In the past five years, the economy and social progress of Shanghai has been growing rapidly - the city maintained double-digit economic growth last year.

World Expo 2010:
opening Shanghai to the global economy

Chen Wenpei, Vice Chairman of Shanghai Computer Users Association and former Officer of Shanghai Trade Point, said, "The 2010 World Expo definitely acts a catalyst, accelerating the area's economic development, and it also offers a framework for sustainable development during 2011 to 2020."

The total investment of the Expo projects is estimated at US$3 billion (HK$23.4 billion), of which 43% will come from government, 36% from private companies and 21% from banks. 58% is earmarked for land acquisition and 42% for construction of facilities such as World Expo Village and World Expo Park. Over 1.4 million overseas visitors are expected to visit the Expo.

Trains, planes and automobiles:
Shanghai's new logistics network

Chen added, "Shanghai Municipal Government's first goal is to establish an international logistics hub by 2010." According to the official statistics, the container throughput of the Shanghai port exceeded 8 million TEUs last year and the annual container throughput for foreign trade in Shanghai accounts for nearly 20% of total throughput in China. In 2007, Shanghai port ranked the first in terms of cargo throughput and the third in terms of container throughput.

Hangzhou Bay Bridge and Sutong Bridge act as important roles connecting Shanghai and the Yangtze Delta. This infrastructure makes Shanghai the dominant logistics hub for the region, and also aids the development of Suzhou, Zhejiang and the rest of the Yangtze Delta.

Chen asserted, "To make Shanghai an international air cargo hub, it will be necessary to make changes in the middle and lower levels of the city's industry chain. This can be done by boosting the development of air freight agencies, consultation and financial services and maritime arbitration industries, giving these sectors a greater share of the high-end part of the value chain. This idea has already aroused attention and measures are gradually being carried out."

Additionally, the government aims to achieve significant passenger throughput at the two Shanghai airports by 2010. It is estimated that the passenger volume can reach 100 million, meeting the world average standard. The ultimate goal is to make Shanghai the main air transportation hub in the Asia Pacific region by establishing a well-connected international network that links with all major airports in the world.

This development is being carried out in three stages. During the first stage, from 2005 to 2007, the large-capacity international transit centre and national and international flight network were built. The second stage, from 2008 to 2010, is regarded as the stage for adjustment and enhancement, laying the basis for becoming an air transportation hub. In the final stage, the mature development stage which lasts from 2011 to 2015, this goal will materialise. The main aims are to reduce restrictions on international air travel, to become the main component of the air transport network in Shanghai and improve technical aspects of the hub. Passenger and cargo throughput in two Shanghai airports are expected simultaneously to hit a record high in Asia Pacific, reaching 100 million and 7 million tons respectively by the end of the final development stage.

It is also forecasted that the World Expo 2010 will probably contribute to this extraordinary visitor growth - passenger volume is expected to reach 15 million during the event. By then, total passenger volume at Shanghai's airports is expected to reach 67 million.

The Shanghai Municipal Government and the Zhabei District Government have also invested RMB413.6 billion in the establishment of the North Square Shanghai Railway Station, which is considered as one of the most significant projects in the city. This large railway station is expected to be completed and operated before the opening of World Expo 2010. The railway station, which connects the whole transportation network, enables passengers to interchange among railway, light rail, taxi and bus networks.

Industrial development:
the future for finance and trade

The government has conducted a range of other projects since 2003, including development of a new industrial system, a modern infrastructure system with three ports and two networks as backbones, a social endeavour system and a city innovation system tailor-made for a knowledge-based economy.

In line with the industrial development strategy, the Municipal Government has focused on the development of service industry. Service industries such as finance, retail and distribution, logistics, conference and exhibition services, tourism and the real estate industry are being promoted by the government. Besides, four key industrial bases, including a microelectronic industrial base, an international Auto City, a Shanghai Chemical Zone and a high value-added steel product base have already been in production.

Most importantly, Shanghai has tried its best to maintain its international financial hub status. Undoubtedly, its financial market reflects the development of the whole country.

Experts assert that there are five factors and four steps for the financial development of Shanghai. The five factors are intrinsic advantage, well-established infrastructure, government support, a solid legal framework and local talent. The four steps involve, first of all, Shanghai becoming the core centre so as to unify the financial system in the Yangtze Delta; secondly, the authority integrating its resources to transform the city into the national financial hub; thirdly, the city strengthening external cooperation and enhancing exchanges with the goal of building a regional financial hub in the Asia-Pacific region; and finally, Shanghai using its advantages to influence the world financial system and eventually become an international financial hub.

Chen said, "Shanghai has focused on its financial markets so as to establish an international financial hub, promoting the development of the financial industry in the nation and acting positively as an interactive tool for the regional financial industry."

Super hub in the future

In the next decade, through the efforts of government and industry, Shanghai will experience surprisingly rapid development in all aspects towards the goal of becoming a super "4 in 1" hub. Referred to as "Paris in the Far East" in the fi rst half of the last century, Shanghai will defi nitely continue to exert its infl uence on the world in line with national central policy in this century.