METREX International Study Visit. Shanghai November Globalisation, Urban Development and Sustainability

Transcription

1 METREX International Study Visit Shanghai November 2007 Globalisation, Urban Development and Sustainability FEEDBACK REPORT

2 Foreword by METREX President Europe is facing key challenges Externally from globalisation and climate change Internally from the need for internal integration and demographic changes These key issues affect the sustainability of European urban life and can only be addressed effectively at the metropolitan level. These include, Balancing urban redevelopment with urban expansion Integrating land use, transportation and infrastructure Sustaining the vitality and viability of city and town centres Enabling economic competitiveness Promoting social inclusion Our joint expertise, its exchange and its transfer is useful, efficient and effective in developing our own regions. Governance, planning and development policies on the metropolitan level have an increasing impact. METREX, a network in motion. We are constantly expanding our activities. With our METREX delegation in Shanghai we are seeking a highly revealing insight into the environmental challenges of a booming Chinese metropolis and into the high-tech solutions they are also working on in China. The success of the study visit was in large part due to the effort and commitment of Mr. Alastair Wyllie Head of the METREX Secretariat, and Xiaocun Ruan, from Rotterdam City Council (ds+v). In addition I want to thank all those who helped make it a success, especially our Shanghai colleagues. It is hoped that the relationships developed during the Study Visit can be continued with the participation of colleagues from Shanghai in the METREX biennial Conference in London in autumn This report summarises the findings of this visit and some key issues for the METREX network. Dr. Bernd Steinacher

3 CONTENT 1. BACKGROUND a. Purpose b. Participants(Appendix A) c. Structure of Report (Appendix B) d. Acknowledgements 2. Planning in Shanghai a. Shanghai General b. Future Prospects c. Planning System d. Vision Shanghai Global Role e. Masterplan f. Transportation Strategy 3. Case Studies Managed Urban Growth a. Pudong b. Yangshan Deep-water Port and Lingang New City c. The Lingang/ Luchao New Harbour City d. Dongtan Eco-city project 4. Case Studies - Urban Renewal and Conservation a. Renewal of the Huagpo River Frontage and EXPO Development b. Regeneration: Tong Le Fang, New factories Development c. Redevelopment and Regeneration : Xintiandi d. Regeneration Project The Bridge e. Preservation : Longtangs 5. Lessons from Europe

4 6. Implications a. Issues raised i. Integration of economic policy ii. Transport iii. Infrastructure Capacity iv. Inter-relationship of Metro areas v. Sustainable Development vi. Social Impact of development vii. Intercity Cooperation b. Implications for European Planning and METREX Programme i. Economic Development Policy ii. Social Cohesion Policy iii. Environmental policy / Climate Change iv. Implementation v. Scope for further collaboration with Shanghai APPENDICES A. Participants B. Programme

5 1. BACKGROUND (a) Purpose of Study Visit At the METREX 10th Anniversary Conference, at Szczecin in 2006, the Network decided that it would be appropriate to introduce an international dimension to its activities, where this would be relevant to European metropolitan affairs. METREX now has Members from some 50 of the 100 recognised European metropolitan regions and areas and from almost all European countries. It is in this context that the Shanghai International Study Visit was arranged to offer METREX Members the opportunity to experience the impact of Globalisation and Urbanisation on one of China's key areas of economic growth and to exchange knowledge and information on sustainability and spatial planning and development with colleagues from Shanghai. (b) METREX Participants The Study Visit took place over 5 days, from Monday 12 to Friday 16 November. The delegation was led by the President of METREX, Dr. Bernd Steinacher, Regionaldirektor of the Verband Region Stuttgart, and included 16 delegates (listed in Appendix A) from the following European metropolitan regions and areas. - Istanbul - Madrid - Paris / Ile de France - Rotterdam - Stockholm - Stuttgart - Vilnius (c) Structure of Report This report reflects the scope of the study visit but does not seek to merely report on it. Rather it provides an overview of spatial planning and development of the wider Shanghai region and to the Shanghai New Master Plan, and more detailed commentary of some of the projects visited by the group. It also draws on the joint Seminar between METREX and Shanghai colleagues. A full programme of the study trip is listed in Appendix B. (d) Acknowledgements METREX is especially indebted to the Shanghai Urban Planning Bureau (SUPB) and Urban Planning Association for their support and friendship in ensuring that the METREX delegation was able to maximise the benefit of the study trip. Our thanks are also offered to all those, who participated on the site visits or seminar. Thanks is also due to all who have provided material used in this report including maps and photos. Although all the material is the public domain, any reproduction for other than the purposes of the METREX network should be checked with the METREX secretariat.

6 2. PLANNING IN SHANGHAI (a) Shanghai - Current conditions Shanghai extends over 6,300 km2 and its traditional city boundaries demarcate an area of 289 km2the following profile of the Shanghai metropolitan region is not intended to be a comprehensive review but indicative of the scale and character of Shanghai. The sources of the data are various, and do not all tally. However the general picture that is presented is considered to be sufficiently accurate to provide a context for the rest of the report. Metropolitan Shanghai is nearly 17 million population (with a floating population of over 1 m. people) and growing rapidly at current rates of 600,000 increase/year. This growth is due mainly to migration from rural areas, graduates seeking employment, manual workforce to supply construction industry and other low skill workers seeking employment. Table 1: Scale Population 2000 Metropolitan Region 16,407,734 Administrative Region 6,544,649 Central District 822,990 Densities in the central area is approximately 16,000 Table 2: Density Density (pop/ km²) persons/sq km (2nd only to Cairo), with densities Metropolitan 2,588 significantly higher than other comparable cities (e.g. Region Tokyo). Densities are increasing, especially with the Administrative 22,611 increasing number of high rise developments. By the Region end of 2002, Shanghai had a total of 4,916 tall Central District 29,309 buildings, of which 2,800 were over 18 storeys high. with another 2,000 buildings either under construction or in the planning stage, including the 370m high Jin Mao Tower. Urban Footprint 1995 Urban footprint 2004

7 Most residential property is privately owned, i.e. not rented. Ownership rights are being reformed to provide greater security. In the meantime prices have soared. This move to private ownership has been fuelled by surplus capital in the economy within a society which has a culture of high savings and investment. Housing is therefore seen as a good investment which has therefore resulted in high increases in housing prices, high levels of vacancy and growing differential between incomes and house prices. Table 2: Key Statistics Owner-occupied Housing 63% Private rental 7% Subsidised housing 30% Average Household Size 2.7 pph (does not probably reflect multiple occupancy associated with mobile population) Life Expectancy 80.1 years Car Ownership 70/1000 hld Employment (2005) 8,679,000 The Shanghai economy is mixed but with a growing service sector, with major financial services, over 60 higher education institutes and China s main port. In comparison with other major metropolitan areas it has a large manufacturing base. Its workforce is educated and IT literate with 8 m. internet users. The demographic structure however highlights the potential longer labour supply problems and new issues related to the aging population. Table 3: Employment 2005 % Primary (Agriculture etc) 7.0% Industry 32.4% Construction 4.8% Trade, Hotel transport 23.4% Financial & Business services 12.2% Other Services 20.2% In terms of GDP Shanghai has a low GDP per capita compared to most western cities. It is however significantly higher than the rest of China and has been growing rapidly, increasing the disparities. There are however big disparities within the city. Since World War II heavy industries have come to the area creating environmental problems. This combined with the use of coal for domestic heating and growing traffic has resulted in poor air quality. Table 4: GDP GDP 100m yuan Shanghai China , , , ,218 GDP/capita (yuan) Shanghai China ,143 8, ,492 11,423 There are 42 m. journeys every day (all modes including walking). Originally it was dominated by bikes but car ownership is rising rapidly at 14%/annum, causing safety issues. Although there is good bike infrastructure, it has to cope with 7 m. cyclists. Public transport in Shanghai is much cheaper than using a car and there is a good public transport system. Still the Chinese prefer to have cars because its status symbol. Several reasons make people using less cars in Shanghai, license is very expensive (can be 5-10% of the total costs of buying a new car), the lack of parking lots and cheap taxis.

8 (b) Shanghai Future Prospects Little direct evidence was supplied during the study tour about the future economic and social forecasts. The planning process tends to be based upon a directive approach to anticipating future demand, and thereby making provision for it. However some key considerations about the future prospects are: (i) Population and Households: It is anticipated that the population of the Shanghai region will grow from 17 million to c 25 million by Some commentators have quoted lower figures but the situation is complicated. For example, even with consistently low, near-replacement level fertility rates China s population has yet to peak. This is mainly because China s future population growth is still being driven by its past growth. A range of issues will also affect growth e.g. the continuation of the one-child policy, the fact that urban fertility rates are lower than rural areas and government policy on migration (ii) Economic Growth: It is anticipated that there will be a 10% GDP growth per year over the next 10 years. Shanghai s four main manufacturing industries automobile in the west, microelectronics in the east, steel in the north and petrochemicals in the south are the focus of six key sectors to be promoted. The others include shipbuilding and equipment manufacture. It is however recognised that internationally the most rapidly growing metropolitan areas have been through the service sector and that in Shanghai the growth in service industries since 1990 has outstripped manufacturing (though this may be in part due to the restructuring of industries into less vertically integrated operations i.e. no longer carrying services in-house). (iii) Car ownership: car usage has been growing by 50% per annum with consequent increase in congestion, peak hour spreading, increasing travel times and reducing speeds. From 2004 to 2020 the car ownership is expected to rise four times but this may be capable of control through the auctioning of number plates at very high prices (potentially equal to price of a car) which acts as a form of indirect road charging policy. Road Traffic 1995 Road Traffic 2004

9 (iv) Housing: the increase in the demand for private housing in the short term could be replaced by a growing need for more affordable subsidized housing in the medium to long term, and cater for an aging population. (v) General Levels of Demand: If China overall were to aspire to be consuming by 2050 the same as the average American does in 2000, then Shanghai would have to have a long and sustained period of growth, as illustrated in the following Table. FACTOR Growth in Demand to meet US Levels Population 13% % Urban Population 100% Water use 283% No. of vehicles 608% CO2 emissions 805% Meat Consumption 2657% Energy Consumption (oil equivalent) 10072% Paper Consumption 11076% Source: Chandran Nair : CEO, Global Institute For Tomorrow: 2007

10 (c) Planning System Within China s current legal framework, Shanghai operates as a city-state. Urban planning system in China was re-established in 1978 after abolishment for more that 10 years during Great Leap Forward Movement and Cultural Revolution. As a result all the cities and designated towns in China had to prepare or revise the city Master Plan and detailed plans. Metropolitan and capital cities of the provinces and those cities with the urban population more than 500,000 had to submit their plans to Central Government for approval. By the year of 1990, 12,467 cities and designated towns had completed their master plan formulation. The city master plan at this period was within the framework of the Open Door and Reform Policy. Some new economic policies were introduced including 4 Special Economic Zones and 14 Coast Open Door Cities were established to attract overseas investment and new technologies. The city master plans of this term have provided a basic framework for the city modernisation construction. The city planning began to be linked with economic development and to guide the urban infrastructure development. Since 1990 there has been a progressive establishment of a statutory planning system. In 1991, all the designated cities and town had to formulate City Comprehensive Plan for the 21st Century. In 1996, the People's Congress, decided that China should move from the Central Planned Economy to the Socialist Market Economy. There are two levels of urban plans - City Master Plan and City Detail Plan. Large cities have to prepare district plans as extra level between the hierarchy between City Master Plan and Detailed Plan. The defined detailed plan has two types. One is so called Controlling Detailed Plan, which is not defined in the City Plan Act, but regulated by Ministry Circular after the implementation of market led economy; the other is so called Constructing Detailed Plan. The Master Plan and Detailed Plans are the statutory plans. Besides statutory plans, there are non-statutory plans, e.g. Integrated Systematic Plan of Cities and Towns and Regional Plan which seeks to achieve a harmonious and balancing city and town development within a region and is subject to the hierarchical scrutiny process. All these plans form the urban planning system in China. These are complemented by a complex system of permits required for any development project. The following Tables summarise the system.

11 LEVEL DEPARTMENT PLANNING OBJECTIVE PLANNING TOOL KEY POWER National Level State Council of the P.R.C determines fundamental principles of planning, conceives national legislation and major policies legislation- Urban Planning Law, other laws and regulations conceives legal framework for policies and legislation of subordinate tiers of government The People s Republic of China (P.R.C.) Ministry of Construction (Regional level non-existent for Shanghai, direct control by national government) Ministry of Land and Resources approves the master plans of subordinate tiers of government coordinates the regional disparity and harmonious development of society by elaborating the national long term, programmatic planning policies for the regions, towns and cities in need of economic, social and environmental development conserves arable land to ensure the dynamic balance of arable land, ecologically valuable land and urban expansion powers to approve, reject or alter urban master plan, both national and provincial urban system plan national guidelines, policies, regulations for urban and village planning development strategies for the cities and important agglomerations national laws and regulations related to land use approves master plans of the municipalities, provinces, autonomous region capitals, cities with a population of more than 1 million and cities designated by the State Council approves the master plans of subordinate tiers on behalf of the State Council elaborates the national and provincial urban system plan on behalf of the State Council supervises the provincial Construction Offices and the construction industry participates in elaboration of national landuse planning supervises planning for historic cities and scenic spots of national importance supervises the provincial Offices of Land and Resources land-use planning for specific developments compiles overall planning for national land use monitors land resources

12 LEVEL DEPARTMENT PLANNING OBJECTIVE PLANNING TOOL KEY POWER City Level Shanghai City Construction Offices Construction Committee of the Municipality3 of Shanghai long-term, programmatic planning for the municipality to promote economic, social and environmental development controlling municipal infrastructure and construction projects municipal guidelines, policies, regulations for urban and village planning municipal development strategy implements the urban system plan on the municipal level supervises the Construction Bureaux approves those master plans 1 which are not to be submitted to the State Council supervises planning for historic cities and scenic spots Urban Planning Bureau guides development to realize the goal of economic, social and environmental development drafts local planning documents and guides all construction within administrative area urban planning policies, local laws and regulations urban master plan, detailed plan and urban design plans chooses locations for key construction projects defines borough sizes formulates and implements urban planning policies, local law and regulations elaborates and monitors master plan, detailed plan and urban design for specific areas supervises subordinate planning bureaux administers the conservation of historic sites Borough Level Urban Planning Bureau Source : URBAN AGE steers development to realise the goal of economic and social development drafts all planning rationale and guiding all construction within administrative areas issues land use permission and building permission elaborates regulatory plan, site plan, community plan and urban design supervises implementation of planning documents checks and issues land use and building permits

13 (d) Vision Shanghai Global Role There is a very clear vision underpinning the Shanghai policies and programmes and that is to promote Shanghai as a global city to compete with London, Paris, Hong Kong and New York. This is set out by central government in guidelines and other statements. Guidelines: The national government has set down the following guidelines requiring the Master Plan for Shanghai to reflect : 1. The idea of the whole region development begin with economic integration development of the Yangtze River Delta agglomeration, plan constructive activity as a whole, such as industries, energy power layout, transportation and infrastructure, etc 2. A strategy of sustainable development, promoting of coordinated development is pursued in all aspects of economic, social, population, resource and environment; 3. The functional requirements for an international center of economy to rationally arrange distribution of industry and population and infrastructure construction. 4. The aims of on the basis of human being to create a fine environment for living, working and relaxing to the citizens. Designated function of the city: Shanghai is seen as an important economic and shipping centre, a famous historical city of China. It will be constructed progressively into a socialist modernised international metropolis and one of the international economic, financial, trade and shipping center. Goal of city development: By 2020, the city should have become a world economic, financial, trade and shipping centre and make Shanghai an international economic central metropolis and be the link internationally for the wider region, promoting joint development of Yangtze River Delta and Yangtze River Economic Zone.

14 (e) Shanghai Master Plan Mid-term goals for spatial development and regeneration in Shanghai are set out in the Consolidated Plan for Shanghai and the Five Year Plan ( ). Both plans aim for long-term sustainable development of society, industry, resources and the environment. They are based on tackling the following issues: Insufficient residential provision Poorly located polluting heavy industries Insufficient scientific infrastructure Poor traffic infrastructure Lacking in tourist, recreational and leisure facilities Environmental problems The town planning concepts underpinning the Master Plan is to protect the central city and strengthen the satellite towns. The concept for the city is to increase the public realm and a reduction in the density, bringing in high value residential and business floorspace. The three core elements for the strengthening of the satellite towns are to intensify land uses and improve the pattern of employment, including relocating nonconforming industries (i.e. existing badly located polluting industries). Central City The Central Business District is core to the strategy for Shanghai. An area of 3 sq. km. is planned as an integrated zone for finance, trade, retailing, culture, leisure and tourism. The downtown area, which covers about 679 square km., is home to about 9.7 million people with an additional 2 million visitors every day. Observers have commented that the increasing densities are placing excessive demands on transport infrastructure and utilities, as well was causing subsidence. The Shanghai city government has therefore launched an updated plan which aims to improve the quality of life in the city in particular by reducing densities in the inner city. The plan is based on decreasing the population in the downtown from 9.7 million to about 8.5 million by About 50,000 people are expected to move to suburbs each year. In the downtown area, the government plans to enlarge green space and public areas. It will also decrease construction of houses and control the number of high rises. Apart from controlling the number of new residential buildings, construction of transportation is a critical factor in attracting people away from the downtown.

15 Urban Structure These policies to sustain the Central City are complemented by the management of urban growth through 11 large new towns/ cities which are expected to accommodate 300,000 to 800,000 people. These include Songjiang Jiading, Boashan, Qingpu, Minhang, Jinshan, Nanqiao, Harbour New Town, Huinan, Chenqiao and the Airport New town. ; 60 new towns with populations with over 30,000 inhabitants (up to 100,000) and industrial bases; 3,000 suburban communities will also be built to replace existing peasant villages; and 600 Central Villages of around 2000 population, created through the merging of several villages to modernise rural villages and better use land. In addition an Ecological / Green Framework is to be created so that by 2020, over 30% of the city s land will be covered by forest and greenery coverage rate will be over 35%. The public green space per-capita will be increased to 10 sq. m. and the greenery rate will be over 30%.in urbanized area. People in the new towns will also enjoy over 15 sq. m. of green land per capita. Major Industrial Bases The development of Shanghai s economic role will be promoted through the development of six specialized industrial areas, in addition to the support for the central Business District. These are as follows, and in some case linked to the creation of one of the new major towns / cities (e.g. Anting) : Pudong Micro-electronic Industrial Base Anting Automobile Industrial Base Shanghai Petrochemical Industrial Base Baoshan Steel Industrial Base Lingang Equipment Industrial Base Shanghai Ship-building Industrial Base

16 (f) Transportation Strategy The Master Plan promotes intercity transport through the concept of Three ports and two ways as key point to build up Shanghai is an international shipping centre. This is based around the following key network developments. Harbour: Airports : Highways: Railways: The creation of a 50-berth deepwater harbor will be built for full time operation of container of 5th-6th generations, and continued dredging of navigation channel of Yangtze and rebuilding the relevant harbor zones. The airport capacity will be built based on Pudong (70 million passengers) and Hongqiao (45 million passengers) International Airports. The construction of 7 national Highways (3 spine) and 12 provincial highways. Strengthening the rail system through four master stations - Shanghai station, South Shanghai station, Pudong station and Qibao station, three supplementary stations are West Shanghai station, Songjiang station and Huangdu station. Urban transport is planned to be improved by making close link between rail transit and ground bus system forming a modernised city transit system based on coordinated growth of every kind of transit tools. Roads: A hierarchical system of urban transport will be based on three ring roads. The plan is for a motorway to be able to be reached within 15 minutes from anywhere in the city, and will give access to satellite towns within 30 minutes and anywhere in under on hour; and Mass transit : A network based on 4 High speed regional lines; 8 Urban metro lines:and 5 urban light rapid transit lines. These 17 lines, span 976 kilometers, in central city length approximately 480km. A 430km/hour high speed Magalev (30 km to airport, with planned extension to 92km).

17 3. CASE STUDIES MANAGED URBAN GROWTH (a) Pudong Pudong was designated in 1990 by the Chinese government as a Special Economic Zone in the district. Pudong's gross domestic product reached RMB billion ( 21 billion) in Districts of the directly controlled municipality of Shanghai are administratively on the same level as prefecture-level cities. However, the government of Pudong has a status equivalent to that of a sub-provincial city. This is due to Pudong's size and importance as the financial hub of China. The Pudong local economy has grown rapidly with tax on foreign-funded enterprises as low as 15% and tax exemption on imported goods and income for foreign businessmen. In 1990, the local GDP was only RMB6,024 million. The figure for 2001 was RMB108.2 billion with an average annual GDP growth rate over 20%. In 2001, the urbanized part of Pudong reached over100 sq. km., of which 60 sq. km. with key development zones: Lujiazui Finance & Trade Zone. Jinqiao Export Processing Zone for new and hightech businesses, covering 19 km². Waigaoqiao Free Trade Zone and the harbor area for free trade, bonded warehousing, export processing, etc, covering 10 km² in north-east Pudong. Zhangjiang Hi-Tech Park for hi-tech industries e.g. biotechnology, IT and microelectronics, covering 17 km² of central Pudong. The Study Tour visited Lujiazui Zone which consists of 43 km². and a resident population of 650,000. It has been given special status nationally as the only zone with a Finance and Trade designation. It has five Urban functional Clusters financial District, Administration & Culture, Convention & Exhibition, New Shanghai Business City and Municipal Tourism. It also has three regional centres to serve the local communities. Since 1990, a total amount of RMB 180 billion has been injected into Pudong infrastructure.

18 Infrastructure projects ( ) The Nanpu Bridge The Yanggao Road Extension Project Pudong Gas Works Lingqiao Water Plant The Telecommunications Project Infrastructure developments ( ) Pudong International Airport Pudong International Deep Water Harbor (Phase I) The No. 2 Metro Line (Phase I) The Water-Supply and Drainage Project The East China Sea Natural Gas Project Infrastructure projects ( ) Phase II of Pudong International Airport Pudong sector of the Outer Ring Road Light Rail Transit (L4) Water Supply and Discharge Project Fuxing Rd. Tunnel The Yangpu Bridge New Harbor in Waigaoqiao Waigaoqiao Power Plant The Sewage Treatment Project Inner Ring Road (Pudong Section) Pudong International Info-Port Outer Ring Road (Pudong Section) Pudong Light Railway Transit Waigaoqiao Power Plant (Phase II) The River-Crossing Project Phase IV of Waigaoqiao Deep Water Port The Maglev Phase II of Pearl Line Huangpu River Pedestrian Tunnel Wusong Rd. Tunnel Dalian Rd. Tunnel ô

19 (b) Yangshan Deep-water Port These developments were visited on the Study Tour. They are located 75km from central Shanghai but are part of the Master plan to develop the entrepôt function of Shanghai based on expanding the port capacity. Shanghai is a key gateway for China to the world. Container throughput at the Shanghai port grew by 35.8% to million twenty-feet equivalent units (TEU) in 2002, accounting for 23.3% of China's total (37 million TEU). This made Shanghai the world's fourth largest container port, The Shanghai port was however not only short of large deep-water berths but also short of modern logistics, which provide quick, reliable, flexible and comprehensive services. The Huangpu River is narrow and quite shallow, with a depth of only about 7 metres, preventing container ships of 1,400 TEU or more from entering the port. Under these circumstances, the construction of a mega-deepwater port became a "must" for Shanghai, providing a long-term solution by creating the Yangshan Deepwater Port connected by the Donghai Bridge 31.3 km. long and 31.5 m. wide, with six highway lanes, to the Luchao New Harbour City. The port is also a state-level free port, China s first, and covers an area of 7.2 km² in three parts 1.2 km² in the port, the 32.5km Dong Hai Bridge itself, and a 6 sq km area at the north end of the bridge in Lingang New Area. This free port is the most open area yet created in China, and within these areas existing policies applied to bonded zones, export processing zones and bonded logistics parks will be implemented. Import duty and taxes are suspended until the goods are removed from the free port into the domestic market. Domestic goods shipped into the free port are considered exports, and entitled to tax refunds. Goods transactions within the free port are not subject to VAT and consumption tax. As such, the Yangshan free port forms a free trade area of large size with multiple functions, including trans-shipment, distribution, processing, procurement and international entrepôt trade.

20 The Port The port is located on the islands of Xiao Yangshan and Da Yangshan in the Hangzhou Bay, 27.5 kilometres from Shanghai's southern coast, and under the jurisdiction of the neighbouring Province Zhejiang, The average water depth in the area of the islands is over 15 metres. According to the master plan, the whole project will be completed by At that time, the man-made area will increase to 18 km² the deepwater coastal line will reach 22 km.. More than 50 container berths, capable of handling the fifth and the sixth generation of container ships (5,000-6,000 TEU) will be built. The annual handling capacity of the deepwater port will increase to around 25 million TEU, probably making it the biggest - and busiest - container terminal in the world. The developer of the port is the Shanghai Tongsheng Investment (Group) Co. Ltd, which is owned jointly by the Shanghai International Group Co. Ltd, the Shanghai Port Administration and the Shanghai State-owned Assets Operation Co. Loans (c. 2.5 bn.) were provided by a consortium of ten domestic banks and lending institutions. Phase 1 of this major new facility opened in December 2005, with five containership berths. The port lies at end of the 32.5km Dong Hai oversea bridge. It is expected to have a throughput of 3m TEUs by the end of this year, primarily from Europe-China lines transferred from Waigaoqiao port. Container capacity is measured in twenty-foot equivalent units (TEU, or sometimes teu). Phase 2 with a further four berths was completed by the end of 2006, at which time lines to North and South America transferred. By 2010, there will be 15 berths, with a total annual capacity of 10m TEU by 2020, the facility will have 53 berths. There has been some concern in shipping circles that the port, with its long bridge connection, could be vulnerable to disruption to typhoons or heavy fog. However, officials reported that the bridge had so far only been closed for few hours, not a whole day due to weather conditions. The future relationship of Yangshan to other ports in the region remains to be seen. Officials accepted that Ningbo, for example, was a competitor to some extent with Yangshan, but noted that the Zhejiang city focuses more on oil, ore, liquid chemicals and other bulk cargo, while Yangshan is primarily a container port. Equally, Waigaoqiao is regarded as a brother port and Zhangjiagang as a potential feeder port for Yangshan.

21 (c) Luchao / Lingang New Harbour City Luchao Harbour City is situated in the south-east corner of Nanhui District, is about 30 km. away from the island Yangshan Port, and 30 km. from Pudong international airport. The Harbour City which is planned to have a population of ,000 inhabitants, is based on a Master Plan by Von Gerkan, Marg und Partner, Architects (Hamburg), extends radially from a 2.5 km. wide (5.6 km².) artificial freshwater lake. There are four main urban communities of 100,000 inhabitants each Shuyan, Wanxiang and Luchgaogang. The first completed phase houses ,000 inhabitants and is centred on the lakeside with mixed uses, grouping business, commercial and leisure with high quality apartments, including two very high rise buildings as focal points for the development. There will be a metro connection to central Shanghai, although its completion date is unclear. The new city will be the administrative centre of Nanhui District and serve the deepwater port, including container distribution and storage, offshore processing, shipping market, logistic centre, residence, financial and commercial services, amenity and tourism. A yacht club and a series of large cultural facilities including theatre, maritime museum, aquarium, etc. will be established on the two islands in the lake. Lingang has four functional areas : 1. Lingang Logistics Park (22 km².) closely located to the deep-water bridge connection, consisting of the free trade port, logistics park and a shipping and transhipment area 2. The main industrial area (102 km²) with a range of general facilities, including R&D, educational and offices, and incorporates the two communities of Shuyan and Wanxiang. It is focused on optoelectrics, IT manufacture, automobile parts and general machinery. 3. Integrated area innovation Zone (42 km².) devoted to R&D, training, business outsourcing services and incubation plants based around knowledge based industries. 4. Heavy equipment area (36 km².) based around marine, rail and aviation engineering, motor vehicle assembly and large scale electrics- it includes 7.8km of coastline and its own dedicated port. A railway station for container trains and an inland river dock is planned but is not yet operational. There are also new facilities under construction for the Shanghai Maritime University and the Shanghai Maritime Goods University. The Shanghai New Harbour City Investment & Development Co., Ltd. responsible for developing the new city was founded by the Shanghai Tongsheng Investment (Group) Co. Ltd. and the Nanhui Land Reservation Centre in 2002, with a registered capital of 130 million. Manufacturing processes can take place in the port that change the Customs HS code of products. These enhancements to the policy environment at Yangshan mean that the port can begin, in due course, to challenge the current dominance of Hong Kong and Singapore as regional trans-shipment and logistics centres. Indeed, officials aim to make Yangshan and Lingang northeast Asia s primary hub port.

22 (d) Dongtan Eco-City Project Dongtan is situated on Chongming Island, the third largest island in China, which is near Shanghai at the mouth of the Yangtze river. Dongtan, which is wholly owned by SIIC, covers an area of 86 km². Shanghai Municipal Government is planning to turn Chongming Island into an ecoisland, and with Dongtan Eco-city of 80,000 people on 630 hectare, has three interconnecting villages. The first with a tourism theme is intended to be complete and could act as a demonstration for the Shanghai World Expo in 2010 which has the theme of Better City, Better Life. The concept of the Eco-city is to be self-contained in terms of work and goods, and to have a much lower eco-footprint of 2.3 ha./hld (and if possible 1.8 ha/hld) compared with the current Shanghai average of 4 ha./hld. It is considered that this can be achieved through the following measures: frequent public transport, buses or water taxis never more than 500 metres away, a network of dedicated pedestrian and cycle routes abundant green spaces to get to work or go shopping or get to the local school. local food, organically farmed on the retained agricultural land waste from the city turned into fertiliser to improve food productivity and quality. fewer roads are needed per person, reducing the up-front capital cost of development road layouts to serve local houses and not provide through routes, waste removed underground in closed pipes to recycling treatment facilities where compost and energy is produced, clean safe streets and good air quality lowering healthcare costs energy for heating and power from wind, biomass, waste and solar photovoltaic panels the first city to have a hydrogen grid built in to service fuel cell power needs, particularly transport. water managed to provide separate limited potable water supply recycling of grey water which is stored on site. Despite the desirable objectives which underpin this project the presentation did not provide the analysis about how Dongtan could operate as a self contained- sufficient city when its economic functions are closely associated with shanghai and a global economy. This also relates to some unanswered questions about the like levels of outcommuting and how the levels of car usage would be suppressed whilst still appealing to the socio-economic groups envisaged.

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24 4. CASE STUDIES URBAN RENEWAL AND CONSERVATION The rapid urbanization of Shanghai is being achieved not only through the major urban expansion schemes but also through the intensification of the existing urban area through major urban renewal projects. This involves the clearance of traditional housing areas. In 1991, Bund and 11 other regions were listed for protection for historical and cultural reasons. In 1999, this protection was extended to other buildings and complexes. In 2003, Shanghai identified 12 historical areas within the central city with an area is 27 square kilometers. In historical and cultural areas with an area of 14 square km, were identified in Pudong (see below).

25 (a) Renewal of the Huagpo River Frontage and EXPO Development The renewal of the Huangpo river frontage is a key part of the master plan. It is also hoped to integrate both sides of the growing city which are currently divided by the river. The Expo 2010 development is seen as a major opportunity to achieve these goals with cross river development and two new bridges. The site of the Expo is between the Nanpu Bridge & Lupu Bridges in the center of Shanghai along both sides of the Huangpu River. The area of the Expo 2010 covers 5.4 km² As part of the redevelopment of a 20km² stretch of waterfront along the Huangpu, Under this scheme, 2,250 ha. of riverbank are being developed for mixed uses, incorporating tourism and leisure facilities, as well as office, commercial and residential buildings. The key exhibition venues will occupy 3.4 square km² in Pudong with 135 individual and five communal pavilions. National pavilions will be on both sides of the Huangpu to maximise the effect of the riverbank setting. In addition, a continuous green belt will flank both sides of the river and a rail line is planned to run along either bank of the river. A key part of the planning has been an action plan to cover the following: clearing up of the water and the atmosphere, solid waste treatment, greening and conservation and clearing up of the agricultural eco-system, relocate polluting industrial enterprises, and treatment of the regional environment. The costs of the Expo is estimated at US$ 3 billion, of which 43% will come from government sources, 36% from companies and 21% from banks. 58% is earmarked for land acquisition of existing industrial and residential property, and 42% for the construction of facilities such as World Expo Village and World Expo Park. The authorities are looking to invest 5bn Yuan redeveloping the area. 70 million visitors have been planned for, generating close to 30 million air trips. In order to cater for this, expansion of the international airport at the Pudong New Area has been brought forward. A terminal and another runway, with a capacity to handle million passengers have been provided for. It is proposed to connect the Expo site to the airport via the Shanghai Maglev Train.

26 (b) Regeneration: Tong Le Fang, New factories Development The old Tong Le Fang, located at the junction of Xikang Rd., Yuyao Rd. and Haifang Rd, was the first factory cluster in Shanghai to be erected for the light industry sector in It is the unique part of the city's industrial history. The cluster of lane factories had very diversified productions that range from electronic device, cotton, cookies, cinema and even theatre that had hosted many cultural events. As the city's economy grew, these light industry businesses were unable to keep up with the pace and had since moved out of Tong Le Fang in 1990 and many buildings lay unused. The Jing An District government plans transform this iconic landmarks into a vibrant leisure/cultural destination. In 2004, a comprehensive Master Plan for the area was drawn up and approved by the authorities to transform the area into a world class integrated entertainment and cultural destination to be called The New Factories. The New Factories development is a 20,000 m². with 23 shops, theatres and art galleries, costing RMB200 million located on the fringe of the business district. It has generated 700 jobs. Leases are very short term (2 years) but rents have risen tenfold as a result of the project and flats cost c. 300K for 100 m². apartment. (c) Redevelopment: Ladoll City Residential Development Ladoll International City is at west Beijing Rd and No 2 Shimen Rd. It is the redevelopment of 27 ha. for 1300 units at plot ratio of 3.8 and 40% green spaces with Sauna, indoor swimming pool, gym, tennis, club. The first stage was opened at 2001, the second was opened at 2004 and the third was opened at Ladoll is one of the most mature communities in Jing an. In leasing market Ladoll kept a high renting rate for its close to West Nanjing Rd Commercial Area. Now the Jing an district government is planning to rebuild the old lane house near Ladoll and aims to form a Ladoll Golden City. When finished, it will further enhance the price of Ladoll. It is a gated community where the fact that the club is open for public and has no entrance to Ladoll is considered to affect the price. Type/Floor Area(M 2 ) Price 1Br / 9F 80 m 2 320,000 3Br / 12F 161 m 2 660,000 3Br / 6F 175 m 2 700,000

27 (c) Redevelopment and Regeneration : Xintiandi Luwan district government gave permission to the Shui On Group of Hong Kong to the redevelopment of 52 ha of downtown Shanghai, master planned by the American SOM in The project has a total gross floor area of 1.3 m² with a split officesresidential-commercial. The flats range in size from 90 to 400 sq.m (at $7K/m².). Offices are grade A quality reflected in rentals of $1.5/day/m²The programme was affected by the need to relocate existing households which was the responsibility of the developer (having to identify housing for 50% of the families in agreed locations and provide the money to compensate those who found their own new accommodation). A key part of the approach has been to restore some of the older houses in the project area. It has five components A. Taipingqiao Lake and Park : It covers 44,000 m² of green space and 12,000 m² of lake area. In addition, there are more than 200 underground parking spaces hidden below the green space. B Shanghai Xintiandi: A shikumen-inspired shopping, dinning and entertainment complex of some 30,000 m² composed of two block. The North Block has restaurants, bars, cafes and international stores. The South Block is more modern design, including a 25,000 m² shopping plaza. C. Lakeville at Xintiandi: An up-market housing development around the man-made lake, with a gross floor area of 680,000 m², D Corporate Avenue: The project's professional office district. Occupying a gross floor area of 500,000 m², Corporate Avenue is being built along the 1.2km stretch of Hubin E Shui On Group Tower: Planned into the design is a super high-rise building on the northern edge of the new Taipingqiao district. The tower will eventually serve as the headquarters of the Shui On Group.

28 (e) Regeneration Project The Bridge The potential for regenerating older buildings and adapting them to new uses was illustrated on the study tour by the Bridge Project in the Lunan district. It covers an area of 10,000 sq. m. and provides 20,400 sq. m. of floorspace. This was set up five years ago through a commercial property development company to provide non-grade A office space at affordable prices for creative/media firms. It renewed a former factory manufacturing car components. It has been bought on a 20 year lease, with 7/8 year sub-lets. It is low density with 20% communal space, including 2 event spaces (let at 80K Rmb / day). and has sought to incorporate ecofriendly design principles in terms of energy use, insulation etc It is now fully let, 100% to creative-industry tenants, employing 1000 workers. 64% of whom are prestige international firms e.g. ROM architects. Its success has been attributed to defining the client in advance and a care for detailed design. Company No. of Type firms % Design Services 20 29% Planning & 24 34% Consultancy Media & 6 9% Culture Others 20 28% Total % Before After

29 (e) Preservation : Longtangs About 400 homes have been put on a "municipal preserved building" list that prohibits them from being torn down, with the potential for heavy fines if they are destroyed by developers. Of particular interest however are the Longtangs. Until recently 80 per cent of Shanghai s residents lived in longtangs. Although more than four-fifths of the original longtangs have been demolished to make way for new high-rise buildings, there are still 9,000 remaining. Two and three storey attached buildings facing the street form a courtyard filled with more low housing. Inside the protected place people grow plants and live an almost village-like life in the centre of the city. City planners in Shanghai are introducing a plan to preserve the city's remaining historical buildings called "longtangs," or residential alley houses. The current plan, which was proposed by local officials of one of Shanghai's wealthiest districts and the city's land bureau, aims to restore the alley houses, rather than demolish them, and reduce the density of the neighborhoods by more than 50 percent. The alley homes, three-story dwellings are fusion architecture that often have Chinese-style stone gates and courtyards but use European building materials like brick, were originally meant to be single-family residences when the buildings were built in the 1920's and 1930's but now have multiple occupation. The plan wants to make the longtangs single-family residences once again. Renovations on the buildings may take up to two years, during which all the families will be required to move out. Once the renovations are complete, families will be given the option of being able to move back in at a discounted price, which will be subsidized by the government, if they can afford to.

30 5. LESSONS FROM EUROPE As part of the preparation for the study tour the METREX partners prepared short briefing papers to provide background information to our Chinese colleagues. These also provided the context for a talk presented at the in-house seminar setting out the European perspective on metropolitan development. This section summarises the key issues raised with our Chinese counterparts. There were four components to the talk: 1. The Metropolitan Regions of Europe 2. Why there is a new policy focus on them 3. Common Issues faced by Metropolitan regions 4. Implications and relationship to Shanghai 1. European Metropolitan Regions Europe and China have a common challenge of high population density. Although China has a lower urban population when compared with Europe (at 75%) it is urbanizing rapidly. Europe has now reached a point where there is a great interdependence of metropolitan areas. Because of the recent enormous investment in high speed road and rail links most people now are living within 45 minutes of a major urban centre. 2. Growing Policy Focus There is a growing international policy agenda for urban areas, typified by the UN habitat Vancouver declaration and commitment to the 2008 Nanking conference on Harmonious Cities. This has arisen because: Metropolitan Areas are seen as the drivers of economic growth either in terms of sustaining successful Metro-regions (e.g. London, Paris, Stockholm & Stuttgart) or helping growing metro-regions (e.g. Glasgow, Madrid, Istanbul & Vilnius); Major social needs are increasingly concentrated within the metropolitan cores in terms of the need for Employment, the quality of housing and environment, health standards, educational standards or racial issues; Major causes of environmental change are urban life styles and patterns of urban development, for example energy consumption, travel patterns, waste generation or flood risks