I have to wonder about it as well. The idea that Chinese goods will be trucked over the highway and exported through Karachi seems totally incompatible with reality. Most Chinese manufacturing is on the east coast and it's far cheaper and easier to simply load goods onto container ships and send them where you want them to go. There are good reasons why the old "silk road" routes fell into disuse, modern maritime transport is a lot cheaper, easier, more efficient. Just imagine the number of truckloads of goods required to fill one container ship, and the logistics of moving them from China's industrial east to Karachi...
I can see some goods destined purely for Pakistan using the route, but re-export through Karachi doesn't sound very practical.
Even as a military supply route there would be real limitations. Hypothetically, a prospective Chinese base at Gwadar or elsewhere could be supplied via this route without having to navigate waters that might be controlled by an enemy. That same enemy, though, would easily be able to close the KKH via sabotage or an air strike. Given the geography and isolation and the already demonstrated ability of a single landslide in the right place to force major rerouting and extended closure, it seems a very vulnerable route to be relying on in any strategic scenario.
Certainly the route is potentially useful to China, enough so to make it economically justifiable, but it's probably an exaggeration to call it a strategic game-changer.
PS: What people often fail to realize about these projects is that they form an effective way of moving money from the Chinese exchequer to Chinese companies, and often to favored individuals as well. The government pays Chinese construction companies to do the work. Subcontractors are involved. Lots of payments made, lots of convenient opportunities for some of that $400 million to wander away. If a project doesn't seem to make economic sense (not saying this one doesn't, but on a general level) and money still flies into it, there's a good chance that the project is largely intended to get money moving around so that some of it can be diverted. Corruption is very widespread in China and the amounts involved are large.
Bookmarks