The total purchase price is 1.4 billion yuan (169.29 million USdollars) to be paid in installments, General Manger of Dazhong Yang Guoping said.

The first group of new luxury buses will be put into operation soon on the bus line linking the city's railway station with Hongqiao Airport, while all buses will be operational by 2006.

Volvo buses are environment-friendly, durable and energy efficient, he said in response to a query as to why the company prefers Volvo.

The 12-year service life and comparatively low maintenance and service costs of the Volvo buses ordered will help reduce the overall operating cost, thus it pays, he added.

Shanghai, China's financial and industrial center, has developed a bus system which covers a total distance of 20,000 km,the most extensive in the world. The system transports an average of 7.5 million passengers daily, more than any other system in theworld.

Its total number of buses exceeds 18,000, first in the world, while the total number of bus lines is second only to Paris.

Yang said Dazhong Transport will increase its buses to 8,000 buses in three years, half of which will be luxury buses like the Volvos.

(Xinhua News Agency December 23, 2002)