As a cornerstone project of China's western land-sea trade corridor, the Pinglu Canal is scheduled to open for navigation on September 16th. Experts believe this waterway could inject fresh momentum into economic and trade exchanges between the Hainan Free Trade Port and ASEAN nations, according to a report from the Hainan Provincial Federation of Industry and Commerce.

Following the full implementation of independent customs operations, the Hainan Free Trade Port offers policies such as zero tariffs and tariff exemptions for value-added processing, giving it a distinct edge in engaging with ASEAN cross-border trade. However, as an island economy, the free trade port requires a more expansive economic hinterland to fully unlock the potential of its policy framework.

"The Pinglu Canal is set to reshape the logistics landscape of the western land-sea corridor, presenting a major growth opportunity 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, in a recent interview. He noted that the canal will substantially expand regional cargo volumes, and when paired with the institutional strengths of the Hainan Free Trade Port, it will create a combined effect of "physical connectivity plus policy dividends."

Pei added that this dynamic would further elevate Hainan's role as an open gateway between China and ASEAN: goods from the southwest routed through the canal to Yangpu Port for export to ASEAN could benefit from port-of-departure tax rebates, accelerating capital turnover for businesses. Conversely, ASEAN-origin goods processed under bonded conditions at Yangpu could be shipped back through the canal to the southwestern hinterland, lowering distribution and logistics expenses.

Currently, collaboration between Yangpu Port and Beibu Gulf Port, the canal's estuary, is already yielding results. Official data shows that the two ports have launched over a dozen container shipping routes, handling 353,000 TEUs in 2025. Joint initiatives, including co-shipment of domestic and foreign trade cargo and cross-customs-area direct supply of bonded bunker fuel, have enabled coordinated maritime and customs operations, effectively cutting shipping costs.

"Once the Pinglu Canal is operational, cargo traffic between the Beibu Gulf region and ASEAN ports will climb noticeably, and bonded bunker fuel supply volumes are likely to hit new highs," said Li Guanjie, deputy general manager of the bonded business unit at Sinopec China Shipping Marine Fuel Supply Co., Ltd. He confirmed that the company is accelerating its capacity to support cross-customs-area direct delivery of bonded fuel between Hainan and Guangxi.

In April of this year, Hainan and Guangxi signed an agreement to build a logistics corridor linking Yangpu Port, Beibu Gulf Port, and the Pinglu Canal, with a shared goal of establishing a leading frontier for opening-up and cooperation with ASEAN. Industry insiders suggest that, looking ahead, Yangpu Port and Beibu Gulf Port should pursue differentiated development strategies. Beibu Gulf Port should focus on the river-to-sea transfer of bulk cargo from the southwest to expand its core logistics scale, while Yangpu Port, leveraging its free trade port advantages, should concentrate on modern services such as international container consolidation, high-end bonded processing, and ship financing leasing. Together, the two ports can form a complementary trade framework aimed at ASEAN.

In Yangpu, the Tianyou Asphalt Project stands as Hainan's largest professional asphalt storage and processing base, operating a bonded asphalt warehousing business. Zhao Bo, assistant general manager of Yangpu Tianyou Asphalt Development Co., Ltd., highlighted that the canal brings logistics convenience, "enabling the company to bolster Yangpu's distribution functions by importing premium asphalt from Southeast Asia and the Middle East for bonded storage and on-demand allocation, efficiently serving the southwestern Chinese market."

With the Pinglu Canal fully connected, ties between Hainan and the southwestern hinterland are expected to tighten, opening new avenues for China-ASEAN regional economic cooperation. A representative from Danzhou Municipal Government stated that Yangpu will pioneer innovative "free trade port transit" systems, deepen reforms to the "China Yangpu Port" ship registry, and work alongside provinces along the western land-sea corridor to support high-quality Belt and Road cooperation.