China Review News (CRN) recently reported that, in addition to highways, China and Pakistan have decided to build a railroad connecting Xinjiang Kashgar and Gwadar Port located on the Arabian Sea and at the mouth of the Persian Gulf. CRN stated, “Following the China-Myanmar Oil Pipeline, this project carries a strategic significance. It indicates that China has another channel it can use to have direct access to an energy source in the Arabian Sea which connects to the Indian Ocean region.” China has signed a series of collaboration agreements with Pakistan to build an economic corridor between the two countries. From 2002 to 2006, China invested US$200 million to turn Gwadar Port into a deep water harbor. In February 2013, China Overseas Holdings Ltd. officially gained operating rights to the Gwadar Port.
Source: China Review News, July 21, 2013