China to Produce it First Luxury Cruise Liner with Italian Partner
The first luxury cruise liner in China can carry up to 5,000 passengers after its delivery in 2021, thus creating more opportunities for the country in entering the lucrative cruise liner market. The State owned China State Shipbuilding Corp., along with Italian shipbuilder Fincantieri Cantieri Navali Italiana SpA establishes a joint venture that will spend 25 billion yuan in building 5 luxury cruise liners.
CSSC has a 60 percent stake in the new company, and the Italians holds the remaining share. The investment will come from industrial development fund used by cruise liners from five Chinese banks which includes the Agricultural Bank of china, China Construction Bank and Bank of China. Based on the framework, Shanghai Waigaoqiao Shipbuilding Co. which is a subsidiary of CSSR is responsible for the building of the luxury liners, and each ships displaces 133,500 tons and with a length of 300 meters. Each ship cost 5 billion yuan and the Shanghai shipyard has already established a special department for the design work and is scheduled to start building in 2017.
The cruise liners will showcase Chinese elements and each guest rooms are decorated in the style of either traditional Beijing courtyard or the old fashion Shanghai residential room. Fincantieri, the Italian partner is one of the biggest cruise liner manufacturers in the world with 21 shipyard scattered in Asia, Europe, South and North America and has the capability of building all types of cruisers. A shipping industry professor at the Shanghai Maritime University stated that cruise liners is the only high tech products that China needs to master.
As of the moment, Asian shipbuilders are incapable of designing and building cruise ships independently and a cruise liner is usually the result of a combination of different technologies with 75 percent of the cruise liner value is handled by subcontractors.