The city's car-plate auction system, long a bone of contention for residents, will eventually be scrapped.

The news came yesterday from Wu Yi, deputy director of the Shanghai Transport Management Bureau. "The auction system is a transitional policy and will be phased out as the city's public transport develops to a higher level," Wu said in answering questions during a regular municipal press conference.

"The time may come when the city's Metro network has reached 400 or 500 kilometers, the bus-only traffic lanes are under efficient operation and the overall transport situation improves noticeably," he said.

Wu didn't set a timetable for the phase-out. The auction system started in 2000 to control car numbers for both traffic and environmental purposes.

According to previously announced urban plans, Shanghai's subway network will reach 400km by 2010 and 500km by 2012. About 100km of bus-only lanes have been built in recent years and many more are under construction.

Wu told Shanghai Daily that there would be an increase in the number of private cars if the auction system is terminated. However, he believes owners are not likely to overuse vehicles as their environmental awareness improves.

He also pushed the case for bicycle travel. Wu said the Shanghai Engineering Administrative Bureau has planned a road network for cyclists.

Also yesterday, the city announced that it will auction 9,300 car plates to individuals and private companies this month.

It also announced new measures designed to optimize the bidding process to make sure the system, which partly crashed in January, works better this time.

The auction will be held from 10am to 11:30am on March 29.