Voyaging into new era in cruise trade

According to Wang, the vessel would be a result of in-depth collaborations between Chinese and international companies.

The construction of the 323.6-meter-long, 37.2-meter-wide and 72.2-meter-high Vista-class cruise ship needs 25 million components and parts, more than 500 direct suppliers and 12 million man-hours of work.

In addition, it would require a number of supporting industries, including maintenance, facilities and equipment, port services, insurance and financial services.

The prospect of huge business is spurring new enterprises and joint ventures. During the 1st China International Import Expo held in Shanghai in November 2018, Costa Cruises' parent company Carnival Corp, the world's largest leisure travel company, teamed up with CSSC to establish a cruise joint venture called CSSC Carnival Cruise Shipping Ltd. Carnival Corp also announced plans to dedicate the first two made-in-China cruise ships to the local market.

Meantime, CSSC-Fincantieri Cruise Industry Development Ltd, a joint venture between CSSC and Italybased Fincantieri SpA, the world's largest cruise shipbuilder, was also formed to work on the design of cruise ships.

"One of the opportunities that we see from upstream supply chain is shipbuilding. China is eager to improve its cruise shipbuilding techniques and Costa is more than willing to share its advanced technology and experience," said Zanetti.

This Costa-CSSC partnership strengthens the local cruise market and could help the latter to become a leader in the global market, he said.

In 2006, Costa Cruises became the first international cruise brand to enter China, and has since witnessed the development of the Chinese cruise industry. It has also driven consumer consumption in related industries.

In the global shipbuilding industry, the segment of large cruise ships is marked by high demand with supply falling short. The gap can potentially harm the sustainable development of the global cruise industry. So, CSSC Cruise Technology Development decided to work on the building of a cruise supply chain ecosystem, Wang said.

Zhou Qi, vice-president of Shanghai Waigaoqiao Shipbuilding, said: "The design and building of cruise ships is a complex and mega systems project that is completely different from the vessels I took part in building over the past two decades."

Wang is confident of bringing the localization rate of the supply chain to about 80 percent by 2030, approaching the level of Fincantieri, Meyer Werft and Chantiers de l'Atlantique (all of whom have a localization rate of more than 80 percent).

"This process will drive the development of a variety of companies home and abroad to set foot in and exploit the Chinese market together," Wang said.

Zanetti of Costa said: "Cruise tourism as an economic agglomeration often requires vertical integration of all related industries besides cruise ships."

Initiated in 2013, China's locally built cruise project by CSSC looks to explore a Chinese cruise industry development model through international collaborations and integration of resources with industry leaders.

"The supply chain of China's cruise industry is being gradually established, from port infrastructure, transportation facilities, shipbuilding and maintenance, to sightseeing, catering and shopping, talent training, and others," said Helen Huang, president of MSC Cruises China.