Investment Rating - The report maintains a "Positive" investment rating for the inland waterway transportation industry [4] Core Viewpoints - The inland waterway transportation sector has long been underdeveloped, but a significant development era is about to begin. Compared to road and rail, water transport has clear advantages, with unit turnover rates and costs favoring water transport [4][7] - The "Four Vertical" channel project is expected to reshape the inland economic landscape, enhancing regional connectivity and promoting industrial transfer and upgrading [19][20] - The construction of the "Four Vertical" channels is still in its early stages, with expected acceleration in future efforts [4][19] Summary by Sections Investment Rating - The report maintains a "Positive" investment rating for the inland waterway transportation industry, indicating confidence in its growth potential [4] Industry Overview - The inland waterway transportation sector has been underdeveloped for years, with water transport's share increasing from 9.26% in 2000 to an expected 17.25% in 2024. However, the share of inland waterway cargo turnover remains low at 8.58% compared to 28% in Germany and 15% in the USA in 2020 [7][9] "Four Vertical" Channel Project - The "Four Vertical" project includes major waterways such as the Beijing-Hangzhou Grand Canal and the Jianghuai Line, aiming to create a modern inland waterway network that enhances transportation efficiency and reduces logistics costs [4][19] - The total investment for the Zhejiang-Guangdong Canal is estimated at approximately 320 billion yuan, with significant portions of the project already underway [21][23] Economic Impact - The construction of the "Four Vertical" channels is projected to significantly boost demand for construction materials and services, including explosives, cement, and aggregates [45][49] - The Jianghuai Line is expected to enhance the economic connectivity between the Yangtze River Delta and the Central Plains, with projected cargo turnover reaching 1.5 billion tons by 2027 [40][43] Future Prospects - The report highlights that the inland waterway transportation sector is set for rapid growth, with fixed asset investments in waterway and pipeline transportation showing significant year-on-year increases [20][21] - The ongoing construction of the "Four Vertical" channels is anticipated to further stimulate economic activity and improve logistics efficiency across regions [4][19]