An aerial photo shows the construction site of one of the three inland waterway locks for the Pinglu Canal in South China's Guangxi Zhuang autonomous region. [Photo/cnr.cn]

The construction of a new canal linking Nanning, capital of South China's Guangxi Zhuang autonomous region, with the Beibu Gulf started on Tuesday.

The Pinglu Canal has a total length of 134.2 kilometers and a designed one-way annual capacity of 89 million tons.

The canal, expected to be completed by the end of 2026, starts at the Xijin reservoir in the city of Hengzhou and ends at Luwu town of Lingshan county of Qinzhou, where ships can reach the Beibu Gulf via the Qinjiang River.

The project mainly includes the construction of waterways, shipping hubs, water conservancy facilities and supports cross-river projects along the canal, with a total estimated budget of about 72.7 billion yuan ($10.3 billion).

Upon completion, the canal will not only support the development of its region but also become the shortest, most economical and most convenient sea outlet in southwestern China.

The Xijiang River waterway and the Beibu Gulf International Gateway Port will be connected, creating a new waterway for southbound transportation and optimizing the region's transportation structure.

Furthermore, the transportation cost reduction brought about by the transfer of existing channel cargo volume to the canal can reach up to more than 5.2 billion yuan per year, which will greatly support China's foreign trade economy and domestic transportation demand, and promote the development of industries along the canal.

The construction of three inland waterway locks, which are key components of the Pinglu Canal, has been underway since August last year and the first phase was completed in March.