The Carnival Corporation has signed a conditional and non-binding memorandum of agreement to order its first new cruise ships to be built within China specifically for the Chinese cruise market.

 

It is still early days for this venture however, since it is still subject to several conditions, including fully closing the joint venture agreement, plus financing and other key terms, which still have to be agreed.

 

As part of this new memorandum of agreement, Carnival has agreed to order two new cruise ships which are expected to be built by a newly formed China-based shipbuilding joint venture between China’s largest shipbuilder, China State Shipbuilding Corporation (CSSC), and Italy-based Fincantieri S.p.A., the world’s largest cruise shipbuilding company. There is also an option within the MOA for the joint venture to order a further two China-built cruise ships.

 

Carnival Corporation’s cruise joint venture in China will operate the new ships as part of its plans to launch the first multi-ship domestic cruise brand in China. Based on Carnival Corporation’s Vista-class platform, the design for the new ships will be tailored for the new Chinese cruise brand and the specific tastes of Chinese travellers. The first of these ships is expected for delivery in 2022.

 

The partners signed the memorandum of agreement at a signing ceremony last week at the 11th annual China Cruise Shipping and International Cruise Expo (CCS11) in Tianjin, China.

 

 

Carnival’s toe in the water is its first in the domestic Chinese cruise sector, which – combined with the international business – is widely expected to ultimately become the world’s largest cruise market in the world.

 

Separately, Carnival Corporation and its Chinese partners also announced today that the Chinese central government has now granted approval for the cruise joint venture to officially incorporate in Hong Kong. This news follows a standard regulatory approval process with Chinese officials that has taken place since the joint venture agreement was originally announced in London in October 2015.