Logistics Management

Final Presentation

Submitted to:
Sir Prof DR. Ghulam Rasool Awan

Submitted by :
Ukashah Saeed L1S15MBAM0070
Saniya Faryal l1F15MBAM0136

Title: Logistics Requirements upon Completion

Of CPEC (China Pakistan Economic Corridor)

Introduction

China-Pakistan Economic Corridor is a framework of regional connectivity

If gives benefits to China and Pakistan as well as Iran, Afghanistan, India, Central
Asian Republic, and the region.
Improved Transportation system and flourish industries
This corridor will incorporate 2,000 kilometer transport link between Kashgar in
northwestern China to Pakistans Gwadar port on the Arabian Sea near the border
with Iran via roads, railways and pipelines
CPEC is a 3,218 kilometer long route
cost of the project is expected to be US$75 billion
This corridor is expected to be operational by 2020
It is estimated the CPEC project will create some 700,000 direct jobs during the
period 20152030
China believes in Good Neighbor Policy and promoting an interdependent, rather than
competitive, relationship with its neighboring countries and the world.
China-Pakistan Economic Corridor plan will help Pakistan to become one of the most
strategically important countries in the region
Free trade agreement between both countries enhance the trade of Pakistan
CPEC is a game changer project

Indicator of Economic
Growth

Route
Central Route

Gwadar-Turbat-Panjgur-Khuzdar2 -Ratodero-Kashmore-Rajanpur-Dera Ghazi

Khan-Dera Ismail Khan-Bannu-Kohat-Peshawar-Hasanabdal-and onwards.
Eastern Route

Gwadar-Turbat-Panjgur-Khuzdar-Ratodero-Kashmore-Rajanpur-Dera Ghazi
Khan-Multan-Faisalabad-Pindi Bhatian-Rawalpindi-Hasanabdaland onwards.
Western Route

Gwadar-Turbat-Panjgur-Khuzdar-Kalat-Quetta-Zhob-Dera Ismail KhanBannuKohat-Peshawar-Hasanabdal-and onwards.

Central Route
Gwadar-Turbat-PanjgurKhuzdar2 -RatoderoKashmore-RajanpurDera Ghazi Khan-Dera
Ismail Khan-BannuKohat-PeshawarHasanabdal-and
onwards.

Eastern Route
Gwadar-Turbat-PanjgurKhuzdar-RatoderoKashmore-Rajanpur-Dera
Ghazi Khan-MultanFaisalabad-Pindi BhatianRawalpindiHasanabdaland onwards.

Western
Route
Gwadar-Turbat-PanjgurKhuzdar-Kalat-QuettaZhob-Dera Ismail
KhanBannu-KohatPeshawar-Hasanabdaland onwards.

Comparative Analysis of Routes

Central Route
The Central Route is likely to be

Eastern Route
The Eastern Route is likely to be

Western Route
The Western Route is likely to be

longer than the Western Route,

longer than the Central Route and the shorter than the Central Route and the

but shorter than the Eastern

western Route.

Eastern Route.

The alignment will open up

Except for backward areas of south

The alignment will open up economic

economic opportunities for a vast

and central Baluchistan, northern

opportunities for a vast swathe of

Route.

band of abjectly backward regions Sindh and southern Punjab, more than abjectly backward regions of the
of the country.

half the distance will pass through

country.

relatively developed areas of Central

Punjab.
Except for the Gwadar-Ratodero

Except for the Gwadar-Ratodero

Except for the Gwadar-Khuzdar

section, a road pre-exists, but is

section, a road pre-exists, but most

section, a road pre-exists, but is

narrow and low quality, and will

sections will need to be widened and

narrow and low quality, and will need

need to be re-laid in its entirety.

re-laid to cater to the heavy traffic in to be re-laid in its entirety.

terms of volume and load

Security costs will be higher on

The Ratodero-Hasanabdal section is

Security costs will be higher on

account of insurgencies in

relatively secure; as such, the

account of insurgencies in Balochistan

Balochistan and FATA.

alignment is likely to entail lower

and FATA.

security costs.
The alignment passes through all

The alignment completely bypasses

The alignment passes through only

the provinces of Pakistan and

the province of Khyber-Pakhtunkhwa

two provinces of Pakistan.

likely to command broad political

and is likely to emerge as a new

SWOT ANALYSIS
Strengths
Weaknesses
Opportunities
Threats

Logistics Requirements
Logistics is the backbone of a supply chain network. It is used as inbound

and outbound transportation.

In CPEC the success of the project depends on the efficiency of SCM and
logistics
The road, railways, shipping industryandNLCshould all complement
one another instead of focusing on competition.
Modes of transportation
Trucks
Railway
water
Airways
Pipeline
Intermodal
Tailored transportation
3plp

Conclusion

The CPEC appears to be a very crucial project

for both the countries. For China it provides an

alternate secure route to import Energy and
find new markets for its goods and services.
For Pakistan it helps counters Indian influence
in the region, position itself as a major transit
point connecting Eurasian region with South
Asia and South East Asia and provide a much
needed base to kick start its economic growth.

Recommendations
1. Government must make decision on the basis of economic

gains and multiplier impact on the economy

2. Route prioritization must decide on the basis of population
density (directly relates to population displacement), productive
land under the route, loss of production
3. Strategic importance and its relevance for Pakistan in short
and long run must give due importance
4. Transparency must be ensured for smooth functioning and
equal distribution of benefits
5. Government must use the existing institutions (Council for
Common Interest) for resolving all controversies related to CPEC
Last, but the most important aspect, all stakeholders must have
good understanding of Chinese needs, as China is investor of
the project.

References

Pakistan Times
Karachi to Lahore Motorway Project Approved". Dawn. The Dawn Media Group. 2014.
5 September 2014 3 Railway track project planned from Karachi to Peshawar".
Pakistan Tribune. 13 November 2015.
Retrieved 6 March 2016 and nation.com.pk/national/22-Jun-2015/cpec-may-get-extra-billion-dollars

"CPEC may get extra billion dollars"] Pakistan: The Nation. 22 June 2015.
Retrieved 11 December 2015. 4 Zhen, summer (11 November 2015). "Chinese firm takes control of
Gwadar Port free-trade zone in Pakistan". South China Morning Post.
Retrieved 11 December 2015. Shah, Saeed (9 April 2015). "China to Build Pipeline From Iran to
Pakistan". The Wall Street Journal.
Retrieved 6 December 2015 6 The Jakarta Post 7 Malik, Ahmad Rashid (7 December 2015). "A
miracle on the Indus River". The Diplomat.
Retrieved 11 December 2015 8 Electricity shortfall increases to 4,500 MW". Dunya News. 29 June
2015.
Retrieved 11 December 2015 9 Kugelman, Michael (9 July 2015). "Pakistan's Other National Struggle:
Its Energy Crisis". The Wall Street Journal.
Retrieved 11 December 2015 10 Parliamentary body on CPEC expresses concern over coal import".
Daily Time. 19 November 2015.
Retrieved 11 December 2015.
CPECDevelopment projectElectricityEnergy CrisisGwadar PortHighwaysHubco Gaddani coal project
pending projectsProjectsrailwayssolar projects
CPECDevelopment projectElectricityEnergy CrisisGwadar PortHighwaysHubco Gaddani coal projectpending projectsProjects
railwayssolar projects
https://timesofislamabad.com/cpec-list-of-early-harvest-projects-to-be-completed-by-2018/2016/08/22/
https://en.wikipedia.org/wiki/China%E2%80%93Pakistan_Economic_Corridor
https://
www2.deloitte.com/content/dam/Deloitte/pk/Documents/risk/pak-china-eco-corridor-deloittepk-noexp
.pdf

Thank you

Questions?