Scheduled to open for navigation on September 16th, the Pinglu Canal, a key project in China's western land-sea corridor, is expected to inject fresh momentum into economic and trade exchanges between the Hainan Free Trade Port and ASEAN nations.

With its post-customs-closure policies such as zero tariffs and exemption from tariffs on value-added processing, the Hainan Free Trade Port holds distinct advantages in connecting with ASEAN cross-border trade. However, as an island economy, it requires a larger economic hinterland to fully unlock the potential of these policies.

"The Pinglu Canal is reshaping the logistics framework of the western land-sea corridor, ushering in significant development opportunities for the Hainan Free Trade Port," said Pei Guangyi, a council member of the National Economic Geography Research Association and a professor at Hainan Normal University. He noted that the canal's capacity to substantially expand regional cargo flow, combined with the institutional strengths of the Free Trade Port, will generate a synergistic effect of "physical connectivity plus policy dividends."

Pei believes this synergy will further accentuate Hainan's role as an open gateway between China and ASEAN. Goods from the southwest transiting through the canal to Yangpu Port for export to ASEAN will benefit from quicker capital turnover via the port-of-departure tax rebate policy. Conversely, ASEAN cargo processed under bonded status in Yangpu can be routed back through the canal to the southwest inland region, reducing distribution logistics costs.

Currently, the linkage between Yangpu Port and Beibu Gulf Port, the outlet of the Pinglu Canal, is showing strong results. Official data reveals that over ten container shipping routes are now operating between the two ports, with 353,000 TEUs handled in 2025. Collaborative measures, including domestic and foreign trade co-shipping and cross-customs-district bonded fuel supply, have enabled coordinated maritime and customs operations, effectively driving down shipping expenses.

"Once the Pinglu Canal is operational, cargo volumes between the Beibu Gulf region and ASEAN ports will increase markedly, and bonded fuel supply is set to see new growth," stated Li Guanjie, deputy general manager of the bonded business division at Sinopec CSC Marine Fuel Supply Co., Ltd. He added that the company is accelerating efforts to enhance its cross-customs-district bonded fuel supply capabilities between Hainan and Guangxi.

In April of this year, Hainan and Guangxi signed an agreement to establish a logistics corridor spanning Yangpu Port, Beibu Gulf Port, and the Pinglu Canal, jointly aiming to build a frontline platform for opening-up and cooperation with ASEAN.

Industry experts point out that looking ahead, Yangpu Port and Beibu Gulf Port should pursue differentiated development. Beibu Gulf Port will concentrate on river-sea transshipment of bulk goods from the southwest to build scale in basic logistics, while Yangpu Port will leverage the Free Trade Port's advantages to focus on international container consolidation, high-end bonded processing, and ship finance leasing. This complementary approach is expected to forge a new trade landscape oriented toward ASEAN.

In Yangpu, the Tianyou Asphalt Project stands as the largest professional asphalt storage and processing base in Hainan by capacity, offering bonded asphalt storage services. Zhao Bo, assistant general manager of Yangpu Tianyou Asphalt Development Co., Ltd., remarked that improved logistics via the canal will enable the company to enhance Yangpu's distribution functions, importing premium asphalt from Southeast Asia and the Middle East for bonded warehousing and on-demand allocation to efficiently cater to the southwest Chinese market.

With the Pinglu Canal fully connected, ties between Hainan and the southwest hinterland are set to strengthen, opening new avenues for regional economic cooperation between China and ASEAN. A representative from Danzhou Municipal Government indicated that Yangpu will pioneer innovative "Free Trade Port transit" systems, deepen reforms to the "China Yangpu Port" ship registry, and collaborate with provinces along the western land-sea corridor to support the high-quality joint development of the Belt and Road Initiative.