PHOTO: Carnival Corp. is operating four ships in Shanghai in 2015 and is furthering its expansion into China. (Photo courtesy of Thinkstock)
The world's biggest cruise company is accelerating its efforts to expand into China.
Carnival Corp. entered into another partnership with a Chinese company, this time signing a memorandum of understanding with China Merchants Group (CMG) to explore creating two joint ventures - one to form a cruise line for the domestic Chinese market and another to develop ports of call in the region.
"The memorandum of understanding we signed signifies a great opportunity to take the next step in the future of Chinese cruising, while addressing some key needs for both the cruise industry and its passengers in China," said Carnival COO Alan Buckelew, a long-time company executive who has moved to China to oversee the expansion.
Based in Hong Kong, CMG was founded in 1872 and focuses on transportation, infrastructure, financial services and real estate development.
The two companies will explore a joint venture that would own and operate its own cruise ships as part of the first domestic Chinese cruise line specifically targeted to the Chinese market. The joint venture could source new ships designed and built in China or acquire existing ships.
In November, Carnival signed a memorandum of understanding with Italian shipbuilder Fincantieri that could lead to building cruise ships at China's largest shipyard, China State Shipbuilding Corp. (CSSC). A month earlier, Carnival Corp. agreed to explore a partnership with CSSC.
Carnival and CMG also will explore a joint venture to develop turn-around and transit ports within and around China, beginning with a flagship port currently being developed by CMG called Prince Bay Cruise Terminal in Shekou, located in Shenzhen. The partners would work to have cruise ships sail from this port, while also developing other cruise destinations across China and Northern Asia.
While those aggressive plans are explored, Carnival Corp. is increasing its capacity in China by 140 percent from 2013. The company is deploying four ships in Shanghai this year - the Costa Serena, Costa Atlantica, Costa Victoria and Sapphire Princess.
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