The Binh Luc Canal is a massive infrastructure project in China’s Guangxi province. With a length of 135 km, the canal is expected to boost China’s trade with the ASEAN region. Construction on the Binh Luc Canal began in Guangxi in August 2022, marking the first new canal project in China since the Grand Canal, built around 700 years ago.
According to the SCMP, the Binh Luc Canal starts at the Xi Xin reservoir in Hoanh Chau city and ends at the lower reaches of the Khâm River in Linh Son county, Khâm Chau city, where it empties into the Gulf of Tonkin. The project carries a price tag of 72.7 billion CNY (over $10 billion) and is expected to be completed and operational by 2026.
A construction site of the Binh Luc Canal. Image: Xinhua
Gao Zendong, a veteran consultant for Chinese companies investing in Southeast Asian countries, shared his thoughts: “The practical value of the Binh Luc Canal project is highly anticipated.” He believes that the canal will enhance the connection between the Chinese and ASEAN markets while reducing transportation costs for goods traveling in both directions.
Huang Yonghui, a senior advisor to the Guangxi Reform and Development Commission, emphasized the need for a denser logistics network to ensure smoother supply chains and economic exchanges. “The current international situation calls for closer cooperation between Chinese businesses and ASEAN. Ports will have greater potential in the future,” Huang added.
The Binh Luc Canal is expected to boost China’s trade with ASEAN. Image: SCMP
An environmental impact assessment report predicts that the Binh Luc Canal will be able to transport 108 million tons of cargo by 2035 and 130 million tons by 2050. The canal is designed to mainly carry coal, cement, minerals, ore, building materials, containers, and grain.
Upon completion, the canal is expected to significantly reduce the travel time for container ships carrying goods from Nanning, the capital of Guangxi, to Southeast Asian countries. Currently, it takes container ships traveling from China to ASEAN countries between 7 and 10 days.
Additionally, once completed, the Binh Luc Canal will be the world’s largest canal connecting a river to the sea, with a total excavation and embankment volume of over 339 million cubic meters.
What Makes the $10 Billion Canal Special?
Simulation of the Binh Luc Canal’s water lock system. Image: SCMP
Since 2022, China has mobilized thousands of workers and engineers to accelerate the construction of the Binh Luc Canal, aiming to meet the projected completion date of 2026. Experts predict that once operational, the canal will be able to accommodate cargo ships with a capacity of up to 5,000 tons, while saving an estimated 5.2 billion CNY (nearly $720 million) in annual transportation costs.
The canal will feature three water-saving ship locks to address the 65-meter elevation difference between the reservoir at the canal’s head and sea level at its mouth. Notably, these locks are designed to save 60% of the water that traditional locks would use. Additionally, according to official announcements, the concrete used in the locks is guaranteed to last over 100 years and resist seawater erosion.
Simulation of the Binh Luc Canal under construction in Guangxi. Image: CGTN
Chinese experts have also conducted various physical and mathematical simulations to predict how seawater will affect drinking water and irrigation sources once the canal is operational.
The Binh Luc Canal project underscores China’s ambition to enhance trade with the ASEAN region, its largest trading partner, as the world’s second-largest economy competes for influence with the US.
According to experts, the Binh Luc Canal project highlights China’s shift in focus towards strengthening maritime connectivity for its Belt and Road Initiative.
References: SCMP, Xinhua, Nikkei, Baidu
