Algoma Wins Final Arbitration Claim Against Mingde Shipyard
The London, UK Arbitration Tribunal hearing a contract dispute involving a fourth and final shipbuilding contract between Algoma Central Corporation and China’s Nantong Mingde Heavy Industries has found in favor of the Canadian dry and liquid bulk carrier operator.
The company entered into contracts in 2010 to build six Equinox Class bulk freighters to replace aging ships in Algoma’s domestic dry-bulk fleet.
As a result of the bankruptcy of the shipyard, only two of these vessels have been delivered and the company cancelled the four remaining contracts. Tribunal decisions in Algoma’s favor were received on all four cancellations. The UK Tribunal ruled in favor of Algoma on three other shipbuilding contracts in February 2016.
“With the resolution of the final refund claim against Mingde decided in our favor, we can now devote our full attention to building the vessels that we have ordered to replace the ones that Mingde did not complete,” said Ken Bloch Soerensen, President and CEO of the Corporation.
“We have begun collection proceedings for this final Mingde refund guarantee and expect to have this matter fully behind us in the near future.”
Algoma operates a Canadian flag fleet of dry and liquid bulk carriers on the Great Lakes – St. Lawrence Waterway, including 13 self-unloading dry-bulk carriers, seven gearless dry bulk carriers and seven product tankers.
The company has announced contracts for seven new Equinox Class domestic dry-bulk vessels as part of its on-going fleet renewal program. Algoma also owns four ocean dry-bulk vessels operating in international markets and has a 50% in three other oceans dry-bulk vessels.