A senior executive from Shanghai Waigaoqiao Shipbuilding Co. Ltd. announced on Wednesday, Dec. 2, that the construction of the country's first luxury cruise ship will start in 2017 and take three years to be completed for its maiden voyage, China Daily reported.
"We are already in negotiation with Italian shipbuilder Fincantieri SpA, which will provide technical support, and if everything goes smoothly, design work on the ship will start soon, building will kick off in 2017, and it will be delivered by 2020," said Chen Jun, vice president of Waigaoqiao Shipbuilding, which is under China State Shipbuilding Corp. (CSSC).
In October, CSSC, China Investment Corp. and Carnival Corporation & Plc, the world's largest cruise operator, signed a 2.6 billion pound ($3.88 billion) agreement, which will enable the three companies to set up a joint-venture operation in Hong Kong, and place orders with Waigaoqiao Shipbuilding.
The unprecedented growth in China's cruise industry is predicted to transform the country into the world's largest market.
"As many as 4.5 million Chinese passengers will go on cruise trips by 2020, and that figure will soar to 17.5 million by 2030," Chen said. "It is estimated that there will be an annual demand for five new cruise ships in the next 15 to 20 years in China alone."
Maurizio Cergol, a cruise ship designer from Fincantieri, said that out of the 1.4 million Asians who took a cruise last year, 700,000 of them were from the Chinese mainland.
Chen said the first Chinese liner will cost $1 billion and measures about 300 meters in length, 140,000 tons in weight, and 14-15 stories in height, with a capacity of 3,000 to 4,000 people.
The ship's design will incorporate both Chinese and Western style to meet the varying needs of Chinese passengers, Chen added.
According to the report, Italy, Germany and France have dominated the construction of the world's largest luxury cruise ships, with around 200 large-sized vessels in operation across the globe.
Industry figures, however, said that although eight large cruise ships are being launched annually, the current demand is only 13 ships.
The China Association of the National Shipbuilding Industry said that Chinese shipyards have received orders for 20.38 million deadweight tonnage in the first 10 months of this year, a decrease of 62.1 percent from the previous year.
Chen said that domestic shipbuilders are concerned about the declining orders and fierce competition and that the growing luxury cruise ship market could boost the industry.
"I am sure there are quite a few Chinese shipbuilders interested in building cruise ships, but they have to think twice before making such a decision, because the standards and requirements for building luxury vessels are very high," Chen said.
Fincantieri also cautioned shipbuilders that building a luxury vessel would require many different technologies and skills.