BEIJING, Jan. 12 -- The new year is crucial because the preliminary framework of an international shipping centre is taking shape in Shanghai, according to top port officials.

    The officials reviewed here yesterday the prosperous achievements the port made in 2004.

    In 2004, Shanghai overran Rotterdam of the Netherlands and became the second largest port in terms of cargo handling after Singapore.

    At the same time, Shanghai ranked the third largest port in terms of standard container transportation by handling 14.554 million TEUs (twenty-foot equivalent unit), after Hong Kong and Singapore.

    Shanghai opened 33 routes for standard containers last year and now it has business relations with more than 500 ports in over 200 countries and regions in the world.

    The first phase of the Yangshan deep-water port is expected to put five berths in operation at the end of this year, which "marks the formation of the framework," said Xu Peixing, director of Shanghai Municipal Port Administration.

    "Naturally a lack of deep-water berths has obviously been hindering Shanghai's development on the world stage," he said. "The present construction project in Yangshan will help the city catch up."

    The first phase of the project will offer a coastline of 1,350 metres, with a water depth of 15 metres, which will enable container vessels of 8,000 TEUs to call at and increase the city's handling capacity by 2.2 million TEUs a year.

    The second phase of the project is to be completed in 2006, providing four more berths. By 2010, a total of 19 berths will be finished as the city grows into a name-worthy international shipping centre, Xu said.

    He also said the national customs authority is working on favourable policies for the deep-water port to facilitate the realization of Shanghai's ambition.

    The city has also worked out a plan for the development of its inland waterway transportation and with government investment of over 9 billion yuan (US$1.09 billion), most of its rivers will be rebuilt to allow in container vessels.

    (Source: China Daily)