(ECNS) -- The Pinglu Canal in Qinzhou, south China's Guangxi Zhuang Autonomous Region will open a new transport corridor connecting western China directly to Southeast Asia.
Analysts described the canal as China's first major "river-sea" transport route designed to integrate inland waterways with maritime shipping networks.
The project is expected to improve cargo movement between western Chinese provinces and members of the Association of Southeast Asian Nations, or ASEAN, reducing transport costs and delivery times for regional trade.
Guangxi sits on the golden waterway of Xijiang River. Yet, for centuries, the river in the Pearl River basin has flowed eastward before reaching the sea. Goods from southwestern China destined for Southeast Asia had to detour hundreds of kilometers via ports in southern China, increasing transport time and logistics costs.
The Pinglu Canal is set to transform logistics by directly linking Nanning with the Beibu Gulf, shortening sea routes by about 560 kilometers and opening the most convenient waterway to the sea for Guangxi and China's vast southwestern hinterland.
Trade between Guangxi and ASEAN has expanded rapidly in recent years, driven by the benefits of the China-ASEAN Free Trade Area and the Regional Comprehensive Economic Partnership. As trade volumes surge, logistics efficiency and transportation costs have become crucial to regional competitiveness.
The multimodal transport system enabled by the Pinglu Canal is expected to dramatically reduce costs. Bulk cargo from western China will be able to travel along the Xijiang River through the canal directly to Beibu Gulf port, where goods can either be transferred onto vessels or distributed across ASEAN and other global markets.
According to expert estimates, once the canal opens, logistics costs for exports from southwestern China could fall by 18% to 30%, saving more than 5 billion yuan ($690 million) annually. That could enhance the competitiveness of industries deeply involved in intermediate goods trade with ASEAN, including automobiles, machinery, new energy products and electronic equipment.
Beyond reducing logistics costs, the canal's greater significance lies in helping Guangxi transition from a pass-through economy into a true regional hub economy.
With the integration of river, sea, rail and air transport networks, Beibu Gulf Port is expected to evolve from a standalone cargo terminal into a major international logistics hub linked to inland waterways and global shipping routes.
Minerals, fruits and agricultural products from ASEAN countries will be able to move efficiently through the canal into southwestern China, while industrial equipment, new energy technologies and electronic components manufactured in western China can be shipped rapidly to Southeast Asian markets.
As global supply chains continue to restructure, trade ties between China and ASEAN are becoming increasingly important. China and ASEAN remain each other's largest trading partners, with Guangxi serving as a crucial platform for that relationship.
The Pinglu Canal acts as a massive connector embedded in the China-ASEAN land-sea trade corridor, helping the New International Land-Sea Trade Corridor — a key logistics route linking western China to global markets — achieve a fully integrated transport network spanning rail, road, river, sea and air.
Once fully operational, the canal will make trade and supply-chain links between China and ASEAN even closer and more efficient.
(By Gong Weiwei)
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