China launches new canal, first of its kind since 1949, giving inland access to sea lanes

China officially opened its landmark Pinglu Canal to navigation on Wednesday, creating a new maritime gateway for the country’s southwestern hinterland and providing a shorter route to Southeast Asia as Beijing seeks to deepen trade with the region. The 134.2km (83.4 mile) waterway links Nanning, the capital of the southern region of Guangxi, to the Gulf of Tonkin, known as the Beibu Gulf in China, allowing cargo from inland provinces to reach the sea without taking a roughly 560km detour via Guangzhou, cutting both transit times and logistics costs. With the canal’s opening, two new freight routes have begun operation – an international route linking Nanning with Can Tho in Vietnam, and a domestic route connecting Nanning with Yangpu in southern Hainan province, according to state broadcaster CCTV. About 30 cargo vessels carrying goods such as building materials, coal, minerals, steel and fertiliser are set to pass through the canal on its opening day, with Nanning Port and Qinzhou Port handling operations, the state media report said. The first of four passenger routes along the waterway has also begun operation, according to the live broadcast by official media. “Pinglu Canal is an important piece of innovative infrastructure,” said Zhou Mi, a researcher at the Chinese Academy of International Trade and Economic Cooperation, a think tank under China’s Ministry of Commerce. “Beyond providing a more efficient route to the sea, connecting provinces and promoting economic cooperation, it also creates an opportunity to modernise China’s transport system,” he added. Zhou also said the canal provided a platform for exploring more efficient and more environmentally friendly forms of transport. “This could create important conditions for the Chinese economy and for greater coordination with neighbouring countries, while supporting the optimisation and upgrading of regional industrial and supply chains through greater use of smart technologies.” With a planned investment of 72.7 billion yuan (US$10.8 billion), the project, which began construction in August 2022, is designed to accommodate vessels of up to 5,000 tonnes and save more than 5 billion yuan in overall transportation costs each year. The canal is the first man-made waterway connecting a river to the sea to be built since the founding of the People’s Republic of China in 1949, state-run Xinhua News Agency reported. It is equipped with a tiered navigation zone system to facilitate the movement of inland vessels, allowing qualified vessels to travel through the canal and into the sea without transferring cargo to another ship. The canal’s opening comes after a series of navigation tests. In mid-August, four merchant vessels ranging from 1,000 to 5,000 tonnes conducted phased trials along the canal’s main channel, testing the safety and reliability of the waterway, locks, anchorages and service areas, state media reported. Earlier that month, a maritime patrol vessel completed the first full-route transit test along the waterway, according to the canal’s operator. Late in August, the canal’s first command and management vessel was delivered to oversee navigation and handle emergency responses along the waterway. The canal aims to give China’s less-prosperous inland regions quicker and easier access to global sea lanes, boosting local industry and strengthening trade with the Association of Southeast Asian Nations (Asean), China’s largest trading partner as a bloc. That ambition is already taking shape. Last Thursday, a multimodal freight train carrying more than 370 tonnes of construction machinery and other products arrived in Guangxi, after departing from Hunan province, with the cargo scheduled for export following the canal’s opening. The project is also part of a broader push to expand China’s inland waterways, with several other provinces, including Jiangxi, Hubei, Hunan and Henan, planning or advancing ambitious multibillion-dollar waterway expansions to boost local economic growth. By using the canal, provinces including Yunnan, Guizhou, Hunan and Sichuan, as well as the metropolis of Chongqing, could see their logistics costs reduced by around 18 per cent to 30 per cent, making it “the shortest, most economical and most convenient route to the sea in the western region”, according to an August 13 report by Yunnan authorities. The canal’s construction has also spurred a broader build-out of supporting infrastructure and transport links. At Nanning Port’s Liujing operations area, berths have been upgraded to handle vessels of up to 5,000 tonnes. The Beibu Gulf Port is also seeking to attract cargo from Chongqing, Sichuan and Yunnan, while cross-border railways such as the China-Laos Railway are expected to feed into the network, according to state media reports. The opening comes as China’s trade with Asean continues to grow. Beijing has increasingly sought to strengthen supply chains and economic ties with the region as tensions with the West persist over trade and technology. Total trade between China and Asean reached US$862.75 billion in the first eight months of this year, up 25.6 per cent from a year earlier, customs data showed. China’s exports to Asean stood at US$546 billion, up 25.8 per cent. In contrast, exports to the US rose 6.2 per cent in dollar terms over the same period. The opening came just ahead of this year’s China-Asean Expo in Nanning, an annual trade and investment fair showcasing products ranging from agricultural goods and food to machinery and hi-tech equipment.

China launches new canal, first of its kind since 1949, giving inland access to sea lanes

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Newly opened Pinglu Canal will allow cargo from inland provinces to reach the Gulf of Tonkin, avoiding a 560km detour, deepening trade ties

Newly opened Pinglu Canal will allow cargo from inland provinces to reach the Gulf of Tonkin, avoiding a 560km detour, deepening trade ties