Sources from the Beijing Jingtai Logistics and Real Estate Co Ltd, one of the sponsors for the project, said the total investment in the Beijing Logistics Port is estimated to be 11 billion yuan (US$1.33 billion).

Beijing Jingtai and Hong Kong-based Kerry Group will be the two key investors and Beijing's Huayuan Enterprises Group and Hongshi Industry Co Ltd are to be involved.

Zhang Minzhuo, director with the strategic development research office of Beijing Jingtai, said the port has been selected as one of the logistics bases for the 2008 Olympic Games.

Located in eastern Beijing's Shibalidian, the port will cover 3 million square metres and is near the Beijing-Tianjin-Tanggu Expressway.

"The Beijing Logistics Port is likely to act as logistics, trade and commerce, exhibition, information and service centres for Beijing and its neighbouring areas after completion," Zhang said.

Wu Jie, deputy director with the Office for Restructuring Economic System under the State Council, said import and export goods from the Tianjin port will conveniently be transported to the logistics centre through the expressway, which may reduce transporting and storing costs. It will also streamline customs procedures and enhance the competitive edge of foreign trade in this region.

"Meanwhile, construction of the logistics port is to lay the foundations of an integrated logistics system of Bohai Bay Circle, involving Beijing, Tianjin, and cities in Hebei Province," Wu said.

Experts pointed out that the Beijing Logistics Port will help North China to keep up with the southern part of the country, where, two large-scale logistics centres have been built in Shenzhen and Hangzhou respectively. So far, designs for the logistics port have been finished and construction is expected to be finished by 2006.

(China Daily November 6, 2001)