Algoma Central Corporation purchases additional product tanker
Algoma Tankers Limited (ATL), an operating unit of Algoma Central Corporation, has announced the purchase of a 2010-built product tanker to become the eighth ship in Algoma’s Great Lakes based product tanker fleet. The 16,512 dwt vessel will be re-named the Algoterra as part of its transition.
“We expect to take ownership of the Algoterra in mid-March in Europe and she will join our fleet in early April. The ship will be the youngest tanker we operate and, as our newest ship, she will be the workhorse of the ATL fleet for many years to come,” said Gregg Ruhl, President and CEO of Algoma.
The acquisition of a second tanker vessel in just over three months demonstrates Algoma’s willingness to invest to meet the growing needs of customers for marine-based transportation of petroleum products. Acquiring high-quality assets is critical to the company’s commitment to operate in a safe and efficient manner. Algoma is taking advantage of the availability of attractive international assets in this segment, leverage robust existing infrastructure for technical and commercial management and capitalizing on its position as the employer of choice for Canadian seafarers across the provinces.
“With a long-term contract in place with a strong counterparty, we expect this acquisition to be accretive to earnings upon the ship’s arrival in Canada,” said Peter Winkley, Algoma’s Chief Financial Officer.
Algoma continues to invest in fleet renewal for its domestic fleet. The company also recently announced the delivery of the Algoma Conveyor, a 740-foot self-unloading dry-bulk carrier currently en route from China to join the 18 vessels of Algoma’s dry-bulk fleet early in the 2019 navigation season.