Shanghai to establish a huge economic zone
Friday, December 27, 2002
biz.scmp.com
ANNETTE CHIU
Shanghai is planning to boost its role as a major logistic hub in Asia by setting up a massive economic zone bridging Pudong Airport and the multi-billion dollar Yangshan deep-water port project in Zhejiang province.
The Coastal Comprehensive Development Zone was initially targeted for Nanhui district, in southeast Shanghai, and at the mainland end of the 31km bridge connecting with Yangshan Port, a Shanghai government official said.
Yangshan will easily be the biggest port in China when it is completed in 2020.
The development will encompass 80 to 100 square kilometres and include a variety of logistics-related facilities and high-technology manufacturing plants.
Feasibility studies commissioned by the Shanghai municipal government and conducted by three international consultancy firms were completed two weeks ago, and the project was being discussed by senior government officials, the official said.
The total investment required for the project is unknown.
"I think the project will be announced before the Spring Festival next year [February] and will be discussed by the National People's Congress in March. Construction will probably be started in the first half of 2003," the official said.
"Shanghai is set to be a major logistics centre in China. But apart from container terminals, it also needs manufacturing industry to support the development. It is a systematic plan for how the city will be developed."
A senior Shanghai-based forwarder said the project would be the nerve centre for Yangshan port, the 33-berth project now under construction.
There would be little room for handling empty containers on Yangshan Island and the operation should be stretched to the mainland, where the logistics centre would probably be built, he said.
It will be a multi-functional facility, with logistics facilities such as an ocean freight depot, a free-trade zone, a dedicated bonded area for transshipment cargo and duty-free storage, container operation, warehousing and customs clearing services.
While the huge project had yet to be approved, the forwarder said it was likely to be rubber stamped.
"I don't think the project will be terminated or the whole Yangshan project would be left handicapped," he said.
He said the industry would welcome the project as it would consolidate freight operations and eventually reduce operational costs, while it would also aid Shanghai's bid to become a major logistic hub in Asia.
"Shanghai will have one area to consolidate both sea and air cargo as a free-trade zone and a bonded area will be included in the project," the forwarder said.
"With the large-scale facilities and the free port at Yangshan, Shanghai can become a distribution hub for Asia. Imports will go to Shanghai and then be distributed to Japan, South Korea and Taiwan, by either ship or air."
Manufacturers traditionally used major consumer markets, such as China, to set up distribution and inventory facilities to be close to the buyers, he said.
"They will store 80 per cent of inventory in China and distribute the remaining 20 per cent through the Shanghai to the regional markets," he said.
But he said it would take time for Shanghai to establish its hub status and much was still needed to improve efficiency and develop its transportation network. |
