After four years of construction, China opened the Pinglu Canal on Sept. 16. Built at a cost of 72.7 billion yuan ($10.83 billion), the canal runs from Nanning, capital city of Guangxi, on the Yongjiang River to the Beibu Gulf, just to the east of the Vietnamese border. It is the closest maritime outlet for much of southwest China. The canal will not just promote trade between China and the nations of the Association of South East Asian Nations (ASEAN), but will also promote economic and industrial integration between China and this area, its largest trade partner. 

This is the first ship canal China has constructed since 1949. The 134-km canal can carry ships up to 5,000 tons while cutting cargo routes by 560 kilometers. The canal is the key project of the New International Land-Sea Trade Corridor, connecting China’s inland regions with ASEAN and other global markets.

Experts cited by Global Times said with the new river-sea corridor now in operation, logistics, trade and industrial ties between the two sides will deepen further, injecting fresh momentum into China-ASEAN economic and trade cooperation.  It is expected to reduce overall logistics costs by 18 to 30 percent, and save more than 5 billion yuan in transportation costs each year.