Muhammad Waseem Siddiqui

IM-038

BUSINESS
OPPORTUNITIES IN CPEC

2015-16
NED UNIVERSITY OF ENG & TECHNOLOGY
 TABLE OF CONTENTS

1. INTRODUCTION TO CPEC.......................................................................... 2
2. CPEC A CORRIDOR OF BUSINESS OPPORTUNITIES .................................... 2
3. CPEC FOR INDUSTRIAL & MANUFACTURING ............................................ 2
3.1 DISTRIBUTION & LOGISTICS...................................................................... 3
3.2 WAREHOUSING & PETROLEUM STORAGES .............................................. 3
3.3 SMALL VENDOR BUSINESS FOR AUTOMOBILE INDUSTRY ......................... 3
4. OTHER OPPORTUNITIES BY CPEC ............................................................. 4
4.1 CPEC POWER PROJECT ............................................................................. 4
4.1.1 OPPORTUNITIES .................................................................................... 4
4.2 CPEC GAWADAR DEVELOPMENT ........................................................... 5
4.2.1 GWADAR DEVELOPMENT MAP.............................................................. 5
4.2.2 OPPORTUNITIES .................................................................................... 5
4.3 CPEC ROAD PROJECT ............................................................................. 6
4.3.1 OPPORTUNITIES .................................................................................... 6
4.3.2 HIGHWAYS NETWORK OF CPEC ............................................................. 6
4.4 CPEC RAIL PROJECT ............................................................................... 6
4.4.1 OPPORTUNITIES .................................................................................... 6

1
 1. INTRODUCTION TO CPEC
CPEC is a collection of infrastructure projects that are currently under construction
throughout Pakistan. Originally valued at $46 billion, the value of CPEC projects is worth $62
billion as of 2017. CPEC is intended to rapidly modernize Pakistani infrastructure and
strengthen its economy by the construction of modern transportation networks, numerous
energy projects, and special economic zones. (1) China-Pakistan Economic Corridor is a
framework of regional connectivity and it will not only benefit China and Pakistan but will
have positive impact on Iran, Afghanistan, India, Central Asian Republic, and the region. The
enhancement of geographical linkages having improved road, rail and air transportation
system with frequent and free exchanges of growth and people to people contact,
enhancing understanding through academic, cultural and regional knowledge and culture,
activity of higher volume of flow of trade and businesses, producing and moving energy to
have more optimal businesses and enhancement of co-operation by win-win model will
result in well connected, integrated region of shared destiny, harmony and development. (2)
China Pakistan Economic Corridor is journey towards economic regionalization in the
globalized world. This Corridor is a hope of better region of the future with peace,
development and growth of economy. (2)

2. CPEC A CORRIDOR OF BUSINESS OPPORTUNITIES

Enormous business opportunities being created by China – Pakistan Economic Corridor
(CPEC) are knocking the doors of entrepreneurs across the globe. Pakistan will be a
beneficiary by having world class road and rail infrastructure, communication network,
surplus energy, special economic zones equipped with all the desired facilities and above all,
a large regional market of around three billion people. Pakistan is rich in natural
endowments, like minerals, fertile agricultural land irrigated through one the largest canal
system, rains and tube well; five season, deserts, mountains; a very hard working dedicated
cheap labour force and deep sea ports of Karachi and Gwadar. Government of Pakistan is
establishing a number of special economic zones and offering long-term liberal tax regime
to the investors who will establish business units in those zones. (3)

3. CPEC FOR INDUSTRIAL & MANUFACTURING

As an industrial & manufacturing engineer and entrepreneur there are many business
opportunities created by the China Pakistan economic corridor. As an industrial engineer it
is important to understand supply chain management to start any business and for its
growth supply chain principles are necessary, so I have certain ideas related to supply chain
which can be used to start a business in CPEC. Some of them are described below; (4)

2
  Distribution & Logistics.
 Warehousing & Petroleum storages.
 Small Vendor business for Automobile Industry

3.1 Distribution & Logistics

Pakistan has always stressed the need of a world class logistics and transport infrastructure
for the speedy movement of goods and business in the region and since the Economic
organization is formed to boost the trade between Central Asian countries within its limited
markets and export China-Pakistan Economic Corridor (CPEC) is a major initiative that would
help to achieve this objective. It is a great business opportunity for young entrepreneur to
start a distribution network that will transport goods from one location to another and
create business in distribution & Logistics. (4)

3.2 Warehousing & Petroleum Storages

In transport and storage, the recently unveiled China’s One Belt One Road (OBOR) plan aims
to build a nationwide logistics network, and enlarge the warehousing and distribution
network between major cities of Pakistan with a focus on grains, vegetables and fruits.
Storage bases will be built first in Islamabad and Gwadar in the first phase, then Karachi,
Lahore and another in Gwadar in the second phase, and between 2026-2030, Karachi. It is
another great opportunity to make private and public warehouses for petroleum storages
there and generate business.
Cold supply chain is another issue and due to lack of cold-chain logistics and processing
facilities, 50% of agricultural products go stale during harvesting and transport. For
agriculture, the OBOR plan outlines an engagement that runs from one end of the supply
chain all the way to the other. So entrepreneur can start their Logistics companies that will
operate a large storage and transportation system and can invest in warehouses, logistic
centres and much more for consumption in Pakistani market and export. (4)

3.3 Small Vendor Business for Automobile Industry

CPEC plans also recommends that Pakistan develop auto and auto parts assembly industry
due to the proximity of Karachi and its ports and due to the introduction of CPEC in
Pakistan, the demand of heavy vehicles is expected to grow quickly and manufacturers are
flocking to Pakistan to capitalize on this. It is estimated that at least 100,000 additional trucks
would be needed to transport construction materials, movement of export-import trade and
increased volume of goods. So a small business can be started for Heavy Vehicle industry such
as Hinopak that produces Trucks in order to meet the demand of heavy vehicles. (4)

3
 4. OTHER OPPORTUNITIES BY CPEC

The opportunities described above was related to the Industrial and Manufacturing field
and there are many other business opportunities in different projects of the CPEC which are
described below;

 CPEC Power Project

 CPEC Gawadar Development
 CPEC Road Project
 CPEC Rail Project

In each and every project of CPEC there are number of opportunities provided to young
entrepreneurs to cash the opportunity and start their own business.

4.1 CPEC Power Project

There are total of 21 power projects designed in CPEC which is planned in different areas of
Pakistan.

4.1.1 Opportunities
Certain opportunities are identified in the power projects for entrepreneurs which are:

1. Port Clearances
2. Materials sourcing
3. Construction
4. HR & HRD
5. In-house security

4
4.2 CPEC Gawadar Development

The concept of smart port city is incorporated in Gawadar development project and
currently there are 12 major projects designed in CPEC for development of Pakistan
port.

4.2.1 Gwadar Development Map

4.2.2 Opportunities
Certain opportunities are identified in the Gwadar development projects for entrepreneurs
which are:

 Port Clearances/cargo H.
 Oil Storages
 Real Estate, Construction
 Costal Tourism
 Hospitality Industry
 Ship building & Maintenance, Maritime

5
4.3 CPEC Road Project
The road project for CPEC consist of 11 nodes and several alignments from Karachi to
Peshawar.

4.3.1 Opportunities

 Facilitation Services
 Tourism Development
 Industrial Parks
 Logistics Hubs
 Mineral Parks
 Petroleum storages

4.3.2 Highways Network of CPEC

4.4 CPEC Rail Project

The CPEC rail project consist of building a 1820 Km Rail network from Peshawar to Karachi
and it provides certain business opportunities for entrepreneurs.

4.4.1 Opportunities

 Cargo Clearance
 Cargo Handling
 Cargo Storage
 Passenger Services
 Dry-port
6