China considers Xianggui Canal to link interior to Beibu Gulf

With the Pinglu Canal nearly complete, China is now considering an even larger project: the Xianggui Canal. This 300km waterway would extend access from central provinces to the Beibu Gulf, forming a 3,200km corridor.

China has almost completed the US$10 billion Pinglu Canal connecting its heartlands to Southeast Asia. Now, it is mulling an even larger waterway, the Xianggui Canal.

The Xianggui Canal would be a 300km (186 mile) waterway that effectively acts as an extension of the new Pinglu Canal, giving cities right at the heart of the Chinese interior direct access to the Gulf of Tonkin, known in China as the Beibu Gulf.

If completed, the Xianggui Canal would enable China to create a vast network of waterways – known as the “Han-Xiang-Gui corridor” – stretching 3,200km from north to south across four provinces: namely, Shaanxi, Hubei, Hunan and Guangxi.

The fate of the project remains uncertain, as constructing the Xianggui Canal would be staggeringly expensive. At an estimated 150 billion yuan (US$21.6 billion), it would be more than twice as expensive as the Pinglu Canal.

But the imminent opening of the new waterway in Guangxi has increased its chances of moving forward, as the “time is ripe” for such a project, said Lu Yi, a professor at the School of Transportation at Changsha University of Science and Technology.

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The vast waterway in China’s southwestern Guangxi region is set to open before the end of 2026, according to state media reports. The mega-project will provide China’s landlocked southwestern provinces with direct access to global shipping lanes, making it faster and cheaper to transport goods between the Chinese interior and neighbouring countries.

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