Shanghai Port to Spend $2.9b on Expansion

Shanghai Port to Spend $2.9b on Expansion
(Cargonews Asia) Monday, December 8, 2008

Shanghai, already the world's second-busiest container port, completed the third phase of its deep-water and will spend roughly US$2.9 billion on further expansion despite the global economic crisis, the South China Morning Post reported.

With the end of construction of the third phase of the Yangshan Deepwater Port, its total capacity would be 9.3 million TEUs a year, with 16 berths stretching over 5.6km.

The further expansion, from next year, aims to surpass Singapore to become the world's largest container port. The city overtook Hong Kong last year.

Still, Shanghai has cut its target for container traffic to 28.5 million TEUs from 30 million as the global crisis has hit the city's shipping industry. It still expects to retain its position as the world's number two container port based on TEUs. Shanghai's port handled around 26 million TEUs of cargo last year, up 20.4% from 2006.

Work on the western part of the Yangshan port, due to start next year, will include 10 to 12 additional berths capable of handling seven million TEUs of cargo a year after its completion in 2013.

Shanghai was aiming for Yangshan port to have nearly 30 berths by 2020, almost half of the capacity of the Yangtze Delta area. At present, Yangshan contributes around 30% of the city's total port capacity.