Seven coastal liner routes running from Shanghai to northern and southern port cities have closed due to losses resulting from a sharp decrease in the number of passengers, who are choosing the faster and more convenient alternatives offered by air, rail and road travel.

"But this does not mean that there is no market for water services," said Luo Ming, general manager of Shanghai Golden Strait Ferry Company Ltd.

People living on islands are calling for high-speed liner services rather than slow sailing ships, Luo said.

His words were echoed by local shipping insiders who insist that water transport services should shift their focus from coastal cities to islands.

According to Luo, the city should target the Zhoushan Archipelago, which consists of more than 400 islands, as a market for high-speed liner services.

Currently, passengers taking ships from the Bund's Shiliupu Passenger Centre to Putuoshan, a Buddhist site in nearby Zhejiang Province, which attracted 1.8 million tourists last year, need 15 hours to reach their destination.

However, the same trip can be made in only two hours by high-speed liner service from Luchaogang Wharf in Nanhui District, which is located one-and-a-half hours from the downtown area.

According to Zhuang Shanheng, a director from the dispatcher's office at Shiliupu Passenger Centre, the city government has decided to move the centre to Wusong in Baoshan District as part of its adjustment plan for water passenger transportation.

The decision also aims to make space along the Bund to facilitate further tourism development in line with Shanghai's World Expo 2010 plans.

Local high-speed liner companies are excited about the decision, which will give their companies more opportunity for expansion.

The purchase of foreign-made ships will help open new routes to the islands at Zhoushan Archipelago, Luo said, adding that "even if the company suffers losses at the outset, it will still go on as the market has a big potential."

An Australian ship worth about US$6 million, which is able to reach a speed of 64 kilometers an hour, is expected to be put into service from Shanghai to Putuoshan this year, allowing passengers to complete their journey in only one-and-a-half hours, he said.

The company also plans to build a high-speed liner base at Yangshan Deep-Water Port at Zhejiang when the 32-kilometre sea-crossing bridge linking Luchaogang to Yangshan is completed. Liners from the base can reach islands nearby, thus forming a high-speed liner network, Luo said.

(China Daily March 18, 2003)