The opening of the first phase of Shanghai's multi-billion yuan Yangshan port development will be delayed by two years, dealing a blow to the city's short-term ambitions to be northeast Asia's biggest shipping hub.
Shanghai's new mayor, Han Zheng, was quoted at the weekend as saying the city would complete the first-phase construction of what could be the world's largest deep-water container port by 2007.
Government officials as recently as last week were insisting the much-needed first phase of the facility would be operational be 2005, as scheduled.
An official involved in the project said the delay was caused by difficulties with construction and a change in design, which expanded the number of berths from five to nine.
'We will finish the design by 2006, but construction is difficult so that might be delayed until 2007,' said the official from the No 3 Navigational Engineering and Design Institute.
Industry executives said they were aware of the delay, which arose from lack of equipment for deep-water piling.