New 727 Billion Yuan Ping-Lu Canal to Serve as Vital Artery for Southwest China's Maritime Access, Filling Infrastructure Gap

Deep News
May 26

Recently, the Ping-Lu Canal, a major infrastructure project in China with an investment of 72.7 billion yuan, has achieved over 94% completion of its total construction volume. The three main hubs of the canal are now structurally complete and have entered the commissioning phase. According to the plan, trial navigation is scheduled to commence in September 2026. An expert from the ASEAN Research Center at Guangxi Minzu University noted in an interview that, as Guangxi's "century project," the Ping-Lu Canal will establish a direct inland waterway from Southwest China to the Beibu Gulf. This will fundamentally alter the long-standing pattern where "Guangxi goods" had to take detours through Guangdong and Shanghai, despite closer alternatives. Furthermore, the canal will address critical infrastructure gaps, enhancing connectivity between China and ASEAN and supporting the New International Land-Sea Trade Corridor.

The Ping-Lu Canal stretches 134.2 kilometers, starting from the Pingtang River mouth in the Xijin Reservoir area of Hengzhou, Nanning, Guangxi Zhuang Autonomous Region. It runs north to south, passing through Luwu Town in Lingshan County, Qinzhou, and follows the Qin River into the Beibu Gulf. Construction officially began in August 2022, with all 27 main bridges spanning the canal set to be completed by April 28, 2026. In practice, the transformative impact of the canal has already garnered significant attention at the regional cooperation level. Recently, Singapore's Senior Minister Lee Hsien Loong led a delegation to Nanning, Guangxi, with a key focus on inspecting projects including the Ping-Lu Canal and the development of Beibu Gulf Port as part of the New International Land-Sea Trade Corridor. Lee expressed anticipation for continued close interaction with Guangxi, leveraging platforms such as the New Western Land-Sea Corridor and the China-ASEAN Expo to deepen and broaden cooperation in areas like trade, logistics, connectivity, and corridor development.

The expert analyzed that, from the perspective of the entire Southwest China region, the New International Land-Sea Trade Corridor, jointly promoted by China and Singapore with Chongqing as a hub, is embarking on a new chapter of development through land-sea multimodal transport. Although the project has achieved numerous successes, it still faces challenges such as inadequate infrastructure, logistics, and cargo volume. Once the Ping-Lu Canal becomes operational, it will effectively address these infrastructure shortcomings for the New International Land-Sea Trade Corridor.

The strategic value of the canal extends far beyond optimizing domestic logistics in China. The expert further elaborated on its profound impact on China-ASEAN trade from three dimensions. In the realm of land-sea multimodal transport, with the advancement of the China-Laos Railway and future projects like the China-Thailand and China-Vietnam railways, the infrastructure landscape for connectivity between China and ASEAN countries is undergoing profound changes. The opening of the Ping-Lu Canal, both currently and in the future, will play a crucial role in this process, further strengthening the links between ASEAN countries and the Chinese market, as well as the broader Asia-Europe market.

The effects of the Ping-Lu Canal transcend mere shipping or corridor economics, significantly influencing investment layouts for logistics enterprises and industries along the route. Both domestic capital and investments from ASEAN countries are expected to accelerate their convergence along the canal, making it a key area for China-ASEAN trade and investment, particularly in industrial development.

As a landmark large-scale inland canal project in China, the operationalization of the Ping-Lu Canal will also provide opportunities for exchange and cooperation with other Southeast Asian countries regarding port and canal construction. Currently, projects such as Thailand's Land Bridge and Cambodia's Techo Funan Canal are advancing, and the experience from the Ping-Lu Canal is expected to promote deeper regional infrastructure cooperation.

Upon completion and operation, the Ping-Lu Canal will directly establish the shortest, most economical, and most convenient water transport route from Guangxi and Southwest China to ASEAN regions. For goods from Southwest China, using the Ping-Lu Canal for maritime access will shorten the inland waterway distance by over 560 kilometers compared to routing through Guangzhou Port, potentially saving approximately 5.2 billion yuan in transportation costs for Guangxi and the broader Southwest region.

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