Report reveals strong annual Shanghai shipping figures

They are also being allowed in constructing and managing local railways and ferries as well as bridges and tunnels attached to these projects.

Foreign firms are also banned from producing traditional Chinese tea－but in the zone they can engage in the business through a joint venture with Chinese firms.

An innovative business that operates in the FTZ which enables clients with goods less than one container to share one TEU when using international transfer shipping services have significantly reduced shipping cost, the report said.

"When the business matures in the FTZ, shipping cost of international transfer of less-than-container-load in Shanghai will be about 15 percent lower and shipping time 20 percent less than those in Hong Kong or Singapore," said Zhuang Hongbo, manager of an FTZ-registered shipping enterprise.

Analysts and market insiders said that Shanghai needs to catch up in various aspects in order to gain more pricing power in the international shipping industries and rivaling traditional international shipping centers such as London and Singapore.

Shanghai needs to improve its data and information infrastructure in order to have better accesse to international market dynamics especially in terms of trading and leasing price systems, according to Wu Minghua, a Shanghai-based shipping expert.

Professionals in pricing and risk management in ship financing and insurance are also in short supply, according to Wu.

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