Cement Net Comments: 3000-ton Capacity Directly to Nanning Xijiang Shipping Upgrading Blows the "Horn" of Market Competition

Recently, Nanning has deployed the key work of transportation in 2026, which mentioned "striving to build the 3000-ton waterway project from Nanning (Niuwan) to Guigang on the Xijiang shipping trunk line". The 3000-ton waterway project from Nanning (Niuwan) to Guigang, the main shipping line of

the Xijiang River, starts at the Niuwan operation area of the central port area of Nanning Port and ends at the shipping hub of Guigang, with a designed waterway mileage of 228 km. It is planned to be built in 2026 according to the standard of Grade I inland waterway, with navigation of 3000-ton inland river ships and 5000-ton ship types. After the completion of the

project, the navigation guarantee rate of 3000-ton ships will reach 100%, and that of 5000-ton ships will reach 70%. What does it mean? It means that from Nanning, Guangxi, it can go directly to Guangdong, Hong Kong and Macao, and the 3000-ton cargo ship will go directly to the Pearl River Delta from Nanning.

For the cement industry with "low added value and heavy transportation", the waterway is the lifeline. Xijiang is the key channel for Guangxi cement to enter the Pearl River Delta market.

Guangxi is a province with large cement production capacity in China. By 2025, the clinker production capacity of the whole region will be 10292. (Source: China Cement Network). From the perspective of regional distribution, the clinker production lines in Guangxi are mainly concentrated in Nanning, Guigang, Laibin and other places, which are located along the Xijiang River. The unique

geographical location and the leading production capacity in the country make Guangxi cement have the "geographical advantages" to enter the Pearl River Delta market, and the Pearl River Delta has indeed been the core area of Guangxi cement export, with the total amount of cement exported from Guangxi to Guangdong reaching 20-25 million tons a year.

Taking Guigang to Guangzhou as an example, the comprehensive freight rate per ton kilometer of waterway is only 1/3 of railway and 1/6 of highway. The fuel consumption per thousand ton kilometer of waterway is less than 1/9 of that of highway. After the completion of the "Xijiang Shipping Trunk Line Nanning (Niuwan) to Guigang 3000-ton Waterway Project", the outward transportation capacity of Guangxi cement will be further strengthened, which will bring challenges to Guangdong, especially the Pearl River Delta market. After the completion of the 3000-ton waterway from

Nanning (Niuwan) to Guigang, it will bring about three changes:

First, the transportation cost will be further reduced. From the current small barges to 3000-5000 ton ships, the single transportation volume has been greatly increased, the unit transportation cost of large tonnage ships is significantly lower than that of small ships, and the navigation speed and frequency of ships will be improved after the upgrading of the channel grade.

Second, the penetration of Guangxi cement into the Pearl River Delta market will intensify. On the existing basis, the further reduction of transportation costs will make the price advantage of Guangxi cement in the Pearl River Delta market more obvious, the market share is expected to continue to expand, and the competition in the Pearl River Delta cement market will become more intense.

Third, local cement enterprises in Guangdong are facing greater pressure. The entry of Guangxi cement will suppress the price of local cement in Guangdong, squeeze the profit margin of enterprises, and further lose the market share of local cement enterprises in Guangdong.

With the completion and opening of the channel, the cement market in Guangdong and Guangxi will enter a new stage of development, and the market competition will become more intense, but it will also promote the development of the whole regional cement industry to a higher quality and efficiency direction in the competition.