As a pivotal project in China's western land-sea trade corridor, the Pinglu Canal is set to officially open for navigation on September 16th. Experts suggest this development could inject fresh momentum into economic exchanges between the Hainan Free Trade Port and ASEAN member states.
Following the implementation of island-wide customs closure, the Hainan Free Trade Port boasts preferential policies such as zero tariffs and tariff exemptions for value-added processing, giving it a distinct edge in connecting with ASEAN cross-border trade. However, as an island economy, the port requires a more substantial economic hinterland to fully unlock the potential of these policy advantages.
"The Pinglu Canal reshapes the logistics framework of the western land-sea corridor, presenting a major opportunity for the Hainan Free Trade Port," said Pei Guangyi, a professor at Hainan Normal University and council member of the National Economic Geography Research Association. He explained that the canal's significant expansion of regional cargo flow, combined with Hainan's institutional strengths, creates a synergistic effect bridging physical infrastructure with policy incentives.
According to Pei, this synergy will further elevate Hainan's role as an open hub between China and ASEAN: goods from the southwest can transit via the canal to Yangpu Port for export to ASEAN, leveraging departure-port tax rebate policies to accelerate capital turnover for businesses. Conversely, ASEAN products can undergo bonded processing at Yangpu before being distributed inland to the southwest through the canal, reducing logistics costs across the supply chain.
At present, collaboration between Yangpu Port and Beibu Gulf Port, which serves as the canal's outlet to the sea, has already yielded tangible results. Official data reveals that over ten container shipping routes now operate between the two ports, with 353,000 TEUs moved in 2025. Joint initiatives, including co-shipment of domestic and foreign trade cargo and cross-customs-region direct bonded fuel supply, have enabled coordinated maritime and customs operations, effectively lowering shipping expenses.
"Once the canal becomes operational, freight volumes between the Beibu Gulf area and ASEAN ports are expected to climb notably, potentially driving fresh growth in bonded fuel supply volumes," noted Li Guanjie, deputy general manager of the bonded fuel division at Sinopec China Shipping Marine Fuel Supply Co., Ltd. He added that the company is accelerating efforts to strengthen cross-customs-region bonded fuel delivery capabilities between Hainan and Guangxi.
In April of this year, Hainan and Guangxi signed an agreement to establish a logistics corridor linking Yangpu Port, Beibu Gulf Port, and the Pinglu Canal, jointly positioning themselves as a leading frontier for opening-up and cooperation with ASEAN. Industry insiders emphasize that Yangpu and Beibu Gulf ports must accelerate differentiated development moving forward. Beibu Gulf Port should focus on facilitating river-to-sea transshipment of bulk cargo from the southwest to build a robust logistics base, while Yangpu Port can leverage free trade port advantages to concentrate on modern services such as international container consolidation, high-end bonded processing, and ship financing leasing—together forming a complementary trade framework oriented toward ASEAN.
In Yangpu, the Tianyou Asphalt Project stands as Hainan's largest professional asphalt storage and processing facility, offering bonded warehousing services. Zhao Bo, assistant general manager of Yangpu Tianyou Asphalt Development Co., Ltd., explained that the canal's logistical convenience enables the company to enhance Yangpu's distribution functions—importing premium asphalt from Southeast Asia and the Middle East for bonded storage and on-demand dispatch, efficiently serving the southwest China market.
With the Pinglu Canal connecting the region, Hainan's ties to China's southwestern hinterland are poised to deepen, opening new avenues for China-ASEAN regional economic cooperation. Zhang Huawei, executive vice mayor of Danzhou City, stated that Yangpu will pioneer innovative "free trade port transit" systems, advance reforms at the "China Yangpu Port" ship registry, and join provinces along the western land-sea corridor in supporting high-quality Belt and Road cooperation.