Carnival forms China venture to tap booming cruise industry

New York based Carnival Corp said it has signed a memorandum of understanding with China’s State Shipbuilding Corp. aimed at exploiting growth in China’s booming cruise ship industry, which is expected to balloon to 4.5 million passengers a year by 2020.
The two parties are considering potentially forming a shipbuilding joint venture.
This may evolve into a three-way arrangement involving Fincantieri of Italy, the world's largest cruise ship building company.
Carnival, the world’s biggest cruise ship operator, would work closely with CSSC and Fincantieri to help define the first-ever, world-class cruise ship built in China.
Arnold Donald, CEO of Carnival said, "the agreement enables us to work closely with CSSC to fully explore the possibility of a joint venture to further develop China into a leading cruise market".
The Ministry of Transport projects China will be the second-largest global cruise market after the U.S. in the next several years based on economic growth, increased spending power of Chinese consumers and growing demand for cruise vacations in China.
Carnival has already been expanding in the China market and will add the Costa Serena to its fleet there from April next year, giving the company four vessels in the market.