Five‑pronged synergy! This logistics niche is entering its “golden age.”

China’s large-scale inland waterway infrastructure projects are driving profound transformations in economic geography. Powered by the synergistic momentum of five key drivers—“integrated rail‑water‑road logistics to cut costs and boost efficiency,” “green and low‑carbon transformation,” “regional economic integration,” “industrial ecosystem restructuring,” and “accelerated dual circulation”—these initiatives have not only become a critical engine for stabilizing growth but have also ushered in an unprecedented “golden age” for the inland economy.

China’s inland waterway network is underpinned by the overarching pattern of “the Yangtze River flowing eastward and highland waterways radiating outward,” with exorheic and endorheic systems complementing and coexisting, and distinct regional variations across the east, west, south, and north. This configuration provides uniquely favorable conditions for water transport, energy development, and ecological conservation. By the end of 2023, the total navigable length of China’s inland waterways reached 128,200 kilometers, ranking first worldwide; among these, 67,800 kilometers (52.9%) were classified as navigable routes, and 15,400 kilometers (12.0%) belonged to Grade III or higher. The total number of operational berths at inland ports stood at 16,433, predominantly concentrated along the main stems and tributaries of key river systems such as the Yangtze and the Pearl River.

China’s eastern waterway network, anchored by major rivers such as the Yangtze and the Pearl, benefits from excellent natural navigability and a high river‑network density, providing robust support for bulk‑cargo transport and the vigorous development of river‑front industrial belts. In contrast, the western regions, constrained by topography and climate, feature numerous rapids and hazardous shoals, limiting navigation. Northern waterways like the Yellow River and the Haihe River suffer from high sediment loads and winter ice cover, resulting in poor natural navigability and necessitating reliance on artificial channelization and dredging. Meanwhile, the southern waterway systems—particularly the Yangtze and the Pearl—exhibit stable flow volumes and a well‑developed tributary network, enabling an efficient transport framework characterized by direct trunk‑tributary connectivity and integrated river‑sea shipping.

As a millennial waterway, the Grand Canal has long served as a vital artery for grain transport between northern and southern China, nurturing numerous historic cities along its banks. Although the freight‑carrying capacity of northern waterways has gradually declined, from Jining in Shandong southward, modern technologies and ecological restoration have breathed new life into the canal system. For instance, the Northern Jiangsu Canal has adopted the “Chuanxuntong” app to enable electronic declarations and toll payments, streamlining lock‑passage procedures and boosting efficiency. New anchorages, berths, and eco‑friendly revetments have been constructed, improving navigational conditions and driving annual throughput to over 300 million tons for ten consecutive years. Integrated treatment of ship‑borne water pollutants has been implemented, rigorously controlling wastewater discharge and restoring the canal’s ecological balance. Furthermore, green initiatives such as shore power facilities and smart parcel lockers have been promoted, helping to reduce ships’ carbon emissions.

After years of comprehensive improvement, the Grand Canal has seen its waterways widened, its channels deepened through dredging, and its coastal ports upgraded. The Northern Jiangsu section of the canal, following multiple rounds of renovation, has evolved from seasonal navigation into one of China’s highest‑grade, most fully equipped artificial waterways. In 2022, the Beijing–Hangzhou Grand Canal achieved full‑line water connectivity for the first time in a century, and the Ministry of Water Resources plans to replenish water annually to ensure stable navigational water supplies.

Thanks to these measures, in 2023 the Beijing–Hangzhou Grand Canal’s total freight volume exceeded 800 million tons, maintaining its position as the world’s third-largest inland waterway in terms of cargo throughput. The northern Jiangsu section alone accounted for 350 million tons, with annual freight volumes surpassing 300 million tons for eight consecutive years. In 2024, the northern Jiangsu Canal handled 327 million tons of cargo, with coal shipments accounting for 32% of the total; container throughput rose 25% year on year to 732,000 TEUs. Compared with road transport, the northern Jiangsu section of the canal saves more than RMB 24 billion in costs annually.

Having recognized the economic value of waterborne transport, Jining, Shandong Province, has intensified its efforts to manage and develop the Grand Canal. In 2024, Jining Port handled over 95 million tons of cargo and more than 400,000 TEUs, firmly maintaining its position as the leading inland port in Shandong Province. The city operates 64 inland shipping routes and 26 container routes, with a logistics network that spans 152 cities nationwide and international services reaching 16 countries.

Through航道 upgrades, port capacity expansion, and diversified revenue models, the Grand Canal is transforming into a “golden waterway” that serves as both a logistics hub and an economic engine, injecting strong momentum into economic revitalization.

On March 24, 2025, the Ministry of Transport and the National Development and Reform Commission jointly issued the Action Plan for Promoting the Implementation of the Inland Waterway Connectivity Project, announcing that by 2030 a modern inland waterway network spanning east–west and radiating north–south will be completed. Today, China’s inland waterways are experiencing an unprecedented “new momentum,” undergoing a transformation from a “single arterial route” to a “three-dimensional network” and from “north–south connectivity” to “east–west integration.” This transformation not only carries the historic mission of reducing logistics costs but also assumes the critical task of reshaping economic geography and fostering coordinated regional development.

Although China’s inland waterway freight volume has remained the world’s largest for many consecutive years—reaching 6.139 billion tons in 2023, up 10.5%, accounting for 11.21% of the country’s total commercial freight volume—the nation’s natural waterways still face numerous challenges. In the north, seasonal navigation disruptions and high sediment loads constrain shipping potential, necessitating urgent improvements through ecological restoration and channel upgrades. Meanwhile, developing natural waterways in the west is highly challenging, requiring the integration of hydropower development with artificial canals to achieve inter‑basin connectivity.

In the eastern region of China, the natural waterway network boasts strong navigational capacity, providing access to the Yellow Sea, Bohai Sea, East China Sea, South China Sea, and other coastal areas. Moreover, it can extend southward along the nearshore waters, connecting to global shipping routes. Consequently, a key challenge is how to leverage this natural waterway system to establish direct links among major river systems—such as the Yellow River, Huai River, Yangtze River, and Pearl River—thereby integrating inland transport with waterborne networks and linking the interior with major rivers and the sea, much like the Grand Canal, which directly connects the Yellow River, Huai River, and Yangtze River. Such an approach would effectively address issues related to transportation distance and freight costs.

Local governments, tailored to their specific circumstances, have successively unveiled new canal projects aimed at shifting freight transport from an east–west axis to a north–south one. Central and western provinces—such as Anhui, Hubei, Hunan, Henan, Jiangxi, and Guangxi—have emerged as the main drivers of this initiative. Planned projects include the Henan Canal linking rivers to the sea, the Jianghuai Canal in Anhui, the Jinghan Canal in Hubei, the Xianggui Canal in Hunan, and the Zhejiang–Jiangxi–Guangdong Canal in Jiangxi. The total investment exceeds 850 billion yuan, roughly equivalent to 6.7 times the capital required for the Hong Kong–Zhuhai–Macao Bridge. These new canals seek to integrate major river systems—including the Yangtze, Pearl, and Huai Rivers—thereby establishing an inland waterway network that spans east–west and radiates north–south. For instance, the Zhejiang–Jiangxi–Guangdong Canal would connect the Yangtze Delta with the Pearl River Delta, while the Xianggui Canal would link the Yangtze and Pearl Rivers.

The Pinglu Canal, located within the Guangxi Zhuang Autonomous Region, is the first canal project in the People’s Republic of China to connect inland waterways with the sea since the country’s founding, and it also serves as a key component of the New Western Land-Sea Corridor. The canal begins at the Pingtang River estuary in the Xijin Reservoir area of Hengzhou District, Nanning City, Guangxi, and runs along the Qinjiang River through Luyu Town, Lingshan County, Qinzhou, before emptying into the Beibu Gulf. With a total length of 134.2 kilometers, the entire route has been constructed to Inland Waterway Class I standards. Upon completion, 5,000‑ton class river‑sea direct‑service vessels will be able to travel directly from inland ports on the Xijiang River to China’s coastal ports and major ports in Southeast Asia, thereby enhancing connectivity between domestic and international markets. This project will fundamentally transform Guangxi’s situation—where the region borders the sea but lacks direct navigable river‑to‑sea access.

The Jianghuai Canal, located within Anhui Province, will connect the Huai River, Lake Chao, and the Yangtze River, thereby re-establishing a major north–south waterway. Once operational, the canal will create an “I”-shaped inland navigation network across Anhui, eliminating the need to detour via the Beijing–Hangzhou Grand Canal between the Huai River and Yangtze River regions and shortening transport distances by 200 to 600 kilometers.

Henan Province has proactively planned the “11246” inland waterway transport project, aiming to develop four major river‑sea connectivity and cargo‑distribution corridors along the Huai River, Shaoying River, Tuo‑Hui River, and Tangbai River. The province also intends to build six modern ports—Zhoukou Port, Xinyang Port, Luohe Port, Pingdingshan Port, Nanyang Port, and Shangqiu Port—that will serve as key nodes in the national inland waterway network, linking the Yangtze River Delta and radiating throughout central and western China.

The Zhejiang–Jiangxi–Guangdong Canal comprises the Jiangxi–Guangdong Canal and the Zhejiang–Jiangxi Canal, with a total length of approximately 1,988 kilometers, of which 1,168 kilometers lie within Jiangxi Province, accounting for about 60%. Specifically, the Jiangxi–Guangdong Canal is planned to be roughly 1,228 kilometers long (758 kilometers within Jiangxi), with an estimated total investment of around RMB 150 billion; the Zhejiang–Jiangxi Canal is planned to be approximately 760 kilometers long (410 kilometers within Jiangxi).

The Xiang–Guang Canal originates in Yongzhou City, Hunan Province, passes through Jiangyong County of Yongzhou and enters Pingle County of Guilin City, with a total length of approximately 300 kilometers—212 kilometers in Hunan and 88 kilometers in Guangxi—including a 34-kilometer watershed section. According to preliminary research findings, the canal will be constructed to a 2,000-ton class standard, with an annual throughput capacity of about 80 million tons.

▍ Five-Engine Collaboration

Provinces in central and western China are advancing canal projects with investments totaling trillions of yuan, deeply integrating inland waterway transport with maritime shipping. Despite challenges related to financing, technology, and ecological sustainability, these initiatives are driven by five core pillars—“intermodal integration of rail, water, and road transport to cut costs and boost efficiency,” “green and low‑carbon transformation,” “regional economic integration,” “industrial ecosystem restructuring,” and “accelerated dual circulation”—and have become each province’s top priority. This strategic choice not only reflects an awareness of current economic realities but also calls for a long‑term development perspective to fully appreciate its far‑reaching implications.

First, the integration of rail and waterway transport reduces overall social logistics costs and enhances supply-chain efficiency. Waterborne transport costs are only one‑half those of rail and one‑fifth those of road; for example, following the opening of the Jianghuai Canal in Anhui, annual logistics savings in the hinterland have reached RMB 6 billion. Similarly, the Jinghan Canal in Hubei is expected to shorten navigation distances by 260 kilometers and cut transit times by 14 hours. Once the Pinglu Canal in Guangxi is completed, it will reduce the maritime shipping distance for goods from Southwest China by 560 kilometers, yielding annual freight‑cost savings exceeding RMB 5.2 billion.

Secondly, ecological conservation and the green, low-carbon transition are priorities. Water transport consumes far less energy and generates significantly lower carbon emissions than road transport; the Jianghuai Canal reduces annual carbon emissions by 1.8 million tons, while measures such as ship‑borne pollutant control and the widespread deployment of shore power facilities are being advanced in tandem.

Third, it promotes regional economic integration. The canal facilitates connectivity between inland provinces and coastal economic zones: for instance, the Jianghuai Canal enables Anhui to achieve “dual‑channel access to the sea,” while Henan has planned four river‑sea corridors that directly link the province to the Yangtze River Delta, swiftly connecting Henan’s interior with Anhui and the broader Delta region. Meanwhile, the Pinglu Canal can link Nanning with the Beibu Gulf area, enhancing direct interconnectivity between Guangxi’s inland and coastal regions and forging a new paradigm for integrated regional development.

Fourth is the restructuring of the industrial ecosystem. Taking the canal corridor as an example, each port will inevitably undergo a transformation of its economic and ecological framework—much like Guangxi, which has leveraged the Pinglu Canal to establish a demonstration zone integrating ports, industries, cities, and the sea, signing 13 projects in 2024 with a total investment of RMB 17 billion. In practical terms, this shift moves the focus from transportation to logistics, from corridor‑based economies to industrial economies, and from industrial economies to hub‑driven economies, ultimately giving rise to a comprehensive platform economy. Grounded in waterborne transport, it seeks to build a modern, integrated logistics system that synergizes with productive‑force spatial planning, forging a new industrial landscape characterized by “corridors + hubs + networks,” driving industrial restructuring, and exploring a collaborative development model of “industrial clusters + logistics hubs.” By optimizing across dimensions such as time, efficiency, and cost, it aims to attract new industries, thereby achieving a comprehensive reshaping of the local industrial structure.

Fifth, by connecting rivers to the sea and continuously accelerating both domestic and international circulation, we are steadily enhancing the national well-being index. The ongoing construction and opening of new canals will largely facilitate north–south exchanges, significantly enriching local product offerings while enabling the outbound shipment of regional goods. By reducing costs, this will boost local residents’ incomes and expand their choices of consumer products. Moreover, these new canal projects can link up with the Belt and Road Initiative’s southward and westward corridors, fostering the outward expansion of local products and the entry of overseas goods into the local market, thereby greatly broadening consumers’ purchasing options. Collectively, these new canal initiatives will play a pivotal role in facilitating domestic and international trade; whether in terms of sales or procurement, efficiency or cost reduction, they will all contribute to a sustained improvement in the national well-being index.

As canal construction accelerates, the “Five‑Pronged Synergy” is ushering in an unprecedented “golden age” for the inland waterway economy. This not only signifies a substantial reduction in logistics costs and deeper regional economic integration, but also heralds a comprehensive restructuring of the industrial ecosystem and the accelerated emergence of a dual‑circulation development pattern. The inland waterway economy will serve as a new engine for promoting balanced regional development, bolstering China’s drive toward high‑quality economic growth. Looking ahead, large‑scale inland infrastructure projects will continue to unlock immense potential, guiding China’s economic geography into an even more brilliant new chapter.