Shanghai began to build its largest grain reserve and transfer base Thursday with an estimated investment of 1.55 billion yuan (about 186.7 million US dollars), according the municipal grain department.

The base will cover an area of 68 hectares and, apart from grain storage and processing facilities, it will also boast accessory facilities including three tracks of rail and a dock for ships up to five thousand tons in capacity. Construction will last three years.

A source of the department said the base will have a grain storage capacity of 350,000 tons and vegetable oil storage capacity of 200,000 tons.

The base can also process 800 tons of wheat and 300 tons of corn daily and transfer 4.63 million tons of grain annually.

Experts believed the base will help to secure the food security of China's biggest city Shanghai and to facilitate the grain trade in cities and provinces along the Yangtze River.