Pinglu Canal Vessel Lockage Trial Toll Standards Officially Announced

Deep News
Aug 22

The Guangxi Zhuang Autonomous Region Development and Reform Commission and the Department of Transport have jointly issued a notice clarifying the toll collection matters for vessels transiting the Pinglu Canal locks. The policy, approved by the regional government, aims to advance water transport infrastructure, enhance waterway conditions, and regulate lockage fee practices to support the growth of the region's shipping industry.

The fee will be levied on a per-lockage basis, calculated uniformly according to the gross tonnage recorded on each vessel's certificate for all ships passing through the Madau, Qishi, and Qingnian locks. This standardized approach is designed to simplify verification while ensuring equitable treatment across different vessel types.

From the canal's opening date until September 30, 2031, the trial fee is set at 1.0 yuan per gross ton per lockage. Once this trial period concludes, the official fee will be determined by taking into account the locks' operational performance, total investment, loan repayment schedules, and the investment payback period.

The policy encourages the lock operator to adopt voluntary differentiated pricing, allowing it to adjust fees flexibly based on factors such as season and vessel type, provided that reductions do not exceed the trial standard. This mechanism is intended to give the operator leeway to support market development while remaining within the established cap.

Vessels that qualify for toll exemptions under national and regional regulations will continue to be exempt when transiting the three locks. The charging entity is Guangxi Pinglu Canal Construction Co., Ltd., a subsidiary of Pinglu Canal Group Co., Ltd., which will be responsible for implementing the fee schedule.

As a commercial service fee, the lockage charge must be accompanied by tax invoices issued by the tax authorities. The operator is required to prominently display the fee items, standards, and services at the toll location, ensuring transparency and subjecting itself to oversight from development and reform, transport, market regulation, and tax departments, as well as public scrutiny. The operator must also communicate the policy clearly to users and deliver quality service to ensure smooth implementation.

Background and Purpose

As a key project of the New Western Land-Sea Corridor, the Pinglu Canal holds strategic importance for the economic advancement of Guangxi and the broader southwestern region. The waterway includes three cascade hub locks scheduled to open for navigation soon. Under the regulations governing the canal's protection and management, the fee standards are set by the regional Development and Reform Commission in collaboration with the Department of Transport, pending approval from the regional government.

Policy Principles

The policy framework balances the long-term maintenance needs of the locks with the financial capacity of shipping companies, aiming to keep transit costs reasonable while maximizing the advantages of the river-sea intermodal route. Three core principles guided its formulation: fairness, ensuring that those who benefit pay their share and that all shipping stakeholders are treated equitably to maintain healthy market competition; scientific rationality, basing fees on actual costs while analyzing the shipping market, cargo structures, and affordability; and transparency, strictly following legal pricing procedures and safeguarding the rights of market participants to be informed, involved, and heard.

Development Process

The fee schedule was developed through rigorous cost investigations in line with government pricing regulations. After drafting the proposal, authorities solicited public and stakeholder feedback through multiple channels, held discussions with port and shipping administration agencies and shipping companies, conducted expert reviews, and organized public price hearings. The consolidated input was submitted to the regional government for final approval, ensuring that the entire process was lawful, comprehensive, and open.

Key Policy Provisions

The policy establishes the basis for fee calculation, the trial period, the enforcement entity, and exemption rules. Gross tonnage, a statutory registration metric, serves as the sole charging benchmark because it simplifies verification and guarantees fairness. The trial arrangement provides a foundation for reassessing and setting official rates later, based on operational revenues, expenditures, and debt repayment performance during the trial period.

Implementation Measures

To ensure smooth implementation, the policy introduces a differentiated discount mechanism that allows the operator to offer moderate reductions according to seasonal and vessel-specific factors, fostering the growth of the shipping market. Additionally, fee transparency and supervision are reinforced, with the operator required to publicly disclose fee schedules, explain the policy, standardize collection practices, and ensure the measures take effect smoothly.

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