HK firms urged to invest in Shanghai
By Zhang Yong (China Daily)
Updated: 2004-05-12 08:59

Shanghai's port administration chief yesterday urged Hong Kong businesses to invest in the city's port construction and operation by setting up wholly owned companies.

Shanghai Port Administration Bureau Director Xu Peixing issued the invitation to Hong Kong firms on the sidelines of yesterday's Shanghai-Hong Kong Port Logistics Seminar.

"Hong Kong enterprises can invest in Shanghai's port business and they can set up wholly owned companies in Shanghai," said Xu.

He noted that Hong Kong businesses will have the opportunity to operate berths at the Yangshan Deepwater Port, expected to be the world's largest container port.

Five berths will be completed by the end of next year during the first phase of the project, with a further four being finished by the end of 2006, according to the local port authority.

"We can assure that the operation of Yangshan port will not be monopolized, we will stick to public bidding practices by inviting domestic and international companies," said Xu.

The local authority has given the go ahead to the Shanghai International Port (Group) Co Ltd to operate the first five berths at Yangshan Port.

Hong Kong enterprises have showed great enthusiasm in joining Shanghai's port business since the implementation of the Closer Economic Partnership Arrangement (CEPA) on January 1, said Hong Kong Economic Development and Labour Secretary Stephen Ip.

So far, 135 Hong Kong enterprises have applied for government licenses to conduct logistics and marine transportation businesses in Shanghai, the secretary revealed yesterday.

"Originally, Hong Kong's businesses were mainly focusing on investing in port businesses in the Pearl River Delta region... now most of them are showing great interest in the Yangtze River Delta," said Ip.

Shanghai port recorded an almost 20 per cent year-on-year increase in cargo to 316 million tons in 2003. It handled 11.3 million TEU (twenty-feet equivalent unit) containers, 134 per cent of its designed capacity, with this year's volume is expected to exceed 13 million TEUs, according to the local port authority.

Shanghai is now the world's third-largest container port and fourth-largest port overall, driven by the rapid development of foreign trade in the Yangtze Delta and the vast hinterland region.

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