Algoma Confirms Self-Unloader Contract with 3. Maj
- Business & Finance
Canadian shipping company Algoma Central Corporation has confirmed the contract with Croatian 3. Maj Shipyard to acquire a new Equinox Class 650’ self-unloading bulker upon completion of the vessel by the shipyard.
As World Maritime News already reported, 3. Maj and Algoma reached the agreement to restore the construction of the vessel on September 4, 2019.
The vessel, the second of two such ships that were to be built by 3. Maj for the company, is partially built and moored at the shipyard in Rijeka. Work on the vessel was halted in 2017 when the shipyard entered an extended period of financial difficulties.
Algoma took delivery of the Algoma Innovator, a sister ship and the first ship built under a two-vessel contract, near the beginning of the 2018 navigation season. The company subsequently canceled the contract for the second ship along with the contracts for three Seaway-max self-unloading vessels as a result of the financial problems at the shipyard.
In a separate statement, 3. Maj confirmed on September 19, 2019, it would receive state guarantees from the Croatian government to complete the ship in question.
Specifically, the shipyard will complete the vessel with financing provided by the Croatian Bank for Reconstruction and Development (HBOR) and has committed to a delivery date of September 15, 2020. Algoma will pay the agreed price of the vessel at delivery, subject to certain penalties for late delivery, including a cancellation right if delivery is delayed beyond an agreed date.
“We want to extend our sincere thanks to the Government of Croatia for their support of this project and the shipyard,” Gregg Ruhl, President & CEO of Algoma, commented.
“The Croatian government worked closely with the shipyard’s management to navigate a complicated process and successfully coordinate the interests of suppliers and workers to complete hull 733, which will be named Algoma Intrepid.”
Algoma Intrepid will join its sister ship Algoma Innovator, which entered service in early 2018. Both ships feature forward-mounted booms permitting cargo to be delivered at hard to reach docks typical for the company’s short sea clients.