Pinglu Canal opens to connect southwest China to the sea

The Pinglu Canal officially opened to navigation on September 16 in China’s Guangxi Zhuang Autonomous Region. Spanning 134.2 kilometers, the waterway connects the Xijiang River inland shipping network directly to the Beibu Gulf in the South China Sea, bypassing the need for cargo to detour through Guangdong province.

The canal is designed for vessels up to 5,000 tonnes and is expected to reduce inland shipping distances by more than 560 kilometers. Authorities estimate the new route could reduce logistics costs by 18% to 30% and save over $700 million in annual transportation costs. Local industries, including aluminum production and new energy battery manufacturing, have already reported significant cost savings and improved competitiveness.

Beyond domestic impact, the canal holds regional significance for ASEAN nations. Ambassadors from Cambodia and Laos noted that the waterway could facilitate easier trade for agricultural products and provide landlocked Laos with improved access to maritime routes, strengthening trade ties between China and Southeast Asia.