March 30, 2006

Shanghai sets up grain reserve to ensure safe grain supply

China's financial center, Shanghai, is building a grain reserve warehouse to ensure its future grain supply.

The grain logistic center will stock 350,000 tonnes of grain and 150,000 tonnes of edible oil by 2007.

The metropolitan area's annual grain consumption averages 5.8 million tonnes, of which only 1 million tonnes is produced in the Shanghai metropolitan area,

The shortfall thus created the need to build grain storage and processing centres. 

Water and railway traffic is linked to the warehouse located in the Waigaoqiao Bonded Area in Shanghai.

The municipal government has planned to base another grain storage center in Zhoushan Island, which is expected to accommodate 100,000 tonnes of grain storage.

Construction is expected to start later this year.