Stormy waters as port takes shape

The controversial US$16 billion project is Shanghai's bold attempt to become the dominant regional handler

Shanghai is pushing ahead with construction of the world's largest container port even as the project is buffeted by lingering controversy.

Officials hope the Yangshan Deep Water Port will transform Shanghai, already the world's fourth busiest container port, into an international cargo hub to challenge Hong Kong and Singapore.

But neighbouring Zhejiang province questions the need for the project, which will compete with its main port, while some officials have raised concerns over the difficulties of construction and the estimated cost of US$16 billion.

At the mouth of Yangzhou Bay, dozens of boats cluster around small islands, dredging and driving pilings for a bridge linking to the port, which will be located on a group of islands 30km offshore from the city. When it is finished in 2020, the Yangshan Port will have more than 30 berths with an annual handling capacity of 13.4 million 20ft equivalent units (TEUs). The project allows for a total of 50 berths in the future, bringing the capacity to 25 million TEUs.

Zhejiang offered the land for the project since the future site of the port - a group of more than 20 tiny islands in Hangzhou Bay - belongs to the province, not Shanghai. In return, Zhejiang will receive a 10 per cent stake in the port company and direct competition with its own deepwater port, Beilun, 80km south of Yangshan in Ningbo city. Ningbo was the world's 31st biggest container port last year and officials are eager for it to climb in the rankings.