24-7-2023 (BEIJING) Chinese authorities have a penchant for building roads and bridges from bygone eras, as connectivity facilitates the movement of people, goods and prosperity. But only a few can afford to construct canals that demand vast manpower and mastery of technology.
More than 2,200 years ago during the Qin dynasty, China’s first emperor erected the 36.4km Lingqu Canal to transport soldiers for conquering southern tribes and expanding imperial territory.
Qin Shi Huang’s mega project linked the Xiang River in Hunan province – a tributary of the 6,300km Yangtze River – with the Li River in Guangxi Zhuang Autonomous Region in southern China.
Construction of what would become the 1,800km Grand Canal – a UNESCO World Heritage Site connecting eastern China’s business hub Hangzhou with Beijing – was completed during the Yuan dynasty over 700 years ago.
But until August 2022, when work started on the Pinglu Canal, no new canals had been built.
The 135km, 72.7 billion yuan ($10.1 billion) Pinglu project aims not only to develop Guangxi border region, but also highlights China’s state-of-the-art construction and strategic thinking amid shifting geopolitics.
“This canal’s value merits anticipation,” said veteran consultant Gao Zhendong, who assists Chinese firms expanding into Southeast Asia. He added it would “enhance China-ASEAN connectivity like capillaries binding circulatory systems.”
Gao foresees robust two-way cargo flows as “the waterway’s cost savings will be substantial.”
The canal, part of China’s westward land-sea corridor to the Beibu Gulf and South China Sea, should carry 108 million tonnes of cargo by 2035 and 130 million tonnes by 2050, per its environmental impact report.
It would enable container ships and bulk carriers to sail from Nanning to Vietnam, Malaysia, Singapore, Indonesia and beyond in weeks.
The project also represents Beijing’s hopes of making ASEAN, with 600 million people already China’s largest trading partner, key to countering US influence.
Beijing has deepened ASEAN ties via annual summits, Belt and Road, and the Regional Comprehensive Economic Partnership trade pact.
Meanwhile, Washington attempts to sway some Southeast Asian nations through its Indo-Pacific Economic Framework launched in 2022.
In recent ASEAN talks, Chinese Foreign Minister Wang Yi called for comprehensive cooperation to build a shared destiny community.
Upgrading their free trade agreement will boost flows of people and goods. Infrastructure connectivity is a priority, as shown by Belt and Road and Beijing-based Asia Infrastructure Investment Bank.
Canal consultant Huang Yonghui said further logistics networks are needed to enhance bilateral supply chains and exchanges.
The Pinglu Canal would improve Guangxi’s comprehensive links to Southeast Asian markets via roads, rail, shipping and flights.
“With severe global tensions, Chinese enterprises should cooperate more closely with ASEAN,” Huang said. “The ports have excellent prospects.”
China is not alone in using canals for strategy, with Egypt’s Suez Canal and Panama Canal shaping geopolitics over the years.
Thailand’s proposed Kra Canal would also offer an alternative to the Malacca Strait. The idea has been discussed since the 2000s, but China’s Pinglu Canal started quickly.
Thousands of workers toil daily to meet the 2026 completion target. Thousands of excavators push ahead.
Currently, Western Chinese goods travel to Guangzhou and Hong Kong via lengthy routes. But after the canal opens, the voyage will be shortened by over 560km.
Vessels up to 5,000 deadweight tonnes could be accommodated, potentially saving over 5.2 billion yuan annually in transport costs.
Once finished, it would be the world’s biggest river-sea canal at 339 million cubic metres excavated – three times the Three Gorges Dam.
“Countries like Netherlands have similar projects, but not on this scale,” said canal official Pan Jian.
To address water stresses amid climate change, the canal will boast the world’s three largest inland water-saving ship locks, handling a 65m drop between Xijin Reservoir and the sea.
The Madao Junction lock alone covers 185,000 sq m and requires 3.5 million cubic metres of concrete. Its design could save 60% of water versus traditional locks.
Pan said much work can only be figured out along the way, with no model to follow. New patents and standards are being formulated.
Scientists are also simulating how seawater could impact local drinking and irrigation once operational.
Some expect the canal to boost foreign trade, but others see a potential white elephant.
Beibu Gulf ports saw cargo grow 3.7% year-on-year in 2022 to 370 million tonnes, ranking 10th nationally. Container volume grew 16.8% to 7.02 million TEUs, ranking 9th.
The ports connect all major ASEAN ports via 75 shipping routes.
Western provinces may form new ASEAN-focused industrial belts in future, said think tank executive Peng Peng.
But supply chain and environmental worries persist, said Raymond Xie, in Guangxi’s mining and logistics sectors.
“There’s insufficient cargo for Guangxi’s biggest port. Plus, the canal’s upper reaches and water resources are limited,” Xie said.
The project’s environmental impact assessment warned it will affect drinking water sources, farmland, forests and mangroves.
It said the canal would mainly ship coal, minerals, grains and construction materials.
Several Chinese green groups have questioned the ecological impact. The China Biodiversity Conservation and Green Development Foundation wrote to Guangxi’s ecology department in June 2022, saying the project’s harm to biodiversity is indisputable.
It also threatens freshwater resources, increases river shrinkage and siltation risks, and exacerbates flooding.
Guangxi’s environment watchdog replied it would protect ecology without elaborating.
Environmentalist Aster Lee said economic rather than environmental factors are driving a new wave of canal projects pursued by local governments seeking GDP growth.
“The canal ends at a coastal estuary home to mangrove wetlands,” Lee said. “Dredging for shipping channels will inevitably impact mangroves, which the authorities should consider.”
