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Imagine Shanghai with a modern cruise ship terminal unloading boatloads of free-spending tourists.

It could happen in the near future if plans for a terminal in the North Bund area are approved by local officials.

Hong Kong-headquartered and listed Star Cruises Co. Ltd., has proposed building a world-class cruise ship terminal in the area between Hongkou Harbor and Gongping Road, as part of the city's efforts to renovate the waterfront area.

"The 1,200-meter-long coastline in the area boasts a water depth of 8 meters or more, a very good geographic advantage for cruise ships to berth," said Yu Jianmeng, president of the company's China business.

"What's more, cleaning of Suzhou Creek and the Huangpu River has taken away most silt, which will greatly reduce the construction cost."

Government officials involved in the North Bund renovation and those with the local port authority are cautious on disclosing anything about final plans, only saying it's under discussion.

"Among the massive North Bund renovation plans, we do have an idea to turn the old harbor alongside the Huangpu River in the area into an international passenger shipping terminal," said Pan Junwei, an official with the Hongkou District government, which is in charge of the area.

Yu is optimistic about carrying out the blueprint to make Shanghai one of the world's best places for cruise-ship visitors. He indicated some agreement on the construction plan will soon be reached.

According to Yu, at least 500,000 to 1 million cruise ship passengers would visit the city every year because the proposed terminal area is capable of receiving four large cruise ships carrying 2,800 passengers each at the same time.

"The great passenger volume would bring the city income from accommodations, shopping and catering," said Yu, who estimated the visitors would contribute at least US$200 million every year even if each passengers stays in Shanghai for only one day.

Last year, 168 cruise ships carrying 57,000 passengers entered or left Shanghai, accounting for 2 percent of the 2.04 million foreign visitors.

In addition to the terminal, Star Cruises Co. also plans to build in the area a complex containing hotels, shops, entertainment, catering and recreation facilities totalling about 2 million square meters to especially accommodate the coming cruise visitors.