Taicang Port in Jiangsu province, eastern China, plans to invest Yuan13bn ($1.6bn) to build 28 berths with a throughput of 90m tonnes from 2006 -2010, according a Chinese press report, writes Mike Grinter in Hong Kong.

The port is planning to launch the third, fourth and fifth-phase projects for its container terminal business. Twelve 20,000- 50,000 tonne berths will be constructed with an investment of roughly Yuan9bn for a handling capacity of over 5.4m teu.

Taicang Port also plans to convert two of its multi-purpose berths into container berths, the report said.

By 2010, the number of container berths will reach 20 and be capable of handling more than 9m teu.

The port will invest Yuan1.8bn to build four berths for bulk cargo, one 200,000 tonne berth, one 150,000 tonne berth and two 5,000 tonne berths.

A source close to the operation has, however, cast doubt on the ambitiousness of the project.

Apparently Taican Port has got Yuan1.8bn in funds already and is not yet looking to foreign investors for additional funds, although shipping lines willing to invest would be looked upon more favourably.

It seems that the real challenge facing Taicang Port is approval from the authorities.

The central government has to approve the construction of any dedicated container berths, as in the case of Yangshan, which must reach annual throughput of 3m teu this year to trigger the approval of the next phase.

In the case of Taicang, the trigger point will be 2m teu annually.

Observers' estimates, based on throughput forecasts, claim that Taican Port would have difficulty reaching those targets and probably the most that needs to be done for the next five years is to convert the twomulti-purpose berths.