Another Pudong New Area to shape up

The Shanghai Port-based Industrial Zone (Lingang Industrial Zone), managed by the Shanghai Lingang Economic Development (Group) Co Ltd, is expected to promote the city's competitiveness and further boost its economic development.

The zone is regarded as the outcome of strategies implemented by the Shanghai municipal government.

Covering an area of 200 sq km, the zone is regarded as one of Shanghai' important equipment manufacturing development bases for the 11th Five-Year Plan (2006-10).

The zone is expected to become another Pudong New Area, an economic growth engine in the metropolis attracting world's attention.

Located in the newly established Lingang New City, the zone is 25 km away from Pudong International Airport to the north and 32 km away from the Yangshan Deepwater Port in the south, connected by the Donghai Bridge.

It features easy access to five modes of transportation including ocean, air, river, highway and railway from the southeastern tip of Shanghai.

The zone is home to the Luchaogang Railway Container Terminal, the first such terminal to be completed and operated in Shanghai, while the Ping'an Railway Yard is near the zone.

The terminal and the yard connect the zone to national railway networks as well as other railway container terminals, which is one of the advantages of the area.

The zone expects to build an inland terminal depot covering 1.2 sq km and connected by the Dazhi River and inland rivers in the Yangtze River Delta. The depot could handle barges with 1,000-tonnage loading capacity .

Beginning in 2003 and expected to be completed by the end of this year, the first-phase project covers an area of 57 sq km, including a 36-sq-km equipment manufacturing park and a 21-sq-km logistic park (including land area of the Yangshan Bonded Port).

With a total investment of more than 30 billion yuan, the zone has maintained a good growth momentum for further development.

In view of the national strategy of revitalizing equipment manufacturing bases, Shanghai Lingang Economic Development (Group) Co Ltd has made great efforts to push the development of the port-based zone.

The zone's achievements to date include the settling of equipment industries in the area, enhancing independent innovation and improvement of relevant facilities.

The zone expects to set up a strategic alliance with well-known domestic as well as overseas companies, including China State Shipbuilding Corporation, China Shipbuilding Industry Corporation, SAIC Motor Corporation Ltd, Shanghai Electric Group, Volvo, Penta, Caterpillar, Maersk, Mitsui, ThyssenKrupp, Siemens, Collier International, and Konecranes Company Ltd.

After cooperating with Lingang Group for many years, Doug Frye, CEO of Canadian Colliers International Co, world's top integrated real estate service provider, said, "I believe Lingang will become the new icon among the best logistcs and manufacturing parks in the world's leading ports."

Lingang also aims to attract more projects to promote greater international cooperation.

These projects are all high value-added programs playing a leading role in the sector and expected to import more research and development organizations in relevant sectors.

Further, the zone will step up efforts to build sustainable development bases in the energy and communication industries.

Equipment manufacturing

As planned, five equipment manufacturing bases are being built in the zone, which include an entire car and spare parts manufacturing base, a key large ship spare parts production base, as well as bases to manufacture equipment for power generation and transmission, ocean engineering, and harbor machinery and logistics.

The government will provide independent innovation projects with more support in site selection, land and related services, so as to encourage the ability for independent innovation, creating a better investment environment for the companies as well as their personnel.

The zone is focusing on seven industry projects in accordance with the requirements of the central government and improving its capacity of developing more projects such as aircraft and aircraft engine, rail transit and airborne equipment manufacturing.

The zone's structural framework is that of an equipment manufacturing base, which includes the manufacture of automobiles and spare parts, power generator and transmission equipment, and ocean engineering equipment, all of which point toward the zone's independent innovative ability.

Aiming to build itself into an international modern equipment manufacturing base, the zone lays emphasis on the integration of different industries, including advanced manufacturing, modern distribution, research and development, education and training, export processing and trading, which are all expected to help the zone develop into a value-added modern manufacturing and hi-tech industry base.

With the establishment of residential facilities, the zone is also concerned about providing relevant services to attract more companies and improving its ability of integrating international industry and supply chains, as well as all kinds of resources, for industrial development.

Efforts are on to upgrade infrastructure and supporting facilities, as well as logistic, industrial and residential facilities.

The zone looks to build a State-level equipment manufacturing base in Shanghai, in keeping with the central government's policy of reviving such bases.

In addition, Lingang has logistics facilities immediately available for lease and available land for new investments from companies in the modern equipment industry.

A unique geographical location, excellent economic advantage in the domestic market and preferential government policies spell great potential for the zone, which seeks to grasp unprecedented opportunities and meet new challenges in its quest to construct a high-end equipment manufacturing base.

(China Daily 11/27/2007 page24)