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Shanghai will build a new city to the northeast of the downtown area to make it part its international shipping center.

Covering an area of 300 square kilometers and accommodating 800,000 people, the new city consists of one central city, nine new cities, 60 new towns and 600 villages, deputy mayor Yang Xiong said.

The new city, named "Lin Gang Xin Cheng," is situated on the Hangzhou Bay, which is about 32 km from Yangshan deepwater port.

Construction of the city will cost 36 billion yuan (US$4.5 billion). The new city is scheduled to take shape in 2010.

A man-made lake covering 5.6 square kilometers will be located in the center of the city. It will be surrounded by residential areas and industrial parks.

The new city aims to develop heavy equipment, logistics and storage industries, and investors across the world have shown great interest, according to the deputy mayor.

Shanghai plans to build itself into an international center of economy, finance, commerce and transportation by 2020.

(Xinhua News Agency April 2, 2006)