International cruise giant Carnival Corp is teaming up with two Chinese state-owned enterprises (SOEs) to set up a joint venture worth 2.6 billion pounds that will offer cruise services for the Chinese market.
Carnival is partnering with powerful SOEs CSSC and CIS
The 25-year agreement for the joint venture was jointly announced by Chinese President Xi Jinping and British Prime Minister David Cameron during Mr Xi’s state visit to the UK. China State Shipbuilding Corporation （CSSC）will jointly acquire and operate a cruise liner with Carnival, and the name of the joint brand is yet to be announced.
Carnival’s COO Alan Buckelew told the media that 60% of the JV will be held jointly by CSSC and China Sovereign Wealth Fund’s China Investment Corporation, while Carnival will hold the remainder.
Mr. Buckelew said the partners will invest a total of US$4 billion in the joint venture in the first 10 years of the partnership.
Research group Euromonitor International has projected that China’s cruise industry will be worth US$11.5 billion by 2018, up from US$6.8 billion in 2013.
Carnival is currently operating in China with its Princess Cruises and Costa Cruise Line. In 2017, it will add the Carnival Cruise Lines and Aida Cruises brands to its lineup in China.(Translation by David)