Canada: Algoma to Invest USD 500 Mln in Fleet Expansion

February 13, 2012

Algoma Central Corporation, the owner of Canada’s largest domestic fleet of vessels operating on the Great Lakes – St. Lawrence Waterway, is planning to invest $500 million in order to renew its aging fleet.

New vessels will feature easier gliding through water and directing more water to the propeller, slippery coatings and rust resistance in the rust-prone ballast compartments. They will be able to develop greater speed compared to the current vessels and the loading capacity will be expanded. Fuel consumption will be reduced by 45% due to integration of smaller motors thus emissions will be decreased by 40%. Advanced accommodation capacity requires a crew of 19 members.

The first Algoma vessel is expected to be delivered in 2013 and each newbuild will remain in service approximately 30 to 40 years.

The new Equinox vessels are undergoing construction at Mingde Heavy Industry Co. Ltd. after being designed in Finland. Algoma revealed in 2011 its plans to order six new, freshly designed dry-bulk vessels among its fleet of 28 domestic freighters.

An order was placed for two more vessels which would be paid for by the Canadian Wheat Board and operated by Algoma.

Furthermore, in 2010 and 2011 two additional off-the-shelf design Algoma vessels were delivered.

Algoma Central Corporation’s Greg Wight stated that the company’s new investments are based on maintaining the steady, current demand for lake freighter services.

The St. Catharines, Ontario-based company is the largest Canadian shipowner and operator of domestic, Great Lakes vessels. This fleet consists of thirteen self-unloading and five gearless bulk carriers and seven product tankers. The Corporation has interests in ocean dry-bulk and product tanker vessels operating in international markets. The Corporation owns a diversified ship and diesel engine repair and fabricating facility active in the Great Lakes and St. Lawrence regions of Canada.

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Shipbuilding Tribune Staff, February 13, 2012; Image: mdship