Construction of China's first underwater observation station, which will be used to help forecast natural disasters, will begin in Shanghai early next year, the municipal ocean bureau said on Monday.

Weng Guangming, an official with the bureau, said: "The station will be like an underwater weather center that can help scientists to better understand environmental changes and sea resources, and predict natural disasters such as earthquakes."

The station will be built in the Zhoushan Islands near the estuary of the Yangtze River, about 20 km off Shanghai, he said.

The station will be mostly used to observe crust movements and to study the ocean's physical, chemical, biological and geological processes, Weng said.

According to a recent report in the Shanghai Daily, the project will involve laying a 1-km-long cable fitted with dozens of sensors on the seabed near Zhoushan Island in Zhejiang province. The project will cost about 2 million yuan ($290,000), it said.

Wang Pinxian, a member of the Chinese Academy of Sciences and a professor at Tongji University, said: "Because the devices will be placed deep in the seabed, and won't be affected by currents, they can better monitor the ocean's movements.

"Forecasts from the station will be used as part of an early warning system and give authorities more time to make disaster preparation plans, such as evacuating people," he said.

Other experts have said the observatory will also help to shed light on the Earth's dynamic changes and how they affect the environment.

"The station is expected to be the starting point for the establishment of a nationwide integrated ocean observation network," Wang said.

"Additional observation sites are likely to built in the Bohai Sea, Huanghai Sea and other sea areas in the future," he said.

"Once we have created an effective network, we will be able to generate better and more consistent forecasts."