China State Shipbuilding Corp (CSSC) has cemented its entry into the cruiseship market in partnership with Carnival Corp and Fincantieri with the signing of contracts for two newbuildings.
The project is valued at around $1.5bn and could mushroom to $4.5bn if options are exercised for four more vessels.
CSSC subsidiary Shanghai Waigaoqiao Shipbuilding Co (SWS) will construct the ships, the first of their kind built in China for the local market.
Smaller expedition vessels are already on order at China Merchants Heavy Industry for Florida-based SunStone Ships.
Lei Fanpei, chairman of CSSC, said: "Through the partnership with leading international enterprises, we will build a whole industrial chain, including cruiseship design and building, operations and supply chain…."
He said the cooperation with Carnival Corp and Fincantieri was receiving “great support” from the Chinese government at both central and local levels.
The CSSC contract signing in the presence of Michele Geraci, Under Secretary of State at the Italian Ministry of Economic Development, follows an agreement announced in February 2017.
A joint venture project set up by Fincantieri and CSSC Cruise Technology Development Co (CCTD) will grant a technology licence for the ship model platform, as well as providing various technical services to SWS.
Those services will include project and supply chain management, plus the supply of what are described as “fundamental systems and components.”
Cooperation expanded
European yards have until now dominated cruiseship building and a key reason has been their supply chain networks.
Fincantieri chief executive Giuseppe Bono has previously commented on the builder assisting its Italian suppliers, as well as other small and medium-sized Italian companies, to make inroads into China.
Last August, Fincantieri and CSSC announced an agreement that may extend their cooperation to include other areas.
Carnival Corp and CSSC formed a new joint venture cruise brand, CSSC Carnival Cruise Shipping, which will operate the SWS newbuildings.
They will be designed specifically for Chinese passengers, with the first pencilled in for delivery in 2023.
Each of them will be equipped with 2,215 rooms and capable of carrying up to 5,246 passengers. The first is pencilled in for delivery in 2023, while the second in 2024.
According to a filing from China CSSC Holdings, the flagship unit of CSSC listed in Shanghai, the ships will be flagged in Panama and classified by Lloyd’s Register and China Classification Society.
SunStone Ships expects to take delivery of what is likely to be the first Chinese built cruiseship for export as early as August 2019.
Arnold Donald, chief executive of Carnival Corp, describes the official launch of the cruiseship giant’s joint venture with CSSC as “significant milestone in the strategic development of a strong and sustainable cruise industry in China.”
He added: "Together with our partners, we are excited about our ability to launch a new cruise line in China based on existing ships and new China-built ships tailored for Chinese travellers.”
Bono referred to the opportunities presented by China.
“It is a reality that cannot be feared but, on the contrary, has to be assisted,” he said.
China had recognised Fincantieri’s leadership in cruiseship, he added.
