China opened the 134-kilometre Pinglu Canal in the southern Guangxi region on Wednesday, four years after construction began, at a total investment of 72.7 billion yuan (10.9 billion dollars). The project is intended to shorten cargo routes from inland provinces to the sea and boost their trade with Southeast Asia.
A shorter route to the Gulf of Tonkin
The canal links the estuary of the Pingtang River, located within the boundaries of Nanning, the capital of Guangxi, to the Gulf of Tonkin between southern China and northern Vietnam in the South China Sea. This gives vessels from some inland provinces direct access to the sea.
Under the new river route, cargo from southwest China will no longer need to travel by ship to the major southern city of Guangzhou to reach the sea, avoiding a detour of more than 560 kilometres, according to data reported by Chinese state media.
The canal is expected to reduce transport costs by between 18% and 30% and generate annual savings of more than 5 billion yuan (739 million dollars). China’s public broadcaster showed footage on Wednesday of the first vessel passing through the canal.
Supporting trade from inland provinces
The canal is intended to improve the links between southwest China’s provinces, including Sichuan, Chongqing and Yunnan, and transport networks and overseas markets through a shorter route to Southeast Asia.
The route will allow products from these areas, including coal, mineral ores, grain, chemicals, construction materials and agricultural products, to reach overseas markets more directly.
Investment of 72.7 billion yuan
Work on the project began on August 28, 2022, with a total investment of 72.7 billion yuan (10.9 billion dollars). Most of the work involved expanding, deepening and modifying existing waterways, while excavation was limited to a small new section.
