"Taking the full advantage of the iron and steel project will help Zhanjiang to become the third largest city of Guangdong province," Huang Huahua, governor of Guangdong, told Chen Yaoguang, mayor of Zhanjiang city, during the provincial NPC and CPPCC sessions.

The iron and steel project Huang mentioned refers to a massive steel production base in Zhanjiang, which won approval from the National Development and Reform Commission recently. Owned by Baosteel, China's largest steelmaker, the base is expected to have an annual production capacity of over 10 million tons.

A Baosteel source says the company is seeking to raise 30 billion yuan ($4.32 billion) through loans and stock sales for the Zhanjiang base.

This is the first time that such a large-scale project has been planned in Zhanjiang since 1984, the year the city was approved as one of the first State-level development zones for economy and technology. Planning for the project actually began15 years ago.

"It offers an excellent opportunity for Zhanjiang to catch up. The city has been in an economic stagnation for so long," the 21st Century Business Herald quoted Zhanjiang Party chief Yu Kanfa as saying.

The city is also poised to continually expand its port production capacity, reaching an annual bulk output of 200 million tons within two years, and becoming an international shipping center in the pan-Beibu Bay region.

Competitiveness lost

In 1984, China opened 14 coastal cities to overseas investment as a further step to boost the country's economic development after establishing five special economic zones. Zhanjiang was one of them.

Since then, the city has been viewed by many as a leading for economic development in western Guangdong province. But the fact is not satisfying. "We fell far behind most national development zones in the country's eastern part, not to mention the Pearl River Delta," Yu says.

"We used to have a certain sense of superiority as Zhanjiang was a hot destination for investment in the early 1990s," says Zheng Zhou, a local businessman selling shipping accessories. "Yet this superiority failed to generate substantial benefits for local people. For instance, the 1.3-billion-yuan bridge over the Zhanjiang Bay was finished two years ago, but I didn't see it bring any changes."