China's Pinglu Canal officially launched in September, creating a new waterway directly linking the inland rivers of Guangxi with the Beibu Gulf and the sea.
Stretching 134 kilometres and built at a cost of more than US$10 billion, the canal is designed for vessels carrying up to 5,000 tons.
Its opening shortens the existing waterway route by more than 560 kilometers, with local logistics operators estimating that transport costs on some routes could fall by 18 to 30 percent.
For Guangxi, the canal addresses a long-standing geographical problem. Despite having more than 1,000 kilometers of coastline, its inland river network previously lacked a direct navigable route to the sea, forcing large volumes of cargo to travel east towards Guangzhou.
The impact could extend far beyond Guangxi. The canal provides a new maritime outlet for cargo from southwest China, while connecting more directly with the Beibu Gulf's shipping network serving Southeast Asia and other global markets.
Businesses from ASEAN economies also expect the new route to reduce logistics costs and speed up the movement of raw materials, components and other goods between China and Southeast Asia.
In this episode of China Xplained, we travel along the newly opened Pinglu Canal to see how China carved a US$10 billion shortcut through mountains and rivers—and why this waterway could reshape trade between southwest China and the rest of the world.
Reporter: Xie Hongzhou
Cameraman: Xu Anrui
Video: Xu Anrui
Poster: Xie Hongzhou
