China's financial center, Shanghai, is building a grain reserve warehouse to ensure its future grain supply.

According to sources at a meeting on the project held here recently, the grain logistic center will stock 350,000 tons of grain and 150,000 tons of edible oil purchased from home and abroad by 2007.

The storage capacity is equivalent to the annual consumption of a small and medium-sized city.

However, the metropolitan area's annual grain consumption averages 5.8 million tons, of which only 1 million tons is produced in the Shanghai metropolitan area. The city needs to build grain storage and processing centers to ensure its grain supply.

Water and railway traffic is linked to the warehouse located in the Waigaoqiao Bonded Area in Shanghai with a 1,000-meter special rail line.

The municipal government has planned to base another grain storage center in Zhoushan Island, which is expected to accommodate 100,000 tons of grain storage. Construction of the project will kick off later this year.

Source: Xinhua