China’s Pinglu Canal has entered the final stage of construction and is expected to begin trial operations as early as September.

The $10 billion waterway will extend 134 km from Nanning, the capital of Guangxi, to the Gulf of Tonkin, also known in China as the Beibu Gulf. The project is designed to give China’s inland regions faster access to international sea lanes and support trade with Southeast Asia.

The first route planned for the canal will connect Nanning with Yangpu Port in Hainan. The launch is set to coincide with the 23rd China-Asean Expo, which will be held in Nanning in September.

The canal is also linked to China’s wider effort to improve trade flows with the Association of Southeast Asian Nations. Asean has become China’s largest export market, and exports to the bloc rose 13.4% last year, helping offset a 20% fall in shipments to the United States.

Once trial operations begin, the 134 km canal will create a new inland-to-sea shipping link between Guangxi and the Gulf of Tonkin.