Annual container throughput will reach 4.6 million TEUs (20 feet equivalent unit) this year and 6.5 million TEUs by 2005.

The city will invest 15.6 billion yuan (US$1.9 billion) in 13 construction projects, including Yantian Port Phase 3 and Shekou Port Phase 2, to increase its container capacity in the coming five years.

This figure makes up more than one-fourth of the nation's total investment in the port industry and most of it will come from overseas funds, especially from Hong Kong, according to Li Chuan, spokesman for the Shenzhen Municipal Port Authority.

By 2005, Shenzhen will have 19 more wharf berths and will set up a comprehensive harbor network, he said.

At present, the city has nine commercial ports and 128 wharf berths of over 500 tonnage, among which are 10 special container terminals and 39 deep-water berths of over 10,000 tonnage.

A total of 29 domestic and overseas large shipping companies have developed their business here and have opened 53 international container shipping lines.

Shenzhen began building its first port in the late 1979. Backed by the continuous growth in trade both in the Pearl River Delta and neighboring Hong Kong, Shenzhen has experienced a booming development. Its container throughput alone has enjoyed an average annual growth rate of 73.9 percent over the last 10 years.

A total of 18 billion yuan (US$2.2 billion) has been put into port construction and related facilities over the last 20 years, sources with the port authority said.

In 2000, Shenzhen ports reached a cargo throughput of 56.9 million tons, an increase of 22.2 percent over 1999. The container throughput, in particular, reached 399 million TEUs and pulled in 23.9 billion yuan (US$2.9 billion), up 33.8 percent from that of the previous year.

It ranks eighth among domestic coastal ports and has successfully made its way into the top 10 international container terminals.

"The introduction of foreign funds and advanced management, the city's unique location and the competitive loading costs all help push the sector forward," said Li.

Yantian international container terminal, a joint-venture port involving the Hong Kong-based Hutchison Whampao Group and the Shenzhen-based Yantian Port Group, has become the largest container terminal in the city, accounting for half of the total throughput.

Loading costs in Shenzhen are about 60 to 70 percent lower than in Hong Kong.

However, Li, the port authority spokesman, thinks Shenzhen's ports cannot replace Hong Kong's "freedom ports," as Hong Kong still outpaces Shenzhen in many areas such as more open foreign trade policies and a much simpler customs inspection process.

"The two sides will assist and benefit each other," said Li. "Cooperation should be enhanced in the future," he added.

(China Daily 03/23/2001)