Pakistan cuts Gwadar fees to attract Iran

Pakistan cut fees at Gwadar port this week as it tried to pull in more transit cargo tied to Iran and to disruptions around the Strait of Hormuz. Maritime Affairs Minister Junaid Anwar Chaudhry announced the tariff changes on May 11, saying the revised schedule was meant to increase transit and international transshipment traffic through the Chinese-built port. The move came as Islamabad continued to present itself as a channel for U.S.-Iran dialogue after earlier talks hosted in Pakistan. It also came as Russia's foreign minister publicly said India, not Pakistan, appeared better placed for a longer diplomatic role. ### Which Gwadar charges did Pakistan cut? May 11 was the date Pakistan's maritime ministry unveiled the new tariff package for Gwadar. The ministry said berthing fees for container vessels carrying transit or transshipment cargo were reduced by 25%, charges on international transshipment containers were cut by 40%, and charges on transit container cargo were lowered by up to 31%. One month of free storage for general cargo was also introduced, compared with a standard five-day allowance at other Pakistani ports, according to Pakistani media reports citing the official statement. Junaid Anwar Chaudhry said the revised policy was designed to increase transit and international transshipment traffic, attract global shipping lines and raise overall port activity. Nikkei Asia reported the fee cuts were aimed in part at cargo moving between Iran and third countries as Pakistan sought to position itself as a regional trade hub. ### Why is Iran central to a Pakistan port story? (brecorder.com) Iran matters because Pakistan is trying to sell Gwadar as an outlet for cargo going into and out of its western neighbor. Nikkei Asia reported Pakistan was offering incentives to foreign carriers bringing goods between Iran and third countries, looking beyond the immediate U.S.-Iran conflict toward postwar trade flows. (thenews.pk) Last week, Pakistan also opened six overland corridors to Iran to clear stranded cargo and provide alternatives to routes affected by Hormuz disruptions, according to reporting carried by MSN. That step and the Gwadar tariff cuts point to the same operational goal: channeling freight through Pakistani territory and ports when Gulf shipping routes are under pressure. (asia.nikkei.com) ### How does this connect to Pakistan's mediation push? April 12 was the date Pakistan hosted U.S.-Iran peace talks in Islamabad, according to Nikkei Asia's prior reporting on the negotiations. Pakistan has since sought to preserve a diplomatic role even after those talks ended without agreement on major issues including Iran's nuclear program and the Strait of Hormuz. Islamabad's commercial moves around Gwadar have unfolded alongside that diplomacy. (msn.com) Nikkei Asia reported earlier this month that Pakistan saw possible longer-term gains from mediation, including the prospect of cheaper Iranian gas and oil if sanctions were eased. ### What did Lavrov say about India and Pakistan? Sergey Lavrov said in Delhi that Pakistan was helping establish dialogue between the United States and Iran to resolve urgent problems, according to multiple reports summarizing his remarks. (asia.nikkei.com) He added that India could play a long-term mediator role because of its diplomatic experience and standing. Those comments placed Pakistan and India in different lanes. (asia.nikkei.com) Pakistan was described by Lavrov as useful in immediate dialogue, while India was presented as a candidate for a broader, longer diplomatic role. ### What will show whether the Gwadar fee cuts work? Gwadar's next test is traffic. The new tariff schedule is already in place, and the immediate measure will be whether shipping lines and cargo owners reroute transit or transshipment volumes through the port. (msn.com) Pakistan's offer includes cheaper berthing, lower container charges and longer free storage, all aimed at making Gwadar more competitive for Iran-linked and third-country cargo. Balochistan will be the place to watch because Gwadar sits on Pakistan's southwestern coast near the Iranian border. (msn.com) Any visible increase in vessel calls, transit containers or use of the newly opened land corridors would provide the first concrete sign that Islamabad's pricing move is drawing the business it is targeting. (msn.com) (brecorder.com)