Foreign Investment in the Yangshan Deep-sea Port

By Li Qiang, Freshfields Bruckhaus Deringer, Shanghai

China's leaders consider the Yangshan deep-sea port project as a key component in Shanghai's bid to become a leading global shipping and logistics centre in north-east Asia. When the port is fully developed in 2020, the shores of the Yangshan Islands, 26 kilometres off the coast of Shanghai's southern district of Nanhui, will be lined with over 50 berths capable of accommodating class 5 and class 6 container ships having drafts of up to 15 metres. The entire project will be completed in three phases at a total estimated cost of US$12 to $18 billion. The construction of Phase 1 of the project, slated for completion in 2005, is already in progress. As part of the port project, a new port town together with a new logistics park, and perhaps even a new free trade zone, will be created in Nanhui district.

A number of leading multinational shipping companies and port terminal operators have reportedly expressed an interest in participating or investing in the Yangshan port project.