Algoma Central Corp. is investing $127 million in two ice-class product tanker vessels to serve Atlantic Canada and the U.S. east coast, reports Welland Tribune.
Investment in deadweight tonnage vessels
The St. Catharines-based shipping company recently said it placed the order for the 37,000-deadweight tonnage (DWT) vessels with Hyundai Mipo Shipyard in South Korea.
Deadweight tonnage refers to how much weight a ship can carry based on cargo, fuel, fresh water, ballast water, provisions, passengers, and crew.
The company said delivery is expected in early 2025 and the two will enter as long-term time charters to Irving Oil under the Canadian flag, servicing the energy company’s refinery in Saint John, New Brunswick, with deliveries to ports in Atlantic Canada and the U.S. east coast.
“Strategically unlocking diversified marine shipping opportunities and new partnerships form fundamental pillars that continue to drive our growth and success,” said Algoma president and chief executive officer Gregg Ruhl in a release. He said investment expands the market served by the company’s product tanker fleet, which also serves the Great Lakes-St. Lawrence Seaway system and adds a new Canadian customer to its base.
“These vessels have been designed to support Irving Oil’s unique operational requirements and with a view toward optimizing the carbon requirements in these trades, now and into the future, possessing optionality for future methanol and shore power capabilities,” said Ruhl.
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Source: Welland Tribune
