NANNING, May 23 -- Construction of China's new canal, the Pinglu Canal, started on Tuesday in south China's Guangxi Zhuang Autonomous Region, according to the regional department of transportation.

The Pinglu Canal, stretching over 134 km with an estimated investment of 72.7 billion yuan (about 10.3 billion U.S. dollars), aims to link the Xijiang River, a major waterway in southwest China, with ports in the Beibu Gulf.

The canal will start at the Xijin reservoir in the city of Hengzhou and end at Luwu Town of Lingshan County, where ships can reach the Beibu Gulf via the Qinjiang River, opening a shorter route to the sea for Guangxi and other regions in southwest China.