China’s US$10.8b trade short cut: new Pinglu Canal prepares to supercharge Asean shipments

Aptly dubbed the Pinglu 001, the first command and management vessel for the Pinglu Canal was delivered on Monday and will soon enter service as China prepares to open the strategic waterway designed to support surging trade with Southeast Asia.

The delivery marks one of the final steps before the 72.7 billion yuan (US$10.8 billion) megaproject is expected to officially open later this month after years in the making. The canal is a signature project for the world’s second-largest economy as it seeks to accelerate freight flow and slash transit costs with its largest trading partner, the Association of Southeast Asian Nations (Asean).

A fleet of command vessels will patrol the 134km (83-mile) canal to oversee navigation and handle emergency responses. The waterway links Nanning, capital of the Guangxi Zhuang autonomous region, to the Gulf of Tonkin, also known as the Beibu Gulf, between China and Vietnam.

The command ships are capable of operating in both coastal and inland waters and can carry up to 50 operational personnel. Their smart navigation systems will undergo testing at shore-based facilities in Qinzhou, Guangxi, where the canal empties into the sea, according to the state-run People’s Daily.

The canal’s debut is expected to align with the 23rd China-Asean Expo, scheduled for September 17 to 21 in Nanning.