The opening of the Pinglu Canal has created a new coal transport corridor for southwestern China, handling both domestic and imported coal.

On September 16, the first day of navigation, two CHN Energy coal vessels became the first upbound ships to transit the canal, opening a new sea-to-river coal supply route.

On September 17, China Huadian's Guigang power plant received its first batch of 8,000 tonnes of imported thermal coal via the canal.

The canal shifts coal transport in the region from a detour through the Pearl River Delta to a direct route to the Beibu Gulf, cutting transit times and costs while adding a sea-to-river supply channel.

The traditional Xijiang route runs from Guangzhou port westward to Nanning. The Pinglu Canal shortens the Beibu Gulf-Qinzhou port-Nanning route to about 204 km, a reduction of roughly 623 km.

Waterway freight costs are about 30% lower than road or rail, and transit time falls to 5-7 days from 12-15 days. Including other fees, overall logistics costs for southwest cargo moving to sea drop 18-30%, according to CCTV.

Hou Jiaquan, head of coal procurement at China Energy Engineering's Chongzuo power plant, said preliminary estimates show the company could save several million yuan annually in logistics costs by shipping coal via the canal.

CHN Energy said the water route is shorter than the previous rail link from Qinzhou port to its Nanning plant, reducing costs and boosting supply capacity during peak periods.

For logistics-sensitive companies, the canal offers direct cost savings and strengthens raw material security and market competitiveness.

China Huadian's Guigang plant sources imported thermal coal mainly from Australia and Indonesia. It previously relied on the Xijiang waterway and rail, a multi-leg, long-cycle and costly route vulnerable to floods, low water levels and extreme weather.

With the canal open, imported coal can move from Qinzhou port via the Pinglu Canal and Yujiang River to Guigang, improving its road-rail-water intermodal system. Chen Bin, party secretary and director of the plant, said the route is nearly 280 km shorter than the traditional Pearl River Delta path, significantly improving transport efficiency and supply chain resilience.

The new sea-to-river channel allows imported coal and north-to-south coal to unload at Beibu Gulf ports such as Qinzhou and enter Guangxi's inland waterways directly to Nanning, Guigang and other upper-middle Xijiang areas without detouring through Guangzhou. More coal is expected to be transshipped via the canal in the months ahead.

On the opening day, the Nanning-Vietnam Can Tho foreign trade route and the Nanning-Hainan Yangpu domestic route began two-way service. Fourteen vessels loaded with sugar, building materials, minerals and steel transited the lock, while 16 ships carrying coal, iron ore, bauxite, fertilizer and high-calcium stone entered the Xijiang basin.