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The first phase of construction of the 14.31 billion yuan Yangshan deep water port got underway recently. Construction of the port is considered to be crucial to Shanghai's quest to become an international maritime shipping center.

The deep-water port will be located in Shengsi County of Zhejiang Province at the mouth of the Yangtze River, about 45 kilometers from the Pudong international airport and 30 kilometers from Luchao port in Shanghai's Nanhui district.

With an annual average water depth of 15 meters, the new deep water port will have over 30 berths with a total annual capacity of 13 million TEUs, when it is completed in 2020, official sources said.

Shanghai Port handled 204 million tons of goods in 2001, making it the largest port in China, and the third largest in the world after Rotterdam and Singapore.

The idea to transform Shanghai port into an international shipping center was initially proposed by the Chinese government in 1996, but since the port is only seven meters deep, a new site had to be located.

Since then, the city has employed shipping, oceanographic and other experts to identify the best site for the new deep water port.

The preliminary design of the first phase of the Yangshan deep port was approved by Chinese authorities and experts in May of this year.