Chinese firm to invest $2 billion in Pakistan for the deployment of an optical fiber network over an area of 100,000 kilometres over a period of 8 to10 years.
According to a Gwadar Pro’s report, the cable will be laid from Karachi to Peshawar along the Main Line-1 (ML-1).
Pakistan Railways has inked an agreement with the company Sunwalk Ltd. to allow it to deploy optical fiber cable.
Pakistan Railways has stated in a statement that the Chinese company has deposited Rs205.60 million in advance.
A Pakistani company was also allowed the same facility, which has deposited Rs130 million in advance, Pakistan Railways said.
The agreements are for three years, which could be extended, it added.
CEO of Pakistan Railways Amir Ali Baloch signed the agreements on behalf of Pakistan Railways.
According to an earlier statement of Pakistan’s Ministry of Information and Technology, Sunwalk intends to invest up to $2 billion in Pakistan for the deployment of an optical fiber network over an area of 100,000 kilometres over 8-10 years.
The company has already acquired a Telecommunication Infrastructure Provider (TIP) licence in Pakistan, and has also invested $5 million so far, according to the statement.
Freight Rail: Pakistan can be a beneficiary of BRI’s economic fortunes as Chinese companies are proposing an extension of China-Europe
Freight Rail from Kashgar, China inland city to Gwadar, port city of Pakistan.
“We expect there can be a rail network from Kashgar to Gwadar as it will benefit both China and Pakistan,” said Li Tao, Publicity department of China-Europe Railway Express Xi’an Assembly Line, according to Gwadar Pro.
During interaction with Pakistan’s media delegation in Xi’an, Li said that logistics between the two countries relys on a route from Kashgar to Pakistani cities through road transportation, but such bilateral trade volume driven by roadways is low and scanty.
Compared to rail, road transportation is quite expensive, difficult and slow due to traffic congestion and other road-related hiccups.
Most of Chinese companies are eager to see expansion of China-Europe Freight Rail from Kashgar to Gwadar, he further said.
“The Belt and Road Initiative (BRI), introduced in 2013, bolstered the China-Europe freight train service. The initiative enhanced trade and connectivity between China and countries along the ancient Silk Road, including Europe.
Consequently, the China-Europe freight train service has become a critical part of BRI, facilitating trade and fostering economic ties between the two regions,” he mentioned.
According to China State Railway Group Co., Ltd (China Railway), the freight train service network currently reaches 224 cities in 25 European countries and connects over 100 cities in 11 Asian countries, covering almost the entire Eurasian continent.
Moreover, the trains have transported more than 1.08 million twenty-foot equivalent unit (TEU) containers of goods this year, up 11 percent yearly.