Shanghai received formal approval from the central government to set up a logistics center aimed at exporters in a bid to make the city's port more attractive.
The logistics area, to be located in the Waigaoqiao Free Trade Zone, will offer special services for value-added tax (VAT) and container shipping and will cover 1.02 sq km, with links to a nearby port.
Shanghai accounted for nearly 25% of the mainland's foreign trade in 2002. The city expects its port to be ranked as the world's third largest in 2003, behind Hong Kong and Singapore.