These companies are expected to kickstart cargo operations and prioritise the development of cargo utilities, which are essential for the airport’s commercial viability.
4. What is the government’s vision for the New Gwadar International Airport?
The government’s vision is to establish the New Gwadar International Airport as a central point for long-haul flights and a cost-effective alternative to Oman and Dubai for technical landings. The airport is also expected to serve as a strategic hub for regional and global connectivity.
5. What challenges does the New Gwadar International Airport face?
The New Gwadar International Airport faces challenges such as incomplete development of essential facilities, lack of airline interest, and an unstable security and political environment. Additionally, the airport was constructed without conducting a market analysis, raising concerns about its commercial viability.
Conclusion
The New Gwadar International Airport’s journey to becoming a commercially viable entity is fraught with challenges. The lack of a comprehensive commercialisation plan, incomplete development of essential facilities, and insufficient airline interest pose significant hurdles. However, with immediate action and strategic planning, the airport has the potential to serve as a central hub for regional and global connectivity, contributing to Gwadar’s economic development and Pakistan’s broader growth ambitions. The government’s focus on attracting airlines, developing cargo facilities, and engaging international business partnerships is crucial for realising this vision.
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