Shanghai container volumes to increase 10% annually

Shanghai port – the world’s busiest in terms of container traffic – says volumes will increase about 10% annually for the next five years, as more manufacturers move their operations to western and inland China to take advantage of lower-cost labor, Bloomberg reported. The shift in manufacturing operations has boosted Shanghai’s shipping sector as cargo volumes increase along the Yangtze River, which passes through territories including Chongqing, Sichuan and Anhui. It handled 1.34 billion tons of cargo in 2009 – more than triple the volume of 2000. Chen Xuyuan, president of the harbor operator Shanghai International Port (Group) (SH.600018) said Shanghai’s container traffic may rise 12% this year, which would likely mean it would retain its lead in cargo-box volumes over Singapore. In the first five months of 2011, Shanghai handled 12.7 million containers, compared with 12.1 million by Singapore.