China opens Pinglu Canal to Gulf of Tonkin

China opened the 134-kilometre Pinglu Canal on Wednesday, creating a route from Nanning in Guangxi to the Gulf of Tonkin that state media said will give landlocked areas more direct access to the sea.

State news agency Xinhua said goods from southwestern China previously had to be transported to Guangzhou to reach the sea. It said the new canal would cut that journey by more than 560 kilometres, reduce transport costs by 18 to 30 percent and generate annual savings of more than five billion yuan, or $745 million, in the sector.

The Gulf of Tonkin is flanked by China and Vietnam. Xinhua said the canal would provide the shortest and most economical route to Southeast Asia and boost economic development.

State broadcaster CCTV showed the first barge passing through the canal and aerial footage of ships on the waterway.

The route is expected to be important for rural parts of Sichuan, Chongqing and Yunnan, among other areas. Xinhua said coal, ore, cereals, chemicals, agricultural produce and other materials would be able to reach foreign markets more easily.

Most construction involved widening, deepening and modifying existing waterways, while a small section was excavated, Xinhua said. The project began in August 2022 and cost 72.7 billion yuan.