SHANGHAI yesterday cancelled charges on vehicles
crossing the Huangpu River to spur the growth of the Pudong New Area, which is a special
economic zone east of the river, offered special policies by the central government."This is a great moment for Pudong, almost as important as the
completion of the tunnels," said Kang Huijun, general manager of Pudong Lujiazui
Group Co Ltd.
Cars passing through the city's three tunnels and across
the five bridges had been required to pay a toll of 15 yuan ($1.81) and buses 9 yuan
($1.08) since 1995. Complaints have since been arising, some even blaming it as an
obstacle for the growth of the 522-square-kilometre Pudong, which is rising to become
Shanghai's financial and trading centre and an attraction for foreign investment.
As toll collectors retreated from their posts at zero hour
(midnight) yesterday, officials, analysts and even taxi drivers are hailing the decision
as a wise one for the benefit of the city.
"Pudong's property and job markets, and its economic
growth can all benefit from this decision," said a Pudong official.
One obvious benefit will be rising sales of properties -
top-rated offices and residential houses, according to Sam Crispin, director of the
research department of FPDSavills International Property Consultants.
He expects Pudong's Grade A offices now empty to be filled
up in less than five years.
Taxi drivers expect higher income from more customers
taking cabs across the river.
China International Trust & Investment Corporation
(CITIC) Hong Kong, the operator of the three tunnels and three bridges under a
build-operate-transfer (BOT) contract, said it understood the government decision.
The company had been happy with the revenue in the past
months because of high traffic volume. However, there is a long way to go for the company
to recoup its investment. It had estimated the operation in the Yan'an Road Doublet
Tunnels would turn profitable in 2003.
The company will be compensated by payment from government
sources, 100 million yuan ($12 million) from the municipal government and 200 million yuan
($24 million) from Pudong government a year.
Investors are happy with the decision.
"The toll was one of the factors for the high cost for
companies operating in Pudong," said Pae-Kwon Park, who represents a South Korean
company.
The problem has been under local congress deputies'
attention for several years. They have repeatedly appealed to the local people's congress
to abandon the toll.
"In order to make it more convenient for people to
travel and to attract more investment to Pudong, the tolls should be cancelled," said
Chen Yongsheng who led 12 other deputies to hand a bill on March to Shanghai's 11th
Congress, again calling for the cancellation.
Chen, the former deputy general manager of Sino-Japanese
firm JVC Electronics Co Ltd based in Jinqiao, experienced the inconveniences brought by
the toll collections whenever taking a car to cross the river. |
