Shanghai Daily News

Hongqiao Development Zone, Shanghai's first foreign-oriented economic development area in Changning District, recently pledged to become the sub-center of the city's economy within five years.

According to its ambitious plan, a total of 1 million square meters of office space is scheduled to be constructed. In addition, transport facilities will be greatly enhanced in the areas of airport runways and Metro and rail lines before the 2010 World Expo.

Thanks to its prime location between Hongqiao International Airport and the city center, over the past 12 years the area has achieved fast economic development and become an international residential neighborhood.

The area is characterized as a foreign trade center, integrating the businesses of exhibitions, office services, residential, catering and shopping.

With development of the zone now in full swing, the district government has decided to enlarge the area with more office space.

"Hongqiao will continue to be the most powerful engine of the district's economy," said Wang Xunguo, director of the Hongqiao Investment Office. "Taxes from office buildings have become the new pillar of the economy in the district over the last two years."

According to Wang, Hongqiao's tax revenue from office buildings has being booming, with receipts from five of the properties each surpassing 100 million yuan (US$12.5 million) last year.

Among them, City Center, located on Zunyi Road, ranked first with a figure topping 300 million yuan.

Currently, four office buildings covering an area of 285,000 square meters around Gubei are under construction and are expected to finish in 2008. If the plan goes smoothly, more than 1 million square meters of office buildings will stand in the Hongqiao area by 2010.

"Hongqiao is different from the Lujiazui commercial center," said Wang. "Our main target is to serve the Yangtze River Delta region and attract the world's top enterprises to set up their regional headquarters or research and development centers here."

With three exhibition halls - Shanghai World Trade Center, Shanghai Mart and Shanghai Agriculture Exhibition Center - providing more than 400,000 square meters of space, Hongqiao has experienced success in the service industry and exhibition sector. More than 125 events were held in the area last year, accounting for 47 percent of the city's total exhibitions.

According to its plan, the district will continuously focus on developing the exhibition sector by holding more professional and high-tech event. The service industry will greatly benefit from the increased events.

Transport construction is another part of the plan. The construction of Metro Line No. 2, 4 and 5, all of which run through Hongqiao area, will be completed before the 2010 World Expo.

Another airport runway and Shanghai International Airport terminal is scheduled to be constructed while 200 kilometers of railway and a bus hub for the Yangtze River Delta region will also be built.

At such a pace, the Hongqiao area is on a fast track to becoming a major Asian transport hub.