Massive capital investment was concentrated in Dairen (now the capital of the territory), wherein Japanese firms developed a significant industrial infrastructure, as well as creating a first class port out of the mediocre natural harbor. The facilities of the port at Dairen and its free trade port status made it the principal trade gateway to northeast China. The South Manchurian Railway Company was headquartered in Dairen, and some of the profits from its operation were channelled into transforming Dairen into a showcase city of modern city planning and modern architecture, with hospitals, universities and a large industrial zone.Low, p. 106
