New Chinese cruise joint venture formally launches

New cruise joint venture signs agreements to purchase existing cruise ships for its fleet and order new China-built cruise ships for the Chinese cruise market. Signing representatives are, from left to right) Michael Thamm, Group CEO, Costa Group and Carnival Asia; Yang Jincheng, President of China State Shipbuilding Corporation (CSSC); Giuseppe Bono, CEO of Fincantieri

NOVEMBER 6, 2018 — Carnival Corporation & plc (NYSE/LSE: CCL;NYSE: CUK) reports that its cruise joint venture with China State Shipbuilding Corporation (CSSC) will launch this week under the name CSSC Carnival Cruise Shipping Limited.

The new company, in which Carnival holds a minority interest, has agreed to purchase two existing ships from Carnival’s Costa Group. The first of these ships, the 85,861-ton, 2,210-passenger Costa Atlantica, is scheduled to be transferred to the new Chinese cruise line by the end of 2019. Costa Atlantica‘s sister ship, the 2,114-passenger Costa Mediterranea, will be transferred at a date that is yet to be announced.

Additionally, the new company has signed a contract finalizing a previously announced agreement to order two new cruise ships that will be built in China and serve the Chinese cruise market.

The ships will be constructed by Shanghai Waigaoqiao Shipbuilding Co., Ltd. (SWS), with the first expected to be delivered in 2023. The agreement also gives CSSC Carnival Cruise Shipping Limited the option to order four additional China-built cruise ships.

A joint venture set up by Fincantieri and CSSC Cruise Technology Development Co. Ltd (CCTD) will grant a technology license of the ship model platform and provide a series of technical services to SWS, including project management activities, supply chain management and sales of fundamental systems and components of the ship.

According to Fincantieri, the shipbuilding project has a total value of about $1.5 billion dollars, not counting the options for an additional four vessels.

“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 Corporation. “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.”