China's New Canal in southern Guangxi to link inland rivers with ASEAN sea

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China is planning to invest 72 billion yuan to construct a Class I canal spanning 135 kilometers, allowing large ships of 5,000 tons to navigate through it. The purpose of building this new canal is to reduce shipping costs, shorten transportation distances, and benefit the local population.

The canal in focus is the Pinglu Canal located in Guangxi Zhuang Autonomous Region. It is the first Grand Canal connecting rivers and seas established after the founding of New China. Apart from enhancing shipping development, the canal also aims to improve the ecological environment along its route, holding significant importance.

While the benefits of constructing the Pinglu Canal are evident, some people question the necessity of investing over 72 billion yuan when Guangxi is already a coastal province with numerous rivers. The canal, starting at the mouth of the Pingtang River in Hengzhou City, Nanning, Guangxi, enters the Beibu Gulf through Qinzhou along the Qinjiang River.

The project was officially approved on March 17, 2022, and includes waterway engineering, shipping hub engineering, cross-river facility engineering, and supporting infrastructure to enable navigation of 5,000-ton ships. The estimated total investment is 72.73 billion yuan, with a construction period of 54 months.

The project will provide water security for approximately 650,000 mu of irrigation areas and is expected to add 835.7 hectares of cultivated land. It will also improve flood control capabilities and alleviate regional flood control pressures.

Upon completion, the Pinglu Canal will serve as a route for goods from Southwest China to reach the sea, shortening the voyage by over 560 kilometers compared to going through Guangzhou. The project is projected to generate substantial economic benefits, saving more than 5.2 billion yuan in transportation costs annually for areas along the Western New Land Sea Corridor.