Algoma Central buys four veteran lakers

DECEMBER 27, 2017 — St. Catharines, Ontario, headquartered Algoma Central Corporation (TSX: ALC) has reached an agreement with American Steamship Company to acquire four vessels: the M.V. Buffalo (built 1978) , the M.V. Adam E. Cornelius (built 1973), the S.S. American Valor (built 1953) and the S.S. American Victory (built 1943).

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 availability of these vessels presented an opportunity to expand Algoma’s vessel fleet and capacity at extremely attractive values, says the company. It says that 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.

Algoma says that 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.”