In a significant move to bolster its trade infrastructure, China has commenced the construction of the Pinglu Canal in Guangxi region, measuring 134 kilometers in length.

The canal will connect the Yu River in the interior of China to the Tonkin Gulf, situated in the strategically vital and politically sensitive South China Sea.

This development is part of China's broader initiative known as the “Belt and Road,” aimed at enhancing connectivity between its inland areas and global markets.

Construction of the canal officially began in 2023, following years of meticulous planning.

Scheduled for completion by December 2026, the estimated cost of the project stands at approximately €9.3 billion.

The Pinglu Canal is poised to play a crucial role in the transportation of goods, significantly reducing the overland travel distance by up to 560 kilometers.

As the first major canal to be built in China since the establishment of the People's Republic, the Pinglu Canal is designed to accommodate vessels with a capacity of up to 5,000 tons.

Ships measuring 90 meters in length, 15.8 meters in width, and with a draft of five meters will be able to navigate through the canal.

It features two locks with dimensions of 300 meters in length and 34 meters in width, capable of overcoming elevation differences of up to 65 meters, optimized for quick and efficient transit.

Only 6.5 kilometers of the canal will consist of newly constructed waterways; the majority comprises adapted river sections.

The substantial earth-moving efforts for the project have already involved the relocation of over 50 million cubic meters of material, with total excavation anticipated to exceed 339 million cubic meters—significantly more than the volume of the renowned Three Gorges Dam.

Advanced technology is employed throughout the construction, including a special erosion-resistant concrete designed to last more than 100 years to minimize maintenance costs.

If the project proceeds as scheduled, the timeline from the initial planning phase to operational status will be seven years, with just three years of actual construction.

Environmental concerns have arisen related to the large volumes of earth being shifted, especially near rivers and mangrove ecosystems that could be disrupted by the construction activities.

Although vessels of 5,000 tons are considerably smaller than those traversing the Panama or Suez Canals, the Pinglu Canal is strategically designed to facilitate the movement of goods from inland manufacturing hubs to maritime ports, from where products can be exported globally.

This initiative aligns with the ambitions of Chinese President Xi Jinping’s “Belt and Road” strategy, intended to bolster connections between China and diverse international markets, particularly in Asia, Africa, and Europe.

Expectations surrounding the canal’s completion include reduced transportation costs, as waterborne transport is significantly more economical compared to road, rail, or air.

Anticipated annual savings are projected at around $725 million, alongside alleviation of traffic congestions in China's industrial regions.

Beyond transportation improvements, the canal is expected to enhance water resource management for irrigation purposes and provide flood protection to neighboring areas.

The Pinglu Canal project is emblematic of China's extensive geopolitical and trade strategies, as additional international corridors are planned, including one through the Kra Isthmus in Thailand aimed at circumventing the crucial Strait of Malacca.

Moreover, several smaller inland canals are also under consideration, such as the Zhejiang–Jiangxi–Guangdong, Jinghan, and Xianggui canals, which aspire to connect domestic regions and improve trade while reducing the pollution associated with road transport.

Collectively, these initiatives reflect China’s ambitious strategy to strengthen trade both within its borders and internationally, thereby consolidating its position in the global market and political landscape.