VZCZCXRO1113
RR RUEHCN RUEHVC
DE RUEHGH #0267/01 1681106
ZNR UUUUU ZZH
R 171106Z JUN 09
FM AMCONSUL SHANGHAI
TO RUEHC/SECSTATE WASHDC 8054
INFO RUEHOO/CHINA POSTS COLLECTIVE
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RULSDMK/DEPT OF TRANSPORTATION WASHINGTON DC
RHEHAAA/NSC WASHINGTON DC
RUEHKO/AMEMBASSY TOKYO 0688
RUEHUL/AMEMBASSY SEOUL 0480
RUEHGH/AMCONSUL SHANGHAI 8701

UNCLAS SECTION 01 OF 02 SHANGHAI 000267 
 
SENSITIVE 
SIPDIS 
 
TREASURY FOR OASIA/INA/HAARSAGER AND WINSHIP 
DEPT FOR EAP/CM, INR/B, EEP/TRA/AN 
USDOC PASS BUREAU OF ECONOMIC ANALYSIS 
USDOC FOR ITA DAS KASOFF, MELCHER, OCEA 
STATE PASS USTR FOR STRATFORD, WINTER, KATZ 
NSC FOR LOI, SHRIER 
USPTO FOR BOLAND, WU 
STATE FOR EAP/CM, EB AND E 
TRANSPORTATION FOR OST X-1, X-40 
 
E.O. 12958: N/A 
TAGS: EAIR ELTN ECON PGOV ECIN CH
SUBJECT: SHANGHAI'S MEGA TRANSPORTATION HUB ON COURSE TO LAUNCH 
 
REF: SHANGHAI 60 
 
SHANGHAI 00000267  001.2 OF 002 
 
 
¶1.  (U) In a May 26 briefing for diplomats arranged by the 
Shanghai Foreign Affair Office, Shanghai authorities said the 
Hongqiao Comprehensive Transportation Hub (Hongqiao Hub), one of 
China's largest infrastructure projects (reftel), is on schedule 
to begin partial operations before for the 2010 World Expo.  The 
mega project, located in the western suburbs of Shanghai, will 
integrate the new terminal of the Shanghai Hongqiao 
International Airport, the magnetic levitation train (Maglev), a 
high speed railway connecting Shanghai to Beijing, inter-city 
shuttle trains, 5 subway lines, 4 highways, and an extensive bus 
network.  The complex will also include a large shopping mall 
that covers 1 million square meters above ground and 500,000 
square meters below ground, as well as a large commercial 
building.  Only the airport terminal, one subway line (the 
number 2 line), inter-city shuttle and bus terminal are slated 
to be complete by the World Expo.  Other components will be 
added later.  End summary. 
 
 
 
Hongqiao Airport - Not Competing with Pudong Airport 
 
--------------------------------------------- ------- 
 
 
 
¶2.  (U) According to Hongqiao Investment Corporation General 
Manager Jing Zhuanglong, the Hongqiao Aiport will be a major 
component of the 26 square kilometers hub, and like the rest of 
the hub components, will be focused on domestic transportation. 
After completion, the Hongqiao Airport will have two runways and 
a 40 million passenger annual capacity.  Jing believes the 
revamped Hongqiao Airport will not compete with Shanghai Pudong 
International Airport, which will remain the premier 
international airport in the city.  (Shanghai Pudong 
International Airport was constructed in the 1990s and entered 
into operation in 1999 .  The much older Hongqiao Airport 
currently only has international flights to Japan and Korea.) 
 
 
 
Why Place the Hub in Densely Populated Hongqiao District? 
 
--------------------------------------------- ------------- 
 
 
 
¶3.  Jing noted the rationale for the city to locate the Hongqiao 
Hub in the densely populated district of Hongqiao.  Since the 
1970s, Shanghai set aside land for a runway expansion at 
Hongqiao Airport, which was planned to be the only airport in 
the city.  The land that was set aside for the additional runway 
also had sufficient space for the Hongqiao Hub.  After 
considerable thought, the city decided to integrate the 
Shanghai-Beijing High Speed Rail terminal planned for Qibao, 
another Shanghai district, with the Hongqiao Airport/Maglev 
project to create the mega transportation hub. 
 
 
 
A Project with Political Backing 
 
-------------------------------- 
 
 
 
¶4.  (U) According to Jing, Shanghai leaders view the Hongqiao 
Hub as an important project for integrating the city with the 
rest of East China.  He said the project is part of Shanghai's 
five key projects announced by Shanghai Party Secretary Yu 
Zhengsheng.  Jing said the project has been planned for years, 
and the money had already been set aside for its construction. 
The financial crisis has had little effect on the project, and 
no stimulus funds from the Central Government or Shanghai 
Municipality are involved.  Jing added the financial crisis did 
bring one side benefit for the project in the form of cheaper 
 
SHANGHAI 00000267  002.2 OF 002 
 
 
financing. 
 
 
 
Comment:  A Sign of Shanghai's Political Climate Change 
 
--------------------------------------------- ---------- 
 
 
 
¶5.  (SBU) Shanghai leaders have been eager to showcase the 
Hongqiao Transportation Hub as a key to greater economic 
integration of Eastern China.  The tour of the new complex for 
foreign diplomats is one in a long series of displays and events 
to highlight the facility.  Along with the scale model 
prominently displayed at the Shanghai Urban Planning Museum, 
there are several other scale models on public display sprinkled 
throughout the city, and media reports regularly update the 
public on progress of the project.  This is a world away from 
early 2007 when the massive project initially got underway. 
Nary a footnote was made in the local media at the time.  The 
reason - the sacking of Party Secretary Chen Liangyu for 
corruption in the fall of 2006 made him and his legacy of costly 
showboat projects politically untouchable.  The Shanghai 
Government ordered a halt to all of Chen's large-scale plans and 
a thorough review.  The gradual return to prominent showcasing 
of such mega projects means Shanghai is again seeking center 
stage in China's push to develop into a modern, 
economically-developed country.  It also means former Party 
Secretary Chen Liangyu's tainted legacy has now faded into a 
more distant memory. 
SCHUCHAT