Shanghai, China's largest port, has became the world's second-largest in terms of freight volume in 2004 after Singapore, surpassing Rotterdam in the Netherlands, a report said on Monday.

Shanghai port handled 379 million tonnes of freight last year, 19.8 per cent more than a year earlier and 2.3 per cent less than Singapore, which handled 388 million tonnes of cargo in 2004, Shanghai Daily reported.

The expanding economy driven by trade and investment in Shanghai and the Yangtze Delta cities have helped fuel the growth in the shipping business. Total trading through local customs, including both imports and exports from Shanghai and neighbouring cities, surged by 40.4 per cent from last year to hit $287.57 billion.

Fixed investment, another engine driving the economy, rose by 25.8 per cent over a year earlier to hit 308.4 billion yuan ($37.3 billion) in Shanghai, which maintained its place among the top three container ports in the world by handling 14.55 million TEUs (20-foot equivalent of containers, after Hong Kong and Singapore.

Shanghai claimed third place by container volume in 2003 when it overtook Busan in South Korea. Shenzhen port in southern China claimed fourth place in the world in 2004 by handling 13.655 million TEUs.