China will open the new Pinglu Canal on September 16, 2026. The 134.2-kilometer-long waterway connects the Xijiang river system with the Gulf of Beibu, creating a shorter route from western China to the sea. Construction has been underway since August 2022. The investment amounts to approximately 72.7 billion yuan, which equates to roughly 10.4 to 10.8 billion US dollars, depending on the exchange rate. The canal begins at Hengzhou near Nanning and runs via Qinzhou to the Gulf of Beibu. It is designed for vessels with a carrying capacity of up to 5,000 tonnes. For logistics, the route shortening is particularly important. Goods from southwestern China previously had to take a detour via Guangzhou and the Pearl River Delta. Via the Pinglu Canal, the route to the sea is expected to be reduced by approximately 560 kilometers. Transports from Guangxi as well as from the inland regions around Chongqing, Chengdu, and Guiyang can benefit from this, among others. At the southern end of the canal lies Qinzhou, an important part of the Beibu Gulf Port harbor complex. From there, sea connections exist to major markets in Southeast Asia, including Vietnam, Thailand, Malaysia, Singapore, Indonesia, and the Philippines. Chinese authorities expect the canal to reduce logistics costs by 18 to 30 percent. This should result in annual savings of more than five billion yuan in transport costs. Whether these figures will actually be achieved in practice remains to be seen. Decisive factors include not only the route distance but also lock transit times, schedules, capacity utilization, pre- and post-transport operations, and cargo handling at the port. The canal features three major lock systems at Madao, Qishi, and Qingnian. Together, they overcome an elevation difference of approximately 65 meters. The planned transport capacity is up to 89 million tonnes per year. At launch, China is also offering a price incentive. Commercial vessels are to pay no fees for lock passage until the end of 2026. From January 2027 onwards, an initial tariff of one yuan per registered gross tonne per lock transit is planned. This creates new competition for ports in the Pearl River Delta. Cargo from western and southwestern China will no longer necessarily have to route through Guangzhou, Shenzhen, or Hong Kong. This does not mean the Pinglu Canal will suddenly replace these major container ports. However, it provides shippers and freight forwarders with an additional route via Qinzhou and the Gulf of Beibu. This could be particularly attractive for transports to Southeast Asia.