China opens first river-to-sea canal since 1949 to boost inland trade

China's first river-to-sea canal built since the founding of the People's Republic in 1949 has opened, with its operator predicting the waterway could drive inland economic growth comparable to the transformation the Yangtze River brought to Shanghai.

The Pinglu Canal began operations on Wednesday, creating a 134.2-kilometre link between a major tributary of the Pearl River in southern Guangxi Zhuang autonomous region and the Beibu Gulf, the Chinese name for the Gulf of Tonkin. The waterway measures 83.4 miles in length.

Shorter Routes for Landlocked Provinces

The canal is designed to serve as a short cut for cargo moving between western China and the Association of Southeast Asian Nations. It promises shorter routes to the sea and lower transport costs, potentially reshaping the fortunes of landlocked regions in the country's southwestern interior.

The operator stated that the project was prioritised to ease severe congestion at traditional logistics hubs. Additional projects are already under way to maximise the waterway's economic potential, according to the operator.

The new canal is expected to boost trade links with Southeast Asia, opening a more direct maritime connection for China's inland western provinces that have historically depended on longer, more congested routes to reach international markets.

Source: South China Morning Post