China is close to opening a major new canal that could significantly reshape cargo movement between its inland regions and Southeast Asia.
The US$10 billion Pinglu Canal is expected to be completed and begin operations by the end of 2026, the South China Morning Post reported.
Located in the Guangxi Zhuang Autonomous Region, the canal runs about 134 kilometres from the regional capital Nanning to the Gulf of Tonkin on the South China Sea. Once operational, it will directly link the inland Xijiang River system to the coast, creating a faster and cheaper shipping route.
Designed to handle 5,000-tonne vessels, the canal will accommodate large cargo volumes. The project includes three dual-lane ship lock hubs and nearly 30 new or upgraded bridges, enabling vessels to manage elevation changes and move smoothly between river networks and the sea.
Chinese officials say the canal will shorten the journey to the sea by more than 560 km compared with existing routes via Guangdong province, potentially saving millions of dollars in logistics costs and cutting delivery times for businesses in western and southwestern China.
The Pinglu Canal is a key component of China’s New International Land-Sea Trade Corridor, which aims to improve connectivity between inland provinces and global markets, particularly in Southeast Asia.
Authorities have also outlined post-construction regulations to safeguard the canal and surrounding environment, underscoring a focus on long-term, sustainable operations.
Once open, the Pinglu Canal is expected to emerge as one of China’s most important inland shipping arteries, strengthening links between the country’s interior, its southern coastline, and regional markets.
