Gwadar is located on the southwestern coast of Balochistan province in Pakistan near the Strait of Hormuz. It was selected in the 1960s as a potential deep-water port site. Phase I of development, funded by China, includes 3 berths and infrastructure and will be completed by 2005 at a cost of $248 million. Phase II will add 9 berths on a BOT basis for $600 million. The port aims to boost trade with Central Asia and provide an alternative to Karachi.