According to local officials, Shanghai district government intends to spend around 5 billion yuan (US$739.97M) to develop a cruise ship industrial park in order to house foreign firms which it hopes will help create China's first luxury passenger ships.
The government of China has distinguished cruise shipbuilding as a major objective in the programme "Made in China 2025" to upgrade manufacturing and support jobs at Chinese shipyards, as domestic demand for cruises increases 30% per year.
In May, Baoshan district signed a letter of intent with the country's biggest shipbuilder, China State Shipbuilding Corporation (CSSC), and Italy's Fincantieri to develop a cruise hub to support supply chain network for shipbuilding.
This came after CSSC had signed a US$1.5 billion deal with Fincantieri and cruise operator Carnival to build the first luxury cruise ships of China.
The government plans to build factories and offices in the 10 km2 site in the north of Shanghai, which is set to become a zone where firms will receive favourable customs treatment.