if the news proves true (no chinese source attests to it yet) it's really significant for both CN and PK strategically.
years ago there was suspicion that CN might trade PK off in improving relationship with IN, or PK got too intimate with the US.
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By expanding its stake in Pakistan's rail sector, China is poised to exploit the country's advantageous geographical position - strategically located at the confluence of South, Central and West Asia.
As a part of its development plan for its transport and communications network, Pakistan Railways has completed a feasibility study of the Chaman-Kandahar section for laying railway tracks between Pakistan and Turkmenistan through Afghanistan. The feasibility study for cost, engineering and design for the construction of a rail link from Gwadar to the existing rail network in Mastung district in Balochistan has also been finalized. The new link to Gwadar port will open up underdeveloped areas of Balochistan for development. The main aim of the venture is to connect the Central Asian republics with Pakistan Railways' network through Afghanistan.
China is going to be the beneficiary of Gwadar's most accessible international trade routes to the Central Asian republics and Xinjiang. By extending its East-West Railway from the Chinese border city of Kashi to Peshawar in Pakistan's northwest, Beijing can receive cargo to and from Gwadar along the shortest route, from Karachi to Peshawar. The rail network could also be used to supply oil from the Persian Gulf to Xinjiang. Pakistan's internal rail network can also provide China with rail access to Iran.
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http://corp.sinopipenet.com/detail-5339086.html