Shanghai Merges Economic Zones

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SHANGHAI, May 8 – In a move aimed at streamlining the city’s shipping, business and manufacturing industries, the local government is combining the Nanhui District with the Pudong New Area under one government entity.

The partnership of the Yangshan Deep-water Port and the Waigaoqiao Free Trade Zone will lead to better port and shipping policies in addition to giving companies registered in the Waigaoqiao Free Trade Zone more access to land in Nanhui District.

Yang Zhouyi, Secretary-General of the Development and Reform Research Institute for Pudong, told Shanghai Daily that the merger will give Pudong more land for industry to expand.

Yang added, The advanced manufacturing industry and the modern service sector will be able to set up in the new district, speeding up urbanization. The transport of cargo through inland waterways instead of highways will also be facilitated now that the two districts are merged.

A proposal has also been submitted to construct a metro line that will link Waigaoqiao and Lingang New City. The Waigaoqiao Free Trade Zone is almost full and new investment is now being routed to the 300 square kilometer Lingang New City with its special function zones that includes  a logistics park and heavy machinery park. .

“This will make easier for city residents to go to work in the New City and an increasing number of companies will be willing to set up offices in the district,” Yang said. “We will be able to lure more higher-end service providers and big shipping groups to be located in Lingang New City and this will do more benefit than raising the throughput of containers at the ports of Shanghai.”

The merging to the two districts will allow for cargo transport through inland waterways instead of highways.