Contracts inked for 2 newbuilds in Shanghai for Carnival-CSSC China cruise brand

The deal was firmed in the presence of the Undersecretary of State for the Italian Ministry of Economic Development Michele Geraci The deal was firmed in the presence of the Undersecretary of State for the Italian Ministry of Economic Development Michele Geraci PHOTO: Fincantieri

It's official: The contracts have been signed for the first two cruise ships to be built in China to operate for the new Chinese cruise brand CSSC Carnival Cruise Shipping Ltd. This seals agreements announced in February 2017.

Fincantieri grants a ship platform license

The $1.5bn deal envisions the first 133,500gt ship delivery in 2023 from Shanghai Waigaoqiao Shipbuilding Co., Ltd (SWS), a subsidiary of China State Shipbuilding Corp. (CSSC). Fincantieri will grant a technology license for a ship platform and provide technical services to SWS, including project management, supply chain management and sales of fundamental ship systems and components.

The design will be tailored to the tastes of Chinese travelers and for CSSC Carnival Cruise Shipping Ltd., the cruise brand of the joint venture between Carnival Corp. and CSSC, which will also operate the units.

'Significant milestone'

'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 Corp. & plc. '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 cruise ships tailored for Chinese travelers.'

Michael Thamm, group CEO, Costa Group and Carnival Asia, added: 'The new cruise joint venture complements our existing presence in the market and strengthens our commitment to help China build a holistic ecosystem and become a leading global cruise market.'

Strategy to develop an industrial chain for Chinese cruise shipbuilding

CSSC chairman Lei Fanpei said it was a strategic decision to enter the cruise industry in partnership with Carnival Corp. and Fincantieri.

'Through the partnership with leading international enterprises, we will build a whole industrial chain including the cruise ship design and building, operations and supply chain, jointly promote policy environment improvements and create an ecosystem that will nurture the sustainable growth of the cruise industry,' he said. 'Our cooperation continues to receive great support from the Chinese government at both the central and local levels. We wish to continue our win-win partnership from today on, to ensure the delivery of the first large cruise ship to be built in China by 2023.'

For Fincantieri CEO Giuseppe Bono, the deal is hugely important, with China representing an opportunity that's not to be feared, but assisted. It is a great country, he said, that is asking for this assistance in recognition of Fincantieri's leadership in the cruise shipbuilding sector.

Options for four more ships

The deal—which has options for four additional vessels—was signed in the presence of the Undersecretary of State for the Italian Ministry of Economic Development Michele Geraci.

See also 'Two Costa ships will transfer to new CSSC Carnival China brand'

Posted 06 November 2018

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Anne Kalosh

US editor of Seatrade Cruise Review and Seatrade Cruise News

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