Nantong is now home to Jiangsu province's national comprehensive bonded zone after getting the green light to upgrade its export-processing zone in January from the State Council.

The newly unveiled zone has a planned area of 5.29 square kilometers, almost twice the size of its predecessor in the Nantong Economic and Technological Development Area, said local officials.

The zone is composed of two parks. The 1.5-kilometer Park A is located in the former export-processing zone while Park B occupies an area of some 4 square kilometers, adjacent to a planned container dock with an annual handling capacity of 2 million twenty-foot equivalent units.

Officials say the zone's infrastructure investment is expected to reach 700 million yuan ($112.49 million).

And the zone's authorities are already speeding up the construction of roads, supervisory buildings and patrol paths in Park B.

In addition to expanding the size of the original park, the new zone is expected to take on more functions, such as port operation, exhibition and foreign trade, local officials said.

For example, port operation will cover loading, unloading, storing and transferring cargo imported or exported through the zone, they said.

Zhang Junfeng, a procurement manager at Nantong Hongbo Machinery Co Ltd said that the new function will benefit his company that manufactures hatch covers, ship propellers and other vessel components.

In the past, the company was often forced to ship some of its products to the city of Zhang Jiagang in southeastern Jiangsu, Zhang said.

"But now enterprises like mine can expect lower costs because the new zone will spare us the trouble of traveling to other cities by introducing port operations," Zhang said.

Meanwhile, the zone will also launch exhibitions and other trade activities by making full use of its favorable location, fast clearance, and bonded processing and logistics, officials said.

All functions will form a new service system, including bonded processing, warehousing, procurement and distribution, trade, research and development, inspection and maintenance, they added.

They also said the upgraded zone will offer a number of preferential policies to companies located in the area.

Those companies will be exempt from customs duties and value-added taxes on their imported equipment.

Their export-oriented goods or those traded between enterprises in the zone will also be exempted from value-added taxes and consumption taxes.

In addition, tax rebates will be granted for water, electricity and gas expenses.