Guangzhou to get new cruise terminal in Nansha, part of $2 billion port upgrade

Danny Lee , October 9, 2012 7:00am

Guangzhou plans on building a large cruise terminal in an attempt to set off a new wave of leisure travel among domestic travellers, who can see the world on the high seas rather than in the air.

Will large liners dock in Nansha?

The city’s ports are best known for hydrofoils, shipping containers and ship building, but that’s about to change. The new cruise terminal is expected to cost RMB2 billion (US$316 million). Officials will sink RMB12.7 billion (US$2.02 billion) into the project as part of a wider scheme to expand a number of ports and create extra capacity at container ports and beyond.

The news follows Beijing’s announcement of an RMB800 billion (US$127 billion) infrastructure war chest for provincial governments to revive the sagging economy.

Guangzhou plans to complete with neighbouring Shenzhen and Hong Kong, who are also building new cruise terminals.

The Shipping Tribune reported that:

The project is comprised of the phase two expansion of Xinsha port area, Nansha port area bulk terminal, expansion of Guangzhou port navigation channel, Nansha port area near-sea terminal and a cruise terminal.

While SinoShip News reports:

The cruise terminal project is to be located in the fast developing port complex of Nansha, 54km south of downtown Guangzhou and will occupy an area of 134,700 sq m and a quay length of 790 m, comprising of one 100,000-tonne and one 250,000-tonne cruise ship berths.

The development will allow Guangzhou to service ships such as Royal Caribbean’s 225,282-tonne flagship, the Allure of the Seas, which is currently the world’s largest cruise liner.

Hong Kong’s new cruise facility will be built on the old Kai Tak Airport runway and will have space for a 220,000-tonne liner.  Hong Kong is building the new Kai Tak facility due to increased demand and lack of capacity at the current Tsim Sha Tsui’s Ocean Terminal.

According to Jonathan Galaviz, a tourism industry analyst, it is a race to the finish regarding who will service the rising demand for cruises in Asia.  Mr. Galaviz told Bloomberg in June 2012:

“The cruise travel market in Asia is under-served…Cruise lines are going to be looking at the top two to three cities to have a home port in Asia and they need to have the infrastructure.”

Guangzhou and Shenzhen are aiming to fill this need. He also said:

“That can easily be made up for in the growing population of China and India and even Indonesia” as cruise operators seek new destinations for growth, Vu said. “Cruise lines are saying, yes, this is a potential market that we can tap.”

It seems that while Hong Kong can fulfil its role as an internationally-acclaimed city with fewer stringent visa rules for international travellers, mainlanders could opt to set sail from neighbouring PRD ports, provided companies decide to call there.

Photo credit: Dale Frost/Port of San Diego