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China has opened a major canal linking its landlocked southwestern regions directly to the sea, cutting transport distances and costs as Beijing seeks to strengthen trade links with Southeast Asia.
The 134-kilometre Pinglu Canal, which took four years to build, connects Nanning in the southern manufacturing hub of Guangxi with the Gulf of Tonkin, between China and Vietnam.
State media reported that the canal would cut the sea transport route for goods from southwestern China by more than 560 kilometres. It is also expected to reduce transport costs by 18 to 30 per cent and generate annual savings of more than 5 billion yuan ($745 million).
State broadcaster CCTV showed the first barge travelling through the canal and aired aerial footage of vessels navigating the waterway, describing it as a major infrastructure project.
Xinhua said the canal provides the “shortest, most economical and most convenient route” to Southeast Asia and is expected to support economic development in China’s southwestern regions.
The new waterway is particularly significant for less-developed and less-connected areas of Sichuan, Chongqing and Yunnan, which have historically faced greater logistical challenges than China’s more prosperous eastern regions.
Coal, ore, cereals, chemicals, agricultural products and other goods will be able to reach domestic and international markets more efficiently through the new route.
Much of the project involved widening, deepening and modifying existing waterways, while a smaller section required the excavation of a new canal.
Construction began in August 2022 and cost 72.7 billion yuan, according to Xinhua.
The canal’s opening forms part of China’s broader effort to improve transport connectivity between its inland manufacturing centres and coastal ports, potentially strengthening trade links with countries across Southeast Asia.
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