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China's State Council has approved the establishment of Dayaowan Bonded Harbor Area in Dalian, Liaoning Province, which is the third such port area in China.

The former two were Dongjiang Bonded Harbor Area in Tianjin, an industrial center in North China and Yangshan Bonded Harbor Area in Shanghai, China's economic hub.

The Dayaowan Bonded Harbor Area will enjoy preferential taxation and foreign exchange policies, said Rong Xiaofan, deputy director of Dalian Customs.

The area will cover 6.88 square kilometers and includes terminal operation, logistics, processing and other services, according to Zhang Shikun, director of the area.

"The area is expected to increase China's share in the northeast Asian shipping industry. It is also a major step towards forming a free trade zone between China, Japan and the ROK," said Zhang.

"The Dayaowan Bonded Harbor Area provides opportunities to Dalian and its nearby areas. It will also facilitate development of China's northeastern region and boost the country's economic and trade cooperation with northeast Asian countries," said Xia Deren, mayor of Dalian.

Since its operation in December 2005, Shanghai-based Yangshan Bonded Harbor Area has spurred capacity of Shanghai Port, which handled a record high 10.8 million TEUs in the first half of the year, up 17.8 percent year on year, 143 million tons of cargo and 89.45 million tons of foreign trade goods, up 7.5 and 9.5 percent, respectively.

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