This is an important measure the city government has taken to meet international standards the city will face after China's entry into the World Trade Organization,'' Executive Vice-Mayor Chen Liangyu said.

The newly established company is a joint-stock venture with a registered capital of 100 million yuan (US$12 million), which is invested by Shanghai Information Investment Inc and another nine local companies.

Insiders said E&P is a company established with the support of the Shanghai government. It will merge Shanghai EDI Centre, Shanghai Port & Shipping EDI Centre and Shanghai E&T Network Technology Co Ltd.

"But the new company will operate according to the market economy system,'' said Chen.

Shanghai, he said, has paid great attention to establishing an international e-business network which has become part of the city's new five-year programme.

"Setting up E&P will contribute much to the city's attempt to build it into an international shipping centre as soon as possible,'' the vice-mayor said.

The city is planning to build a deep-water port close to Zhejiang Province to satisfy the growing demand for the container business. The new port will also help Shanghai compete with counterparts in the neighbouring East Asian countries.

"The objective needs an advanced port logistics information system and an international e-business unified platform,'' he said.

E&P Chairman Cai Xiaohong said the new company has pledged to take three years to realize the target by cooperating with IT and logistic enterprises at home and abroad.

Also on Sunday, E&P signed letters of intent with HP, Maersk Sealand, Commerce One of the United States and Fedex-DTW of Japan for cooperation.

(China Daily 07/30/2001)