The inauguration of the Pinglu Canal in China’s Guangxi Zhuang Autonomous Region promises to significantly reduce logistics costs for businesses in southwest China and strengthen trade ties with Southeast Asia. By providing a more direct route from Hengzhou to the Beibu Gulf, the canal is expected to cut transportation costs by 18% to 30%, amounting to savings of over 5 billion yuan annually.
Constructed at a cost of approximately 72.7 billion yuan ($10.75 billion), the 134.2-kilometer waterway is designed to accommodate vessels up to 5,000 tonnes. This infrastructure project forms a critical part of the New International Land-Sea Trade Corridor, enhancing connections between China’s inland regions and ASEAN markets. The new route reduces the distance to the sea by over 560 kilometers compared to traditional paths through Guangdong’s ports, offering a significant advantage to industries transporting coal, grain, minerals, new-energy materials, and automobile parts.
The canal features three navigation hubs with twin-line ship locks that manage a 65-metre difference in water levels, alongside water-recycling systems aimed at conserving over 1 billion cubic metres of water each year. Environmental considerations were integral to the project, as over 98% of the excavated earth and rock were reused, and the construction includes a fish passage and wildlife crossing to minimize ecological disruption.
With ASEAN being China’s largest trading partner—bilateral trade surpassed $1 trillion in 2025—the Pinglu Canal is poised to enhance economic connections further. In the first seven months of 2026 alone, trade between China and ASEAN reached $744.41 billion. The canal not only facilitates more efficient trade but also encourages investment and supply-chain integration along its course, benefitting both local and international markets.