Carnival Corporation and China Merchants Group Sign Memo of Understanding for Two Potential Joint Ventures to Help Expand the Cruise Industry in China

MOU will explore both Port & Destination Development and Ship-Owning joint ventures with the goal of potentially launching China's first world-class domestic cruise brand

Potential joint ventures build on Carnival Corporation's efforts in the past year to help China realize its goal to become one of the top cruise markets in the world

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Carnival Corporation & plc

Jan 26, 2015, 09:00 ET

MIAMI, Jan. 26, 2015 /PRNewswire/ -- Carnival Corporation & plc (NYSE/LSE: CCL; NYSE: CUK), the world's largest travel and leisure company, today signed a memorandum of understanding (MOU) with China Merchants Group (CMG) to explore the possibility of two joint ventures designed to accelerate the development and growth of the overall cruise industry in China.

The MOU outlines a potential strategic partnership between Carnival Corporation and CMG that includes exploring two possible joint ventures in support of China's ambitions to grow the cruising industry in China and meet escalating demand for cruises amongst Chinese travelers:

Ship-Owning Joint Venture: Carnival Corporation and CMG will explore a joint venture that would own and operate its own cruise ships as part of the first-ever domestic Chinese cruise line specifically targeted to the Chinese market. The joint venture would explore the possibility of sourcing new ships that are designed and built in China, along with the possibility of acquiring existing cruise ships.
Port & Destination Development Joint Venture: In this potential joint venture, CMG and Carnival Corporation would collaborate to develop turnaround and transit ports within and around China beginning with a flagship port currently being developed by CMG called Prince Bay Cruise Terminal in Shekou, which is located in Shenzhen. The partners would work to have cruise ships sail from this flagship port, while also developing other cruise ship destinations across China and Northern Asia.

"The MOU we signed today signifies a great opportunity to take the next step in the future of Chinese cruising, while addressing some key needs for both the cruise industry and its passengers in China," said Alan Buckelew, COO of Carnival Corporation. "With CMG's amazing track record, reach and influence in the market, we are working with a strategic partner that can help us explore immediate ways to impact cruise growth in China, including the possibility of a new Chinese cruise brand and new destinations."

Carnival Corporation and CMG formalized their strategic partnership during an event held today at the Hilton Shenzhen Shekou, including an MOU signing ceremony involving Yang Tian Ping, general manager of China Merchants Shekou Industrial Zone, and Alan Buckelew, chief operations officer of Carnival Corporation. The ceremony was also attended by the vice president of China Merchants Group, Sun Cheng Ming, among other distinguished officials and guests.

CMG, China's oldest state enterprise founded in 1872, focuses on transportation, infrastructure, financial services and real estate development, and has had a critical impact on the development of China's economy over the company's more than 140-year history. In support of China's goal to become a preeminent global cruise market, CMG and Carnival Corporation are collaborating as strategic partners to develop the infrastructure required to help accelerate growth in the cruise industry, which is one of the key emerging industries that could help fuel China's overall maritime economy.

While pursuing potential joint ventures to develop and grow the overall cruise market in China, Carnival Corporation remains committed to serving its Chinese guests who are already sailing on the two Carnival brands that give the company the cruise industry's leading presence in China – Costa Cruises and Princess Cruises.

Carnival Corporation just recently announced its plans for immediate capacity growth in China in 2015 to meet growing demand. With Costa Cruises adding the Costa Serena in China in April of this year, Carnival Corporation will be the first global cruise company with four ships homeported in China. Costa Serena joins Costa Atlantica, Costa Victoria and Sapphire Princess already homeported in China. Carnival Corporation is growing its leading market presence by 140 percent from 2013 – 2015 and expects to carry 500,000 cruise passengers in China in 2015.

About Carnival Corporation
Carnival Corporation & plc is the largest cruise company in the world, with a portfolio of cruise brands in North America, Europe, Australia and Asia, comprised of Carnival Cruise Line, Holland America Line, Princess Cruises, Seabourn, AIDA Cruises, Costa Cruises, Cunard, P&O Cruises (Australia) and P&O Cruises (UK).

Together, these brands operate 100 ships totaling 212,000 lower berths with 10 new ships scheduled to be delivered between 2015 and 2018. Carnival Corporation & plc also operates Holland America Princess Alaska Tours, the leading tour companies in Alaska and the Canadian Yukon. Traded on both the New York and London Stock Exchanges, Carnival Corporation & plc is the only group in the world to be included in both the S&P 500 and the FTSE 100 indices. Additional information can be found on www.carnival.com, www.hollandamerica.com, www.princess.com, www.seabourn.com, www.aida.de, www.costacruise.com, www.cunard.com, www.pocruises.com.au, and www.pocruises.com.

SOURCE Carnival Corporation & plc