Shanghai to Spend $740M on Cruise Ship Park

Source: Reuters/Shanghai

Source: Gulf Times

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.

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