Hengsha island has lots of resource advantages, such as location, land, coastline and waterway. It will be Shanghai's new space of strategic development in the future especially after 2020. Inspiration from the marine economy development and the strategy of coastal cities expanding new space, the paper will deliberate the new space's strategic development direction and functional orientation of Shanghai Hengsha, which consists of five aspects: the international logistics center (free port and logistics center), the modern port industry area, the high-end service area, the recreation and tourism area, the ecological town and village.