China's new 134-km long Pinglu canal cuts 560 kms

China inaugurated the Pinglu canal, a 134.2-kilometre waterway, after a construction period of over four years. This new canal cuts through mountains and rivers in southwestern China, creating a direct link to the sea and providing the region with a shorter route for trade with Southeast Asia. The canal connects Nanning, the capital of the Guangxi Zhuang Autonomous Region, with the Beibu Gulf, enabling goods such as coal, ore, grain, new energy materials, and automobile parts to reach global markets more efficiently.

The Pinglu canal, costing 72.7 billion yuan (approximately USD 10.75 billion), is part of the New International Land Sea Trade Corridor. This project aims to link China's inland provinces with ASEAN and other global markets. Construction involved widening, deepening, and straightening existing rivers, as well as excavation through dry land and mountainous terrain.

A significant engineering challenge was a 65-metre difference in water levels along the route, which was addressed by constructing three navigation hubs equipped with twin line ship locks to raise and lower vessels.

The new canal significantly reduces the distance from Nanning to the sea, cutting more than 560 kilometres off the previous inland route via Guangdong province. This shorter route is expected to cut logistics costs by 18 to 30 percent and save over 5 billion yuan (around USD 1.4 billion) annually in transportation expenses. With China's trade with ASEAN reaching USD one trillion for the first time in 2026, the canal is expected to further boost trade, fostering more cross-border investment and deeper integration of regional supply chains.

Notably, the Pinglu canal marks the first river-to-sea canal project planned and coordinated at a national level since the establishment of the People's Republic of China in 1949, as highlighted by officials. Built with environmental concerns in mind, the canal reuses over 98% of the excavated earth and rock, features a 480-metre fish passage, and includes a separate crossing for land animals, ensuring safe wildlife movement across the canal.

With the canal now operational, China aims to strengthen its trade position in the region while addressing the historical cost disadvantage faced by its landlocked southwestern provinces.