The second phase of China's first systematic container port renovation project kicked off at Luojing Port in Shanghai on Wednesday, aiming to strengthen the port's position as a hub and support the nation's dual circulation development and high-level opening-up.

As one of the city's major transportation projects, the automated container terminal at Luojing has been refurbished from a traditional port mainly used to transport bulk cargo like coal and ore, Gu Jinshan, chairman of Shanghai International Port Group, said during the launch ceremony.

With a designed annual capacity of 2.6 million TEUs (20-foot equivalent units), construction of the first phase of the project was completed in December, Gu said.

"The new capacity will further expand Shanghai port's container throughput capability, enhance transportation efficiency with improved competitiveness, and help SIPG better serve economic and trade activities in the Yangtze River Economic Belt as well as China's coastal areas," Gu said.

Shanghai Port has maintained its position as the world's busiest container port for 14 years. Container throughput at the port exceeded 49 million TEUs last year, according to port operator Shanghai International Port (Group) Co.

"Being an important part of Shanghai's international shipping center development, Luojing Port looks to further expand and optimize the capacity of Shanghai's port to facilitate China's dual circulation development pattern to let domestic and foreign markets complement each other," said Song Guanghua, an official from the Shanghai Municipal Transportation Commission.

In the dual circulation development pattern, the domestic economy is the mainstay and the domestic and international economies complement each other.

Song said Luojing Port envisions building an automated container port with a capacity of 6 million TEUs. Its second phase, which began development on Wednesday, will add another 1.4 million TEUs of capacity.

In addition to its automated container loading and unloading facilities, Luojing has taken the lead among domestic ports in applying domestically developed intelligent operation and management control systems, known as the brains of the new port, according to Zhou Wei, general manager of SIPG's Shanghai Luodong Container Terminals.

"The future development of Luojing Port will focus on the exploration of new technologies, lowering logistics costs by supporting the development of the Yangtze River Economic Belt and the integration of the Yangtze River Delta region, as well as facilitating China's dual circulation," Zhou said.