The Gwadar Port is a deep-sea port institution located on the Arabian Sea in Pakistan's Balochistan province, near the Strait of Hormuz. Its potential as a deep-water port was first identified in a 1954 survey by the United States Geological Survey, when the city was still under Omani rule. Pakistan purchased the Gwadar enclave from Oman in 1958 for approximately US$3 million. Construction of the port began in March 2002 and the first phase was inaugurated in 2007 at a cost of $248 million.
The port's primary mechanism is to serve as the southwestern terminal for the China-Pakistan Economic Corridor (CPEC), a massive infrastructure program established in 2015. CPEC, in turn, is a key component of China's Belt and Road Initiative (BRI) and its 21st Century Maritime Silk Road project. The port is under the administrative control of the Maritime Secretary of Pakistan, but its operational control is held by the China Overseas Port Holding Company (COPHC).
The port's strategic purpose is to provide China with an alternative, shorter, and more secure route for energy imports from the Middle East, bypassing the vulnerable Strait of Malacca. By connecting Gwadar to China's Xinjiang region via new road and rail networks, the transit time between Kashgar, China, and the port is significantly reduced. The port is also intended to serve as a gateway for trade with the landlocked Central Asian Republics.
Recent developments under CPEC include the construction of the Gwadar East Bay Expressway, which was inaugurated in June 2022 to connect the port with the Makran Coastal Highway. The port is also being expanded with plans for new multipurpose berths and the development of a 2,282-acre Gwadar Special Economic Zone. Gwadar's development is often compared to the nearby Iranian port of Chabahar, which India has invested in to develop its own regional connectivity.