Lianyungang, a northern port city in Jiangsu province, is racing to build an international port after winning State approval to construct a 300,000-dwt (deadweight ton) deepwater channel.

Analysts said the city, situated north to the Yangtze River Delta and south to the Bohai Rim, should take full advantage of its geography.

On June 10, the State Council approved the development strategic plan of Jiangsu, a major part of which is about building Lianyungang Port into a Euro-Asian transportation hub.

"This strategic plan is the best development opportunity for Lianyungang, and we are confident of making rapid strides under the guideline," Wang Jianhua, Party secretary of Lianyungang, told reporters.

According to the plan, Lianyungang will build one 300,000-dwt channels and a 300,000-dwt berth for handling crude and ores.

Lianyungang Port, situated north to the Yangtze River Delta and south to the Shandong Peninsula, is among the first group of coastal cities to open up.

Analysts said Lianyungang should associate its development with the neighboring Yangshan Deep Water Port in Shanghai and existing Ningbo Port.

"More important is to differentiate their functions and focus to avoid repetitive development or malicious rivalry," said Wei Fang, analyst, GoldState Securities.

According to Wang, the Lianyungang Port is targeted for commodity shipments within a specific region.

Wang Jianhua also stressed on the cooperation between Lianyungang Port and Shanghai Port. "We will develop a regional all-around port, but it serves as part of Shanghai Port in the northern tip," he added.

Song Weiya, analyst, Greatwall Securities, said most of the ports in China have felt the pinch of oversupply due to the global economic downturn.

(China Daily July 2, 2009)