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Markets

China opens Pinglu Canal linking inland regions to sea

Published 19 September 2026

China officially opened the Pinglu Canal on September 16, 2026, a 134.2-kilometer waterway designed to provide its southwestern interior with a direct route to the sea and strengthen trade with Southeast Asia. The canal connects the Xijiang River system with the Beibu Gulf, also known as the Gulf of Tonkin, creating a new maritime gateway for landlocked provinces like Yunnan and Guizhou. The project, which cost 72.7 billion yuan (approximately $10.8 billion), was completed after four years of construction. It is the first modern river-to-sea canal built in China since 1949. The waterway is designed to accommodate vessels of up to 5,000 tonnes, a significant increase from the previous 50-tonne capacity on the lower Qinjiang River. Chinese authorities state the canal cuts the inland waterway journey to the sea by more than 560 kilometers, bypassing the traditional route through Guangzhou. Officials estimate this new route could reduce overall logistics costs by 18 to 30 percent and save more than 5 billion yuan annually in transportation expenses.

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