Foreign investors may be excluded from a container port project on Shanghai's Yangshan island.
The municipal government preferred to build the first phase itself, said Tung Chee-chen, chairman of Orient Overseas (International), which has shown interest in the development.
Mr Tung said foreign investors probably had little chance of participating in this phase of the development.
The proposed 52-berth project, which will take 20 years to complete, provides a port on reclaimed land at the mouth of the Yangtze River.
The Shanghai government hopes it will help transform the city into one of the world's largest container ports.
The first phase, expected to begin construction this year, comprises five berths and a 27km causeway and bridge to the Pudong New Area. It is scheduled for completion in 2005.
Previously, Hong Kong-listed red chip Shanghai Industrial Holdings, controlled by the Shanghai municipal government, was interested in the project.
