Algoma Central Corporation Announces Purchase of River-Class Vessels
Dec 21, 2017
St. Catharines, Ontario (December 21, 2017) — Algoma Central Corporation (“Algoma” or “the Company”) (TSX: ALC), a leading provider of marine transportation services, today announced it has reached an agreement with American Steamship Company (“ASC”) to acquire four vessels.
The Company has acquired the M.V. Buffalo, the M.V. Adam E. Cornelius, the S.S. American Valor and the S.S. American Victory. The availability of these vessels presented an opportunity to expand Algoma’s vessel fleet and capacity at extremely attractive values. Both the M.V. Buffalo and the M.V. Adam E. Cornelius will provide efficient capacity to serve customers in the river-class segment of Algoma’s Domestic Dry Bulk market. Both ships will complement the Company’s existing fleet to ship salt, aggregates, and other commodities. These additions enhance Algoma’s versatility in offering its customers different cargo sizes and vessel configurations to meet their specific needs.
The S.S. American Valor and the S.S. American Victory have the potential to be re-powered as motor vessels, converted to articulated tug barges, or have their forebodies mated with existing modern sterns; however, no immediate plan for these two vessels has been confirmed.
“Delivery of the vessels further solidifies our market position in the river-class segment where we see many opportunities”, said Gregg Ruhl, Chief Operating Officer at Algoma. “We are also working with our labour partners to develop a competitive labour structure for this segment.”
All four ships are former U.S. flag lakers that will be transferred to the Canadian registry for service in the Great Lakes - St. Lawrence trade. The Company’s purchase of these vessels and the on-going delivery of new builds combine to make the Company a leader in the marine industry. This acquisition illustrates Algoma’s innovative approach to the current market and highlights the potential for new growth in the Company.
About Algoma Central
Algoma Central Corporation is a publicly traded company which operates the largest fleet of dry and liquid bulk carriers on the Great Lakes - St. Lawrence Waterway, including self-unloading dry-bulk carriers, gearless dry bulk carriers and product tankers. Algoma also owns ocean self-unloading dry-bulk vessels operating in international markets. Algoma has begun an expansion into international short-sea markets through it 50% interests in NovaAlgoma Cement Carriers and NovaAlgoma Short-Sea Carriers. Algoma Central trades on the Toronto Stock Exchange under the symbol “ALC”. For more information, please visit www.algonet.com.
For further information please contact:
Peter D. Winkley, CPA, CA