China's Ministry of Transport  is bullish over the growth of its cruise industry and sees a 33 percent annual growth by 2020 with over 4.5 million domestic tourists exploring and visiting Asian destinations.

The Bohai Ferry Co. Ltd based in Shandong province established its new subsidiary that will enter the luxury cruise industry by acquiring a second cruise ship from Italy's Costa Crociera SpA.

Like Us on Facebook

The luxury ship, to be called Zhonghua Taishan (Mount Tai), was acquired at US$43.7 Million (271.5 Million yuan) and delivered just last week.

The Zhonghua Taishan weighs 24,000 gross tons and can accommodate 1,000 passengers. The cruise ship was built in 2000 in Germany and will travel through Southeast Asia and into Japan and Korea.

Bohai Ferry also established its own travel and booking unit to service its future operational needs, in anticipation for a boom in local and international tourists.

Bohai's General Manager Yu Xinjian said that the acquisition of a second-hand cruise liner is just their first step in expanding the business. The Zhonghua Taishan will give Bohai new experience in the cruise line industry.

Yu said Bohai is determined to build its own ships and set the mood in the Chinese luxury ship travel.

The China Cruise and Yacht Industry Association noted  that 1.4 million Chinese nationals took luxury ship tours in 2013, compared to only 10,000 in 2005.

A domestic operator, the HNA Tourism Holdings operate a cruise ship and reports that volume of passengers increased by nearly 75% by the end of 2013, from 2012.