Shanghai's Pudong International Airport is planning to invest $220m to refurbish and expand terminal 1.
Shanghai Airport Authority said that the project, which will add around 6,000m² of retail space to terminal 1, is expected to be completed by 2014.
The airport operator is preparing to enhance services inside the terminal so that passengers will spend more of their time outside the boarding area.
Jia Ruijun, vice president of Shanghai Airport Authority, was quoted by Shanghai Daily as saying that the investment is part of the company's corporate strategy to further develop non-aviation businesses.
Shanghai's Pudong International Airport, which handled 40 million passengers in 2011, is also currently building its fourth and fifth runways to meet growth in traffic.
Shanghai Airport Authority is also planning to convert the airport into a major cargo transport centre by 2015, in a bid to become an international air hub.
The planned investment follows news that the government and state civil aviation administration of Shanghai had signed an agreement to increase the number of flights to and from the city's airports.
Image: Pudong International Airport is constructing the fourth and fifth runways to handle the increasing traffic. Photo: courtesy of Alex Needham.