Shanghai Zhenhua Port Machinery, which produces nearly three-quarters of the world’s quayside cranes, said Tuesday it had won a US$200 million (RMB1.52 billion) order from Dubai-based DP World, the China Securities Journal reported. The order for 15 40-foot tall twin quayside container cranes plus other equipment is scheduled for delivery in 2008 and 2009. “Shanghai Zhenhua is always able to outbid its rivals on major projects thanks to its economies of scale and lower labor costs,” Ping Jingwei, an analyst with a Shanghai securities firm, said. Shanghai Zhenhua’s net profit climbed 32% year-on-year in 2006 to US$210 million (RMB1.6 billion) as surging transnational cargo transportation drove demand for its container cranes and other port equipment. DP World is a leading logistics dispatcher running 42 ports in 22 countries. Dubai is its showcase terminal.

The northeastern port city of Dalian has been awarded special harbor status in a key step towards the establishment of a free trade zone between China, Japan and South Korea, the Shenyang Daily reported. The Dayaowan Bonded Harbor Area     – situated in the Dagushan Peninsula northeast of Dalian – will enjoy preferential tax treatment. “The area will be tariff-free for foreign cargo and will offer tax rebates for domestic cargo,” said Zhang Shikun, director of the Dalian Bonded Area Administrative Committee. “Value-added tax and GST will also be removed if they trade with each other.”

In an interview that should be required reading for anyone looking to risk money beyond China’s seaboard, William Dodson, Managing Director of Silk Road Advisors, a China-focused strategic management consultancy, tells The China Perspective about changing foreign investment patterns and government incentives for investment in China’s 2nd- and 3rd-tier cities.