Food market auctioned out
10/5/2004 13:14
Food market has become a new focus of interest for local business
people, as operation right for a third market in Xujiahui area has been
successfully auctioned out, today's Jiefang Daily said.
Shanghai Ten Steel Co
Ltd has defeated two other rivals in the bid for a five-year operation right of
the Leshan Market, according to Zhou Baoyun, vice dean of Xujiahui Neighborhood
Community Service Center, organizer of the auction.
The center announced the
result yesterday, but didn't specify the value of the deal. Before the auction,
the government department had been operating the food market.
Both the
government and the business operator are optimistic about the new business mode,
calling it a win-win deal.
Admitting that "The government lack skills and
personnel to manage the business," Zhou said "The withdrawal of the government
in the market operation has made way for the business development of the market
and the more professional operator".
The steel company is also upbeat about
the cooperation, vowing it will introduce advanced business operation mechanism
into the market management and inject new business methods.
Meanwhile, the
market helps the steel maker to diversify its business scope, the company added,
expecting to rake in 500,000-1 million yuan (US$60,460-120,919) a year from the
new revenue source.
In a bid to reform the local ailing food trade market
sector, which has been operated by the local governments, Shanghai has started
to auction the operation rights of the markets to introduce market-oriented
operators to run them profitable.
Xifahua Market, in west city's Changning
District, became the city's first market on auction last September.
There are
more than 700 food trade markets across the city, where local people buy
vegetables, fruits, live poultries and groceries everyday.
Jane Chen / Shanghai Daily news
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