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DALIAN: Senior officials and shipping experts expect the Dalian Dayaowan Bonded Port Area to open Northeast China up to the outside world.

"The construction of the Dayaowan Port Area will help the cluster of ports in Northeast China compete in the international market," said Wang Zhongyu, vice-chairman of National Committee of the Chinese People's Political Consultative Conference, China's top political advisory body.

"The competition in the international shipping market is fierce. Neighboring countries like South Korea and Japan are also integrating their port-related resources to build international transportation hubs."

Wang made these remarks at a seminar about the construction of the bonded port area.

The State Council approved the establishment of Dalian Dayaowan Bonded Port Area last August. It will be the third such area in the country after Yangshan Port in Shanghai and Dongjiang Port in Tianjin.

According to the development plan, which is awaiting approval by the General Administration of Customs, the port area is expected to go into operation by the end of June. The first phase of construction on the port area has started within a 6.88 square kilometer area designated for the project, said Zhang Shikun, director of the Dalian Administration of Bonded Area.

Soon after reports about the bonded port area were made public, logistics giants from around the world, including the US-based Pyologis, have become involved with the port construction, Zhang said.

"The bonded port area will one day be turned into a free trade zone once we have completed several logistics projects relating to oil, ore, grain and autos. We also have to enlarge the Dayaowan Container Terminals, the existing bonded area and export processing area," Zhang said.

Located in the center of Northeast Asia and with transportation facilities linking the cities in Northeast China, Dalian is an ideal place to build an international shipping hub, the city's mayor, Xia Deren, said.

"We'll play a leading role in opening up the region and revitalizing its traditional industries," Xia said.

He added that the construction of the bonded port would create economic opportunities for the cities in the hinterland of Northeast China. "We have worked together with our partners in the region to streamline policies and services to be available in the port area," Xia said.

Dalian has established several land ports in recent years in an effort to expand the operations of the bonded area for export-oriented enterprises.

To improve the handling capability of the cluster of ports in Liaoning Province, the government launched a program last year to speed up the refurbishment of the five ports along the coasts of the Bobai and Yellow seas, said Li Keqiang, secretary of the Liaoning Provincial Committee of the Communist Party of China.

(China Daily 01/10/2007 page4)