Carnival Corporation signs MOU with China State Shipbuilding Corporation
Carnival Corporation & plc, the world's largest cruise company, has announced it has signed 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, expected to be one of the largest cruise markets in the world with 4.5 million passengers by 2020, according to the Chinese Ministry of Transport (MOT), the company said in its press release.
Becoming official at a signing ceremony today at the Ninth China Cruise Shipping and International Cruise Expo in Tianjin, the MOU outlines the framework for exploration of a partnership between Carnival Corporation and the CSSC that includes the possibility of forming a shipbuilding joint venture that could become a three-way arrangement involving Fincantieri of Italy, the world's largest cruise ship building company, in support of the Chinese government's plans to grow the cruising industry in China and meet escalating demand for cruises from Chinese travelers.
As part of the possible shipbuilding joint venture, Carnival Corporation would work closely with CSSC and Fincantieri to help define the first-ever, world-class cruise ship built in China. Carnival Corporation, the world's leading cruise operator, has been involved in building modern cruise ships that exceed guest expectations more than any entity in the world. Under the joint venture concept, Carnival Corporation would provide its ship design and shipbuilding expertise to create the vision, definition and overall specifications for the China-built cruise ship.
The MOT projects China to be the second largest global cruise market after the U.S. in the next several years based on economic growth, increased spending power of Chinese consumers and growing demand for cruise vacations in China. Partnerships like the relationship being fully explored between CSSC and Carnival support the MOT's pro-growth cruise policies designed to spur new economic development from tourism in China.
Carnival Corporation just recently announced its plans for immediate capacity growth in China in 2015 to meet growing demand. With Costa Cruises adding the Costa Serena to its fleet in China in April of next year, Carnival Corporation will be the first global cruise company with four ships homeported in China, growing the company's leading market presence by 140 percent from 2013 – 2015. Costa Serena joins Costa Atlantica, Costa Victoria and Sapphire Princess already homeported in China.
With its Costa and Princess brands homeporting ships in China, Carnival Corporation offers Chinese travelers a diversified cruising product with two brands targeting two different segments of travelers. Having multiple brands enables Carnival to meet and exceed guest expectations on the cruises it operates in China by closely matching passenger tastes with the right brand experience. In total, Carnival will have 220 port calls from five brands in China in 2014, which is 15 percent of the company's total port calls in all of Asia – a region where Carnival doubled its market share over the past two years.
The MOU also includes the exploration of other possible joint venture opportunities with CSSC including the potential to form a domestic cruise company, port development, talent development and training as well as supply chain and logistics.
About Carnival Corporation
Carnival Corporation & plc is the largest cruise company in the world, with a portfolio of cruise brands in North America, Europe, Australia and Asia, comprised of Carnival Cruise Lines, Holland America Line, Princess Cruises, Seabourn, AIDA Cruises, Costa Cruises, Cunard, Ibero Cruises, P&O Cruises (Australia) and P&O Cruises (UK).
