Carnival Corporation has announced a memorandum of understanding (MoU) with the China State Shipbuilding Corporation (CSSC) to explore the possibility of a joint venture aimed at accelerating the development and growth of the Chinese cruise industry.
According to the Chinese Ministry of Transport (MOT), the Chinese cruise industry is expected to be one of the largest cruise markets in the world, with 4.5 million passengers by 2020.
The MoU outlines the framework for exploration of a partnership between Carnival and CSSC that includes the possibility of forming a shipbuilding joint venture (that could become a three-way arrangement involving Fincantieri of Italy) in support of the Chinese government's plans to grow the cruising industry in China and meet escalating demand for cruises from Chinese travellers.
As part of the possible shipbuilding joint venture, Carnival Corporation would work closely with CSSC and Fincantieri to help define the first cruise ship built in China.
Under the joint venture concept, Carnival Corporation would provide ship design and shipbuilding services for the China-built cruise ship.
In the past year, the Chinese Ministry of Transport has expressed its strong desire to transform China into a leading global cruise market, including investments in infrastructure and developing a strong domestic cruise presence to help spur growth in cruising as a key component of the expanding tourism industry in China.
The MOT projects China to be the second largest global cruise market after the United States in the next several years based on economic growth, increased spending power of Chinese consumers, and growing demand for cruise vacations in China.