A Shanghai district government plans to spend about 5bn yuan ($739.97mn) to develop a cruise ship industrial park to house foreign firms that it hopes will help build China’s first luxury passenger vessels, a local official said.
China’s government has earmarked cruise shipbuilding as a major objective in its “Made in China 2025” programme to upgrade its manufacturing and support jobs at its shipyards, as domestic demand for cruise trips increases 30% a year.
Firms who set up shop in the new zone could expect financing support from banks and recently established government funds, Lei Shuguang, director on the administrative committee of Shanghai Baoshan Industrial Zone, told Reuters yesterday.
In May, Baoshan district signed a letter of intent with China State Shipbuilding Corp (CSSC), the country’s largest shipbuilder, and Italy’s Fincantieri to develop a hub to support a supply chain network for cruise shipbuilding.
This came after CSSC signed a $1.5bn deal with Fincantieri and US cruise operator Carnival to build China’s first luxury cruise ships in a move that has rattled European shipyards that currently dominate the industry.
Lei said the government plans to build offices and factories in the 10 square kilometre site in the north of Shanghai, and is applying for it to be designated a zone where firms will receive favourable customs treatment.
“We expect that in the next 5-10 years we will invest about 5bn yuan in this park,” he said.
“The supplier network will decide whether (China’s) cruise shipbuilding industry will succeed.”
He added that Fincantieri had given them its catalogue of suppliers which they planned to reach out to in coming months.
Some European shipbuilders fear China could come to dominate the cruise ship market, much as it has done in cargo ships over recent decades.
Still, learning how to build cruise ships will not be easy for the Chinese, given the complex web of suppliers needed to furnish items from luxury carpets to soundproofing, industry experts say.
The Waigaoqiao Shipbuilding in Shanghai. China’s government has earmarked cruise shipbuilding as a major objective in its “Made in China 2025” programme to upgrade its manufacturing and support jobs at its
shipyards as domestic demand for cruise trips increases 30% a year.
LEAVE A COMMENT Your email address will not be published. Required fields are marked*
Gas fracking to start in England again next week after 7-year halt
India is said to keep buying Iranian oil despite US sanctions
India’s central bank leaves key lending rate unchanged
Unilever drops Dutch HQ move after British investors rebel
World Bank to help Pakistan textile mills conserve energy
China’s new bank loans seen rising in September
European stocks extend their downturn after US jobs data
Startup nation? Entrepreneurs still toil in Macron’s France
Tesla’s Musk mocks SEC as judge demands they justify fraud settlement