(2026.9.1 NANNING) As southwestern China’s Pinglu (平陆）Canal prepares for its official inauguration this month, the new artificial waterway—which flows into the Beibu Gulf （北部湾) —is poised to transform the coastal region into a major river-sea logistics hub. Early projections indicate that cargo throughput in its first year of operation will reach substantial levels, underscoring the waterway’s strategic significance for regional trade and connectivity.
The canal is currently undergoing testing for an AI-powered ship dispatching model designed to intelligently coordinate the convergence of inland-waterway and maritime traffic — a critical step toward ensuring seamless operations in this ambitious infrastructure project.
“Once the Pinglu Canal opens, we will establish a new, convenient, and efficient sea-access route for goods from southwestern China—including Sichuan, Chongqing, Yunnan, Guizhou, and Guangxi,” said Mr Chen Tao, Director of the Container Marketing Center at the Production Operations Department of the Beibu Gulf Port Group. He made the remarks to a visiting delegation of Southeast Asian journalists during their stop at his office in Nanning, the capital of Guangxi, yesterday.
The Beibu Gulf is the body of water off the coast of Guangxi in southwestern China. It is a northern arm of the South China Sea. It is bordered by China’s Guangxi Zhuang Autonomous Region to the north, the Hainan Island to the east, and the northern coastline of Vietnam to the west.
The Port of Beibu Gulf is an integrated port complex in Guangxi consisting of three key ports: Fangchenggang （防城港）, Qinzhou （钦州）, and Beihai （北海）. The Pinglu Canal originates near Nanning and terminates at Qinzhou, positioning the latter now as a key maritime gateway within the Beibu Gulf Port network.
Construction of the 134.2-kilometer Pinglu Canal kicked off in August 2022. Once operational, the waterway will enable cargo from southwestern China to be shipped directly to Beibu Gulf Port, eliminating the need to follow traditional routes via the Pearl River Delta, which are more than 560 km longer. This direct connection is expected to vastly shorten transit times and reduce overall delivery cycles.
“Also, the port’s hinterland will expand markedly. Maritime cargo will be able to travel directly through the canal to inland cities such as Nanning and Guigang, extending the port’s reach deeper into southwestern China and enabling more cost-effective and smooth distribution,” added Mr. Chen.
Mr Chen projected that Beibu Gulf Port would emerge as a key logistics hub, drawing greater cargo volumes and trade activity from inside and outside China, which would drastically reshape its role and reinforce its regional hub status over time.
“The port would be like a stage,’ Mr Chen drew an analogy. “It would provide the stage for logistics participants to gather here and demonstrate their capabilities. Our task is to make that stage larger and more complete.”
“Our preliminary estimate suggests that annual cargo volume through the canal will reach remarkable levels, though the exact figure will depend on market conditions and actual demand.”
In response to a Thai journalist’s question about how the canal would enhance trade with his country, Mr Chen cited the example of Thai durians and other fruits, which could be transported to China more swiftly. At the same time, he noted that products from Guangxi, such as fertilizers, would also be exported to Thailand more expeditiously.
Mr Chen Fuqiang, deputy general manager, department of technology and information, Beibu Gulf Port Group, told the same group of journalists that once the inland waterway and maritime transport system are connected when the canal opens, the vessels using it will feel immense stress from the two-way traffic.
He mentioned a water-transportation large language model currently under trial is the solution. It is designed to help ship dispatchers coordinate navigation and transports more holistically across both inland waterway and the sea.
“By leveraging artificial intelligence, we will continue to provide robust support for river-sea intermodal transport along this Western Land-Sea New Corridor,” Mr Chen added.
The model was developed about a year ago. Over the past year, Mr Chen and his team have concentrated on just one aspect —vessel dispatching. He expected once the canal becomes operational, a host of new challenges will pop up.
Earlier reports from Singapore media noted that the Pinglu Canal could shorten the shipping distance between southwestern China and Singapore by about 740 kms. However, they predicted the canal would not displace Singapore entirely as a transshipment hub. Rather, it would reconfigure the upstream routes within the broader Southeast Asian maritime network or rather the South China Sea region, altering regional logistics dynamics without diminishing Singapore’s strategic role.
In July, Hong Kong-based shipping and logistics leader SITC, which specializes in the intra-Asian regional market, met with Beibu Gulf Port Group in Nanning and agreed to expand cooperation with it in advance of the canal’s opening.
However, according to analysts in Singapore, the real threat from Pinglu Canal is not to Singapore’s global transshipment position which is unshakable, but to its regional short-sea trade as Beibu Gulf rises.
