●  Ningbo Daxie Development Zone (hereinafter referred to as NDDZ) is located in the middle part of China coastline, and at the T crossing point of Yangtze River golden watercourse and golden coastline. It is about 40 kilometers from Ningbo downtown.

●  NDDZ borders on the international navigation route and has Zhoushan Archipelago as its natural shelter.

●  It boasts 10.7 kilometers of deep-water coastline, with water depth reaching 20-30 meters at about 150 meters away from the shore. The point closest to the continent is less than 500 meters.

●  Its spacious area allows for warehousing industry and the development of various sorts of industrial projects.

●  NDDZ is connected with the national road network through Shanghai-Hangzhou-Ningbo Expressway, and with the national railway network through Xiaoshan-Ningbo Double Track. Daxie is about 50 kilometers away from Ningbo Lishe Airport, with expressway to connect them.

To develop Daxie Island is the important decision made by Mr. Rong Yiren, former vice chairman of the state and the founder of the China International Trust and Investment Corporation (CITIC). It is also a major investment measure in the development history of CITIC Group. On March 5, 1993, CITIC Group was approved by the State Council to undertake the overall development of Daxie Island, and the development zone adopts the policies of state-level economic and technological development zones. CITIC Daxie Development Company was thus established, and Daxie Development Zone Administrative Committee, an agency of Ningbo Municipal Government, was set up in the meantime to perform administrative functions on behalf of the municipal government.

Founded in October 1979, CITIC Group is a state-owned enterprise directly under the State Council of the People’s Republic of China. It is a pilot spot and important window of China’s opening up to the outside world. Now CITIC Group has been developed into a large-scale multinational enterprise group integrating services such as finance, information, investment, consultation, real estate, tourism and trade.

The development target of NDDZ is to turn Daxie Island into a port and export-oriented economic development zone, with port in the lead, industry as the foundation, export processing, domestic and foreign trade as well as warehousing and transportation as the pillar, with well-developed tertiary industry, sound functions and elegant environment.

NDDZ has invested more than a cumulative total of ￥3 billion to upgrade the infrastructure such as water supply, electricity supply and road construction. Currently, in NDDZ, the sound road networks and ample water and electricity supply are able to satisfy various requirements of construction of all sorts of projects.

l         Water supply

Water for industrial and daily use is supplied via Ningbo water supply system, with a daily capacity of 150,000 ton. The trunk main in the zone is 800-1,000 mm in diameter.

Raw water supply project is being planned. When complete, the daily capacity of water supply will reach 200,000 tons.

●   Electricity supply

With an installed capacity of over 4.5 thousand KW, Ningbo has become a critical energy base in east China.

In DNNZ electricity is supplied through east China electricity supply system. At present, one 110KV and three 35KV transformer substations with double-circuit electricity supply have been constructed. Another three transformer substations, one 35KV, one 110KV, one 220KV, are being planned.

●  Steam supply

Located at Xiebei Petrochemical Industrial Park, Daxie Thermal Power Plant is to be completed and put into operation before the end of 2004. The plant is installed with two 50,000KW double extraction condensing steam turbines, equipped with two circulating fluidized bed boilers each with a capacity of 280 t/h. The steam supply capacity per hour reaches 400 tons of 10 barg and 40 barg.

●   Natural gas

Natural gas pipeline from East Sea Chunxiao Natural Gas Field is to be built through the mainland side of Daxie Cross-sea Bridge. The pipeline will start operation at the end of 2004 or at the beginning of 2005, with an annual supply capacity of 2.5 billion cubic meters.

●    Sewage disposal

Two sewage treatment plants are to be built in DNNZ, with a daily sewage treatment capacity of 40,000 tons. One of the plants is to be completed in 2004.

●   Communication

Various communication services are available, such as program-controlled telephone, wireless communication, fiber access and broadband data exchange.

After the construction of nearly one decade, the infrastructure in NDDZ has been well established, breakthroughs have been made on major projects, the environment is improving and the economic aggregate has reached certain level. At present, the total implemented  project investment has reached ￥29.06 billion, with US$930 million of foreign investment and ￥21.38 billion of domestic investment. In the first six months of 2003, the total implemented investment on major projects amounted to ￥24.3 billion, with US$750 million of overseas investment and ￥18.09 billion of domestic investment. Besides, the project of Mitsubishi PTA and the project of PetroChina Orimulsion transfer have been approved. The large and medium sized projects, including LNG power plant, Mitsubishi C4 and PC, Dow Corning silicones and Rhodia special TDI, are under negotiations. More than 100 renowned enterprises at home and abroad have established enterprises in NDDZ, such as British Petroleum, Hong Kong Merchants Group, Sinopec, and Yantai Wanhua. NDDZ has become a zone led by port-related industries such as port storage and transport, petro-chemical engineering, supplemented by feature industries including fine chemical engineering, building materials, medicine, mechanical manufacturing and textile industry, and has gradually formed wharf groups for oil product, liquefied petroleum gas, container and bulk cargo in east and west port areas.

Daxie Island is located in the middle of Beilun Port, one of the four deep-water transshipment ports in China. With Zhoushan Archipelago as its natural shelter, it enjoys small wave, stable current, wide waters and is free from ice and silt. It borders on the international navigation route, with 18.5 meters deep in the shallowest part, which meets the requirement of the free call by 200,000 DWT ships, and call by 250,000 DWT ships at high tide. The total length of the berth constructible area in the port reaches 12,652 meters and 54 berths of various scales can be built. The port has an annual handling capacity of 140 million tons, 3.5 million TEU, and transfer over 700 thousand passengers annually.

Due to the construction in the recent ten years, especially the development since 2001, the potential advantage of deep-water coastline of Daxie Island is gradually becoming the actual advantage of a modern port. Up till now, 18 berths have been built and 7 are under construction, 10 are to be built. In the first six months of 2003, the total cargo handled reached 10.11 million tons, and created custom duty of ￥1.9 billion. The port is expected to handle over 20 million tons of cargo this year and to yield custom duty of ￥3 billion. A pattern has been formed, with the west part as general wharf groups, north part as wharf groups for container, liquefied natural gas and liquid chemicals, and east part as storage and transfer transshipment wharf groups for ore and coal, liquid chemicals, liquefied petroleum gas, crude oil, heavy oil and product oil. The position of Daxie as a critical logistics and transfer base of energy and raw materials in east China and even the whole country has been established.

On October 17, 2002, upon approval by the State Council, Ningbo Daxie Port Area was open to foreign vessels. On July 3, 2003, Daxie Port Area passed all checks before being officially open to foreign vessels. The result will be declared, upon approval by the General Administration of Customs, by the Ministry of Communications.