The goal to turn Shanghai into such an aviation center was set by the Civil Aviation Administration of China last year, since the city is the first on the Chinese mainland with two civil airports.

"It's a strenuous and pressing task but we must do it because the world's aviation competition is fierce," said Xia Keqiang, chairman of Shanghai Airport (Group) Co Ltd.

At present, countries such as Japan, the Republic of Korea and Singapore, are also expanding their airports in a bid to enlarge their market shares in the rim.

Xia said a leading group will be set up to draft a "scientific and practicable" plan which will be delivered to the city government for examination and approval in March.

Under the plan, Xia said, a second runway at Pudong International Airport will be built by 2003 to handle the increasing volume of passengers.

The new airport, which was put into operation on October 1, 1999, has only one runway, which had to handle 5.6 million passengers last year as a result of the shifting of many flights from Hongqiao Airport.

The second runway is expected to cost more than 2 billion yuan (US$244 million) and the local airport authority is seeking co-operation from foreign investors.

Xia said the airport authority is stepping up the preparatory work for the construction of the second runway even though the project has not yet been included in the city's 10th Five-Year Plan period (2001-05).

"If the city wants to become an aviation pivot on the Asian-Pacific Rim, the airport must have the second runway," he said.

The airport authority will build special parking areas for planes carrying VIPs attending the annual meeting of the Asia-Pacific Economic Cooperation Forum in October. An express delivery center will also be set up.

"If Shanghai succeeds in its application for holding the 2010 World Expo, which will be decided in 2002, construction on the airport will be stepped up," Xia said

(China Daily 01/02/2001)