Pinglu Canal in China Advances to Testing Phase, Set to Boost Trade with ASEAN
China's first river-to-sea canal to ease passage to Asean members enters key test phase
Image: The Star
The Pinglu Canal, a significant infrastructure project in Guangxi, China, has entered its water-testing phase, aiming for an official opening in September. This canal will facilitate direct river-to-sea access for ASEAN countries, enhancing trade and reducing logistics costs.
- 01The Pinglu Canal is 134.2 kilometers long and connects the Xijin reservoir to Qinzhou port in the Beibu Gulf.
- 02Once operational, the canal is expected to shorten shipping distances for goods from southwestern China by over 560 kilometers.
- 03The project is projected to save approximately 5.2 billion yuan (around $768 million USD) annually in logistics costs.
- 04China's trade with ASEAN reached 2.75 trillion yuan in the first four months of the year, marking a 15.7% increase year-on-year.
- 05The canal aims to transform western China's economy from an inward focus to an export-oriented maritime model.
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The Pinglu Canal, a landmark infrastructure project in Guangxi Zhuang autonomous region, China, has entered the water-testing phase as of June 3, 2023, and is expected to officially open in September. This 134.2-kilometer canal will connect the Xijin reservoir to Qinzhou port in the Beibu Gulf, providing a direct river-to-sea route for vessels of the 5,000-metric-ton class. The canal is anticipated to significantly enhance trade with the Association of Southeast Asian Nations (ASEAN) by improving access to China's inland market. With over 96% of the project completed, it is projected to reduce shipping distances for goods from southwestern China by more than 560 kilometers and save around 5.2 billion yuan (approximately $768 million USD) annually in logistics costs. Experts believe that the canal will facilitate a shift towards an export-oriented economy in western China, while also improving cross-border logistics and trade relations with ASEAN member states.
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The Pinglu Canal will significantly enhance trade capabilities for southwestern China, reducing shipping times and costs.
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