Pakistani officials have announced that China will take control of operations at the Port of Gwadar in the western region of the country not far from the Iranian border, to build a naval base, Exim News Service reports.

While China constructed the Gwadar port, it is currently operated by PSA International, a Singaporean state-controlled company, which has a 40-year lease, though the contract has been challenged in court.

The port is well placed for trade with Central Asia and as a supply point for Chinese oil imports, but is currently underused, with domestic political conflict hampering its commercial potential.