China to Build its First Luxury Cruise Ship

 

The new firm will undertake research, design and development of cruise liners and related facilities. The joint venture will be registered in China (Shanghai) Pilot Free Trade Zone in Pudong New Area, the 21st Century Business Herald reported.

 

Construction of the first cruise ship will kick off in 2017, and will be delivered by 2021, according to Chen Gang, vice-president of Waigaoqiao Shipbuilding.

 

Waigaoqiao indicated last year that the ship would be the first in a $4 billion joint venture between Carnival, China Investment Corporation and CSSC. Its planned $1 billion vessels would be designed with Chinese preferences in mind, and will have a capacity of 3,000 to 4,000 passengers each.

 

Some 200 large-sized cruise ships are in operation across the world now. Shipyards can produce only eight such new vessels every year whereas the demand is for 13.

 

The gap may prove an opportunity for domestic shipbuilders that are now facing declining orders and fierce price wars in the highly competitive low-end market of bulk and oil tankers, according to industry experts.

 

Chinese cruise lovers reached 1.11 million in 2015, up 50 percent year-on-year. Last year was the first time their number surpassed the 1-million mark, according to the 2015 China Cruise Industry Development Report.

 

As many as 4.5 million Chinese will go on cruises by 2020, meaning 40 cruise ships will homeport in China, said Wu Zhenglian, a cruise design expert from a research institute under CSSC.