With China’s first cruise ship delivered, unit of CSSC calls for Shanghai-based supply chain as it chases more orders

Shanghai Waigaoqiao Shipbuilding delivered the giant Adora Magic City last month and has another cruise ship in progress
Domestic and global suppliers should choose Shanghai for R&D and production to create a complete local supply chain, executive says

Belt and Road Initiative

Daniel Renin Shanghai

Published: 6:00am, 7 Dec 2023

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Shanghai Waigaoqiao Shipbuilding, which delivered mainland China’s first self-built cruise ship last month, is looking to establish a local supply chain as it pursues orders for more giant pleasure vessels to reinforce its position in a sector that is seen as a crown jewel of the manufacturing industry.

After garnering skills and experience building two cruise ships, Waigaoqiao will be confident pursuing more orders with support from local authorities and its parent company, the world’s largest shipbuilder China State Shipbuilding Corporation (CSSC), Zhou Xi, deputy general manager told the Post on Wednesday.

The shipbuilder plans to begin final assembly of its second cruise ship, code-named H1509, in April next year, before delivering it to operator CSSC-Carnival, a joint venture between its parent and the US-based cruise company Carnival, in 2026.

“After we deliver the second ship, we will certainly look for opportunities on the market,” he said on the sidelines of Marintec China, a trade fair taking place in Shanghai. “We feel comfortable in chasing more orders.”

02:19

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Adora Magic City, the first cruise ship assembled by Waigaoqiao, will set sail and start operations on January 1. It is also operated by CSSC-Carnival.

Waigaoqiao began constructing the Magic City in October 2019 and started building H1509 in August 2022.

The company said that the 323-metre-long Magic City required 20 times more worker hours to build than a so-called Capesize shipping vessel – the largest class of bulk ship that can carry any type of cargo. With a gross tonnage of 135,500, it can carry as many as 5,246 passengers.

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Only 40 per cent of the parts on the first ship came from Chinese companies, Zhou said, adding that more supply-chain firms from home and abroad are welcome to set up production facilities in Shanghai to form a complete ecosystem.

“It will be beneficial to leading Chinese and international supply-chain vendors if they decide to localise their research and development as well as production in Shanghai,” he said. “We will delve into cruise-ship building business with support from local authorities and our parent firm.”

Shipbuilding is one of the 10 core technologies included in Beijing’s “Made in China 2025” industrial strategy, an ambitious plan that aims to help the country catch up with global leaders in 10 key industrial sectors, including robotics, semiconductor chips and new-energy vehicles.

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Shanghai, the mainland’s commercial and financial capital, was Asia’s largest port for cruise lines before the coronavirus pandemic, with 2.5 million cruise passengers landing in or departing from Shanghai in 2019, according to customs data.

Beijing’s zero-Covid policy nearly crippled the city’s cruise industry, but the Ministry of Transport published an operating guide at the end of March to resume and promote cruise services in Shanghai as well as other cruise hubs like Shenzhen.

“The cruise business has not returned to normal despite the reopening from the pandemic early this year,” said Zheng Honggang, CEO of Shanghai-based Kate Travel Agency. “It is highly anticipated that China’s own cruise vessel will inject vigour into the market next year.”