The year 2025 marked the completion of the 14th Five-Year Plan, and China’s waterway engineering industry delivered a resilient performance: total investment in highways and waterways exceeded RMB 2.6 trillion, about 900 km of high-grade waterways were added, and the 4.5‑meter depth waterway along the Wuhan–Chongqing section of the Yangtze River mainline was fully opened. Entering 2026, the first year of the 15th Five-Year Plan, the Pinglu Canal is on track to open to navigation within the year, construction of the new Three Gorges waterway is accelerating, and preliminary work on a cluster of mega‑canals is moving forward. The industry is transitioning from scale expansion to quality‑driven upgrading.
In 2025, fixed asset investment in national transport remained high. Total investment in highway and waterway construction is estimated to have exceeded RMB 3.6 trillion for the year, of which investment in highways and waterways surpassed RMB 2.6 trillion. Based on data for January–November, five provinces/regions – Zhejiang, Jiangsu, Guangxi, Guangdong and Shandong – each recorded waterway investment exceeding RMB 10 billion.
In terms of investment structure, waterway rehabilitation and upgrading became the core focus. Investment in inland waterways grew significantly faster than in ports, with capital directed towards high‑grade waterway connectivity, trunk–branch integration and bottleneck removal. In the first three quarters of 2025, national waterway construction investment reached RMB 160.5 billion, with a clear tilt towards inland waterway network improvement.
2025 was a “bumper year” for waterway engineering, with several major projects completed and put into operation, achieving historic improvements in navigable capacity.
Yangtze Golden Waterway leaps forward. On December 29, the Changjiang River Administration of Navigational Affairs announced that the main works of the second phase of the Jingjiang River waterway rehabilitation project in the middle Yangtze had been essentially completed. Following inspection of waterway conditions, the section was ready for initial navigation with a 4.5‑metre depth. With this, the 1,277.5 km Wuhan–Chongqing section of the Yangtze River mainline achieved full 4.5‑metre depth navigation. Vessels of 5,000 deadweight tonnes can now travel from Wuhan to Chongqing all year round – a historic leap in the capacity of the Yangtze Golden Waterway.
Coastal deep‑water main channel expanded. On December 26, the expansion project of the Tiaozhoumen waterway at Ningbo Zhoushan Port was opened for trial navigation, making Ningbo Zhoushan Port the first Chinese port whose core area possesses a “dual‑channel” for ultra‑large vessels. Based on the original 150,000‑tonne waterway, the project was designed to meet the standards of 300,000‑tonne oil tankers sailing with tide and 200,000‑tonne container ships sailing at any tide. The total navigable length increased to 48 km.
High‑grade inland waterways steadily extended. In 2025, China added about 900 km of high‑grade waterways. The total length of the national electronic navigation chart network exceeded 9,950 km. The network level of main corridors such as the Yangtze River, Xijiang River and Beijing‑Hangzhou Grand Canal continued to rise. Sichuan Province added 54 km of Grade IV and above waterways, bringing its total high‑grade waterway length to 2,054 km, achieving its 14th Five‑Year Plan target ahead of schedule.
A number of large‑scale, strategically significant waterway and navigation projects commenced in 2025:
The 1,000‑tonne navigation structure at Longtan Hydropower Station on the Hongshui River started construction on December 26, with an estimated total investment of RMB 5.346 billion. It will open the central corridor for waterborne exports from southwest China.
The Yancheng section of the Huaihe River estuary waterway project began in October, creating a new sea‑exit channel connecting the Beijing‑Hangzhou Grand Canal and the Lianshen Line.
The second phase of the 2,000‑tonne waterway rehabilitation project from Nianpanshan to Xinglong on the Han River (Grade II standard) was launched in November, with a total investment of about RMB 1.01 billion.
The land works of the 200,000‑tonne waterway at Tieshan Port, Guangxi commenced, with completion planned for 2027, enabling 24‑hour navigation for 200,000‑tonne vessels.
According to the 2025 annual report of CCCC, the industry leader, the company’s newly signed contracts for the year totalled RMB 1,883.672 billion, up 0.13% year‑on‑year, achieving 93% of its annual target. Among this, newly signed dredging contracts amounted to RMB 106.885 billion, down 7.87% year‑on‑year. Overseas business was a bright spot, with newly signed contracts reaching RMB 392.441 billion, an increase of 9.09%.
Overall, due to intensified competition and rising costs, CCCC’s net profit attributable to shareholders fell by about 37% year‑on‑year in 2025, with gross margin pressure becoming a common industry phenomenon.
In 2025, six ministries including the Ministry of Transport jointly issued the Opinions on Promoting High‑Quality Development of Inland Waterway Transport, setting a clear goal of building a modern inland waterway system that is smooth, efficient, green, smart, safe and resilient, and deploying 23 key tasks in seven areas.
Significant progress was made in smart waterway construction. The total length of the national electronic navigation chart network exceeded 9,950 km. Green construction techniques – such as digital electronic detonators and bubble curtains – were promoted on projects like the Fuling–Fengdu section of the Yangtze, making ecological dredging a gradual industry standard. Zhejiang actively advanced the “Shipping Zhejiang” initiative, and Ningbo Zhoushan Port maintained its position as the world’s busiest port by cargo throughput for the 16th consecutive year.
The most anticipated project in 2026 is the Pinglu Canal. As of November 26, 2025, the canal had completed about 87.1% of its total investment (RMB 63.36 billion) and 95.2% of its earth‑rock excavation (about 300.295 million cubic metres). The canal is being built to the national first‑class inland waterway standard, capable of handling 5,000‑tonne vessels.
On March 27, 2026, the Nanning section of the Pinglu Canal achieved full water flow, accelerating the push for opening to navigation within the year. The Maoweihai No.1 anchorage project is advancing at full speed to ensure completion and commissioning by September 2026. The Guangxi government has clearly stated in its 2026 work report that it will “make every effort to ensure the Pinglu Canal is opened to navigation and accelerate supporting works.” The canal’s smart operation system and electronic navigation chart will be launched simultaneously.
The new Three Gorges waterway project has been designated as one of the top priority waterway projects of the 15th Five‑Year Plan. The Ministry of Transport has emphasised the need to fully advance the project, establish sound working mechanisms, and ensure navigational safety. Hubei Province has included it in its 2026 list of key new and ongoing projects. The passage capacity of the Yangtze River will be systematically enhanced.
Local governments have set clear waterway targets for 2026:
Hunan plans to complete RMB 6.1 billion of waterway investment, accelerating the construction of a modern water transport system.
Zhejiang has published its “Trillions of Thousands” transport project list, including 16 inland waterway projects and 11 coastal port projects, with a clear emphasis on accelerating high‑grade waterway network construction.
Guangxi has allocated RMB 12.02 billion of key transport sector funds, focusing on highways, waterways and comprehensive transport.
Henan is planning 47 inland waterway projects with a total investment of RMB 141.6 billion, actively integrating into the Yangtze River Delta.
Sichuan aims to achieve RMB 6.5 billion of waterway transport investment and improve/upgrade 50 km of high‑grade waterways.
Shandong plans to commence major projects including the connection waterway between the Beijing‑Hangzhou Grand Canal and the Xiaoqing River.
China’s inland waterway sector is entering a “New Canal Era”. Preliminary work on a series of strategic canals – the Zhejiang‑Jiangxi‑Guangdong Canal, the Hunan‑Guangxi Canal, and the Jingjiang‑Han River Canal – is moving forward:
The Zhejiang‑Jiangxi‑Guangdong Canal, with an estimated total investment of about RMB 320 billion and a planned length of 1,988 km, would become the world’s longest canal, surpassing the Beijing‑Hangzhou Grand Canal and breaking the “economic circle around Jiangxi”.
The Hunan‑Guangxi Canal, planned to start at Yongzhou, Hunan and end at Guilin, Guangxi, with a total length of 300 km, would open a north‑south waterway corridor, shortening the waterway distance from the middle and upper Yangtze region to Beibu Gulf by about 1,200 km.
According to industry estimates, the total investment in these projects exceeds RMB 600 billion. Once completed, these canals will connect the Yangtze, Pearl, Qiantang, Gan and Xiang river systems, providing sustained medium‑ to long‑term demand for the waterway engineering industry.
High oil prices continue to exert cost pressures on the waterway engineering industry in 2026. Affected by the Middle East geopolitical conflict, VLCC freight rates on the core route from Ras Tanura (Middle East) to Ningbo, China, soared from US$16.1/tonne in January 2026 to US$76.67/tonne in March – a cumulative increase of 376%. Logistics costs for imported equipment and components have risen significantly.
At the same time, policy measures are providing counterweights: some local governments have introduced fuel‑price adjustment clauses in new waterway project tenders; budget guarantees for key national waterway projects have been strengthened; and reasonable price adjustment and schedule extension mechanisms are gradually being improved, supporting stable industry operation.
In 2025, China’s waterway engineering industry successfully concluded the 14th Five‑Year Plan with an expanded high‑grade waterway network, completion of major projects and optimisation of investment structure. In 2026, supported by the opening of the Pinglu Canal, the advancement of the new Three Gorges waterway, and accelerated preliminary work on mega‑canals, the industry is expected to maintain steady development.
In the short term, high oil prices, cost rigidity and fiscal coordination pressures remain real challenges. In the long term, driven by policy guidance, solid investment, and green and smart transformation, the industry is accelerating its transition from a traditional “asset‑heavy, energy‑intensive” model towards a new model that is green, smart and high‑value‑added. For enterprises, seizing opportunities from mega‑projects, strengthening contract risk management, promoting green and smart technologies, and optimising cost management will be key to adapting to industry change and enhancing core competitiveness.
(Data sources: Ministry of Transport, National Development and Reform Commission, CCCC 2025 Annual Report, Changjiang River Administration of Navigational Affairs, People’s Government of Guangxi Zhuang Autonomous Region, Provincial Transport Departments, Millionbce.com, China Securities Co., Ltd., Longzhong Information, etc.)
Chinese
English