Cruise liner blueprint to boost development

Yang Jian
The cruise liner economy has often been called a "golden industry floating on the golden waterway" due to its lucrative industrial chain and strong link to business.
Yang Jian
Cruise liner blueprint to boost development
Ti Gong

An artist’s rendition of the Baoshan Industry Park

The cruise liner economy has often been called a “golden industry floating on the golden waterway” due to its lucrative industrial chain and strong link to business.

Innovators at Baoshan Industry Park in north Shanghai are targeting a cluster of emerging industries and advanced manufacturing businesses while developing a first-class urban district.

The park, approved by the city government in February 2003 and covering 21 square kilometers, has released a blueprint to build the city’s top industrial development service provider in the north suburb, where three industrial zones in four leading industries have been targeted for development. They include the Shanghai Beijiao (North Suburb), Future Industry Park, Shanghai China State Shipping Corporation (CSSC) Cruise Liner Industry Park and the Hasco New Energy Car supportive industry park.

Baoshan Industry Park is one of the biggest manufacturing parks in the city and the closest to the downtown area. There remains about 6.7 square kilometers of land for future development, half for industrial use and about 1.3 square kilometers for commercial, business and residential facilities.

The international cruise liner industry park, jointly developed with the state-owned CSSC and Italian shipbuilding giant Fincantieri, has become a leading zone for China’s cruise liner economic development. The first of its kind in China, the park was initially launched in October 2016 amid the nation’s booming cruise liner travel trends and industrial development.

In 2017, Baoshan signed a letter of intent with CSSC, the nation’s largest shipbuilder, and Italian shipbuilder Fincantieri. Under the scheme, China’s first domestically developed luxury cruise liner is expected to set off on its maiden voyage from Baoshan by 2023.

The blueprint has mapped out plans to develop domestic luxury cruise liner design and manufacturing, making it a core research and industrial service base for China’s cruise ship industry.

“It will become an important platform and carrier for the extension of the upstream and downstream supply chain of the luxury cruise industry,” the park’s operators said.

“It is dedicated to the construction and refitting of cruise ships, cruise line supporting certification, exhibition centers, supporting bonded services and ship maintenance.

“It will cover specific sectors in the cruise liner industry, such as scientific research and industrialization of cruise ship core equipment along with development of cruise information, intelligent navigation, and internal, security and entertainment systems.

“It will also include testing and production, full-cycle technical support for cruise ships and ships.”

The initial phase of the park, covering 320,000 square meters, has been targeted for the cruise liner park. It aims to expand into 2 square kilometers in the future for quality and key luxury cruise liner projects.

The expansion area will introduce a more comprehensive cruise industry supply chain system and create a luxury cruise ship supporting industry ecosystem, covering ship assembly, software and auxiliary supporting functions.

A Baoshan Marine Technology Industrial Park, for instance, will be jointly developed with the CSSC and key Chinese shipbuilders such as the CSSC No. 708 Research Institute and the electronic technology company of CSSC.

Several other prominent projects and companies from home and abroad are also negotiating to develop in the park.

The Baoshan government has also released a series of preferential policies to support the cruise liner industry, especially for companies and projects based in the park.

In 2018, the district government released 35 new policies to support the cruise economy.

It pledged to spend at least 100 million yuan (US$14 million) every three years to encourage and support the cruise ship businesses.

The next decade will remain a golden period for the development of the industry as the domestic market will gradually mature, the district government said.

The cruise liner headquarters based in Baoshan, for instance, will receive 5 million yuan in assistance from the government. The amount will increase if companies make big contributions to Baoshan’s development.

The cruise ship headquarters will also receive a subsidy of 6 million yuan from the district government to purchase office buildings in Baoshan.

There is bonus for cruise liners operating at the Wusongkou International Cruise Terminal, Asia’s largest cruise liner port, in Baoshan.

Cruise ships operating at the terminal as a homeport will receive 20,000 yuan in government awards for each voyage, while ship companies making over 80 voyages in two years will receive a million yuan.

To support cruise liner manufacturing and supportive industries, the government has promised 10 million yuan in subsidies for those who have invested over 5 million yuan on equipment and formed manufacturing capabilities.

Top management and technical professionals can enjoy a 2-million-yuan award, while agencies who bring talent to the district could be in line to receive 500,000 yuan in awards.

Baoshan has been offering high-standard and quality services to cruise liners and companies from around the world.

Currently, over 50 cruise liner companies, including Costa Cruise Lines and MSC Cruises, are operating services from Baoshan.

The world’s leading cruise liner companies, including Carnival, Royal Caribbean, Norwegian, MSC and Genting, have deployed their biggest, latest and most highly-technical cruise liners to the Chinese market. And during this time Shanghai has become a signature homeport for a group of new cruise liners from industry leaders.

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