China enhances supply chains with new Pinglu Canal project

China is accelerating efforts to modernize its supply chain network by integrating digital data, automation, and advanced multimodal connections. The initiative aims to reduce both the transit time and the economic costs of moving goods across the country's industrial base.

A key component of this strategy is the Pinglu Canal in the Guangxi Zhuang Autonomous Region, which is scheduled to begin operations in September. This 134.2-kilometer canal connects the Xijiang River to the Beibu Gulf and is designed to accommodate vessels exceeding 5,000 tons.

The new route is expected to shorten the inland waterway distance to the sea by approximately 560 kilometers compared to routes through Guangzhou port. This efficiency is projected to reduce total freight transport costs by between 18% and 30%. The construction of the canal, which cost an estimated 72.7 billion yuan (approximately 9.33 billion euros), represents the first river-to-sea canal project in China designed and coordinated at the national level since 1949.