Algoma Central Cancels Croatian New Build Contracts

Canadian shipping company Algoma Central Corporation has decided to cancel all four newbuild construction contracts with Croatian shipbuilder Uljanik.

The provider of marine transportation services announced in a press release that that it has taken steps to cancel its remaining four new build construction contracts with a Croatian shipyard.

The cancellation notices have been sent to the shipyard as a result of the Yard’s failure to secure refinancing and Algoma has no assurance that the shipyard will be able to complete the four vessels.

The Company will now initiate the process to be reimbursed for contract instalments paid to date, including issuing demands under related refund guarantees.

Every effort is being made to replace the cancelled vessels and the Company remains confident of their ability to provide capacity in the interim.

According to the press release, Algoma Central Corporation 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 expanded into international short sea markets through it 50% interests in NovaAlgoma Cement Carriers and NovaAlgoma Short Sea Carriers.