Cruise company signs MOU to build ships

China State Shipbuilding Corporation and Carnival Corp & Plc, one of the largest cruise companies worldwide, sign a memorandum of understanding to build the first world-class cruise ships constructed in China on Thursday in Tianjin. [Photo by Liu Xiangrui/China Daily]

China State Shipbuilding Corporation and Carnival Corp & Plc, one of the largest cruise companies worldwide, signed a memorandum of understanding to build the first world-class cruise ships constructed in China at the opening ceremony of the 9th China Cruise Shipping Forum on Thursday in Tianjin.

According to Hu Wenming, president of CSSC, the first cruise ship is scheduled to be delivered within the next five years. It will have a displacement of 100,000 metric tons and a passenger capacity of 2,400 to 4,000.

The two companies will explore the possibility of a joint venture aimed at accelerating the development and growth of the Chinese cruise industry, said Arnold W Donald, president and CEO of Carnival.

China is likely to be one of the largest cruise markets in the world with annual passenger numbers of 4.5 million by 2020, according to the Chinese Ministry of Transport.

The memorandum outlines the framework for exploration of a partnership between Carnival and the CSSC that includes the possibility of forming a shipbuilding joint venture that could become a three-way arrangement also involving Fincantieri of Italy, one of the world's largest cruise ship building companies, to support the Chinese government's plans to grow its cruise industry to meet growing demand from Chinese travelers.

"Carnival will work closely with CSSC and Fincantieri to help define the first-ever, world-class cruise ship built in China," Donald said. "I believe CSSC is a partner who can help us to fully realize our goals."

Carnival has a portfolio of cruise brands in North America, Europe, Australia and Asia. These brands operate more than 100 ships totaling 212,000 lower berths.