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SAFETY4SEA

Carnival launches cruise joint venture in China

by The Editorial Team
November 7, 2018
in Shipping
Carnival launches cruise joint venture in China

Credit: Carnival

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The world’s largest cruise company, Carnival Corporation, announced the imminent launch of its cruise joint venture with China’s largest shipbuilder, China State Shipbuilding Corporation (CSSC), under the name ‘CSSC Carnival Cruise Shipping Limited’. The new China-based cruise company plans to operate its own fleet to serve Chinese cruise passengers by the end of 2019.

As part of the news, CSSC Carnival Cruise Shipping Limited announced an agreement to purchase two existing ships from Carnival Corporation’s Costa Group, performing in Europe and Asia. The first of these ships, the 85,861-ton, 2,210-passenger ‘Costa Atlantica’, is scheduled to be transferred to the new Chinese cruise line by the end of 2019. Costa Atlantica’s sister ship, the 2,114-passenger Costa Mediterranea, will be transferred at a date still to be announced.

As previously announced in June 2018, Costa Group will also introduce two new cruise vessels specifically designed for the Chinese market – Costa Venezia in spring 2019 and its sister ship in fall 2020.

Additionally, the new venture announced it has signed a contract to finalize its previously announced agreement to order two new cruise ships that will be built in China and serve the Chinese cruise market. The two new cruise ships will be constructed by Shanghai Waigaoqiao Shipbuilding Co., Ltd. (SWS), with the first ship expected to be delivered in 2023. The agreement also gives CSSC Carnival Cruise Shipping Limited the option to order four additional China-built cruise ships to serve growing demand from Chinese consumers.

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CSSC and Italian major shipbuilder Fincantieri S.p.A. have established a separate joint venture to grant a technology license of the ship model platform and to provide technical and project service support to SWS throughout the shipbuilding process.

The two new ships will be built with a design tailored for the new joint venture and the specific tastes of Chinese travelers. As the largest cruise company in the world with over 100 ships in its fleet and 22 ships on order through 2025, Carnival Corporation will utilize its deep industry expertise to provide onsite supervision and support during ship construction.

These agreements were signed on behalf of CSSC Carnival Cruise Shipping Limited by Costa Group’s Michael Thammand Yang Jincheng, president of CSSC, at a signing ceremony held at the China International Import Expo (CIIE) in Shanghai. Also in attendance were Carnival Corporation CEO Arnold Donald and Chairman Lei Fanpei of CSSC, among other representatives.

The official launch of our cruise joint venture in China is a significant milestone in the strategic development of a strong and sustainable cruise industry in China,

…said Arnold Donald, CEO of Carnival Corporation.

CSSC Carnival Cruise Shipping Limited – a joint venture partnership announced in 2015 with CSSC in which Carnival holds a minority interest – was formed with the goal to launch the first multi-ship cruise brand in China, specifically designed to serve the Chinese cruise market.

As the world’s top outbound tourism market, China’s 142 million outbound travelers spent an estimated $258 billion traveling abroad in 2017, according to the UN World Tourism Organization (UNWTO). By comparison, the Chinese cruise industry served only about 2.5 million cruise passengers last year, representing less than 2% of China’s outbound global travelers. As the industry continues to grow and develop in the region, China is widely expected to eventually become the largest cruise market in the world.

Carnival launches cruise joint venture in ChinaCarnival launches cruise joint venture in China
Carnival launches cruise joint venture in ChinaCarnival launches cruise joint venture in China
Tags: CarnivalChinacruise shipsshipbuildingworld's largest
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