Announcement of China Expands Port Facilities in Ningbo, Shanghai and Xiamen on December 15, 1988

FOR IMMEDIATE RELEASE World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. BANK NEWS RELEASE NO. 89/18 Contact: Leandro V. Coronel (202) 477-3641 CHINA EXPANDS PORT FACILITIES IN NINGBO, SHANGHAI AND XIAMEN WASHINGTON, December 15, 1988 -- To keep up with the pace of domestic economic activity and external trade, China will launch two projects to expand facilities and boost the capacity of ports in Ningbo, Shanghai and Xiamen. The World Bank has approved two loans totaling $112.4 million to support the projects, designed to speed up cargo handling and reduce costs and ship-waiting time. Ningbo and Shanghai Ports A World Bank loan of $76.4 million will help finance a project that will expand the capacity and improve the efficiency of port operations and maintenance at the Ningbo and Shanghai ports. At Ningbo, a study to define the role of the port's deep-water facilities will be prepared, and the port's master plan will be updated. One container and two multipurpose berths will be constructed, and cargo-handling equipment provided. The project includes personnel training. At Shanghai, the port's master plan will be reviewed, and measures will be carried out to improve operational efficiency and safety. General cargo, multipurpose and coal berths will be built at the Baoshan, Guangang and Zhujiamen terminals. Four berths will be reconstructed, and an 80,000-ton grain silo will be built at the Minsheng terminal. Cargo-handling equipment will be provided. The project is estimated to cost $340 million overall. The government, the Ningbo Port Authority and the Shanghai Harbor Bureau will provide $262 million, and Japan and other financing sources will provide $1.6 million. Xiamen Port A companion project to expand and improve port operations in Xiamen port will be partly financed by a World Bank loan of $36 million. This port's master plan will also be updated, port operations and maintenance improved, and staff training provided. One coal, one container and two multipurpose berths will be constructed. The government will provide $54.3 million to finance this project, which will cost $90.3 million. The World Bank loans are for 20 years including five years' grace period, with a variable interest rate, currently 7.59 percent, linked to the cost of the Bank's borrowings. They also carry an annual commitment charge of 0.75 percent on the disbursed balances. NOTE: Money figures are expressed in U.S. dollar equivalents.