Chongqing - For manufacturers in southwest China, getting goods to overseas markets is becoming easier. 

The newly opened Pinglu Canal offers Chongqing and other inland industrial hubs a shorter route to the sea, cutting more than 560 kilometers off the journey and potentially reducing logistics costs by up to 30%. 

These new transport options were among the opportunities discussed at a business matchmaking conference on the ILSTC and low-carbon industrial cooperation in Chongqing on October 16, which brought together officials, logistics companies and investors.

An aerial drone photo taken on September 29, 2026 shows cruise boats at a waterway service area of Pinglu Canal in Qinzhou, south China's Guangxi Zhuang Autonomous Region. (Photo/Xinhua)

A drone photo taken on December 30, 2025 shows the 10 millionth twenty-foot equivalent unit (TEU) container of this year being hoisted at the Beibu Gulf Port in south China's Guangxi Zhuang Autonomous Region. (Photo/Xinhua)

The Matchmaking Meeting on Strategic Opportunities of the New International Land-Sea Trade Corridor and Industrial Cooperation in "Dual Carbon" Practices is held in Chongqing on October 16, 2026. (Photo/Deng Xiaolong)

For Chongqing-based Changyong Logistics, the shift is already changing its plans.

"Our cargo mainly includes automobiles, motorcycles, machinery and electrical products, as well as chemical materials," said Ye Shenghui, chairman of Chongqing Changyong Logistics Development Co., Ltd. "As the economy of the Chengdu-Chongqing region grows, one transport route is no longer enough."

Ye said the combination of railways, waterways, the Pinglu Canal and Yangpu Port could give western manufacturers more options for reaching global markets.

The company has already invested in Yangpu, with four vessels in operation and another being added.

Wang Jianmin, Chairman of Yangpu International Investment Consulting Co., Ltd. (Photo/Deng Xiaolong)

From port to industrial hub

Located in Danzhou on the western coast of Hainan, Yangpu is an international shipping hub within the Hainan Free Trade Port. Its development increasingly links port logistics with trade, manufacturing, energy and services.

"After the canal opened, we began working with ports and industrial parks along the route and mapping their industrial resources," said Zhang Hailiang, assistant president of Yangpu International Investment Consulting Co., Ltd.

The aim, he said, is to turn the additional cargo generated by the canal into new business and investment in Yangpu.

Yangpu is pursuing a "dual-direction, dual-hub" strategy, connecting east-west and north-south shipping routes while serving as a hub for domestic and international trade, with a focus on ASEAN and Indian Ocean markets.

That means attracting not only cargo, but also the companies behind it, from trading and logistics firms to manufacturers and shipping-related businesses.

Free trade policies draw manufacturers

Hainan's free trade policies are another part of the pitch. The Hainan Free Trade Port has expanded its "zero-tariff" coverage to about 6,600 tariff lines, or around 74% of all tariff lines. Eligible goods processed in Hainan with at least 30% value added can enter the Chinese mainland without import tariffs, subject to other applicable taxes.

In the first eight months of 2026, Hainan's foreign trade reached 253.75 billion yuan (about 37.9 billion U.S. dollars), up 55.2% from a year earlier.

"Hainan's free trade port gives companies more confidence in going global," said Huang Yonghong, deputy director of the Hainan Provincial Department of Commerce.

For Chongqing businesses, the proposition is straightforward: keep production close to the city's established manufacturing base while using Hainan as a gateway to overseas markets.

"Chongqing manufactures, and Hainan provides a gateway to overseas markets," said Jiang Xiaoning, president of the Chongqing Hainan Chamber of Commerce.

He said companies were particularly interested in Yangpu because of its port infrastructure, shipping links and free trade policies.

A hydrogen company tests the model

Some companies are already putting that model into practice.

Shanghai Hytek Ocean established operations in Yangpu in April 2026. The company develops hydrogen fuel-cell two-wheelers and plans to manufacture key components and vehicles in Danzhou.

"We were very clear that we wanted to invest and establish production in Danzhou," said Lyu Zhenxing, the company's deputy general manager.

Its hydrogen-powered two-wheelers have accumulated more than 200,000 kilometers of road testing in Hainan. The company plans an initial investment of about 50 million yuan and a production line with an annual capacity of 12,000 units.

It is also developing on-site hydrogen production and refueling equipment, eliminating the need to transport and store compressed hydrogen.

The company is preparing for European certification and sees Spain as a potential first overseas market.

"We hope products made in Danzhou can serve not only the domestic market but also overseas markets," Lyu said.

A green shipping bet

Yangpu is also betting on cleaner energy to strengthen its position in global shipping.

In July 2025, the COSCO Shipping Yangpu received 200 tons of green methanol at Yangpu Port, marking a domestic green-methanol bunkering operation. The port is also developing green fuel storage and projects involving offshore wind, green hydrogen, and green methanol.

For logistics companies, the shift could become increasingly important as international shipping faces growing pressure to cut emissions.

Wang Hongqi, chairman of ZG-EXPRESS Supply Chain Group, said his company is already involved in importing new-energy raw materials and sees green shipping as a long-term trend.

The company, which operates overseas warehouses in multiple markets, is looking to Yangpu as a new logistics base for Southeast Asia and Africa.

"We hope to use Yangpu Port as a hub to open a new logistics route and better serve our customers," Wang said.