Algoma Central Corporation Launch of First Equinox Class Vessel
TSX : ALC
TORONTO, Dec. 24, 2012 /CNW/ - Algoma Central Corporation ("Algoma") is proud to announce the launch of the first vessel in its new series of Equinox Class vessels designed for service on the Great Lakes - St. Lawrence Waterway. The vessel will be named Algoma Equinox. The launching occurred at 07:28 local time, December 24, 2012 at the Nantong Mingde Heavy Industries shipyard in Nantong, China.
This Equinox Class series will include eight vessels consisting of four gearless bulk carriers (requiring shore-side equipment for cargo discharge) and four self-unloading bulk carriers. Algoma will own six of the series, consisting of two gearless bulkers and four self-unloading vessels. The expected delivered cost of these six Equinox vessels is approximately $300 million. The CWB will own the other two gearless bulkers which will be operated and managed by Algoma.
The Algoma Equinox is expected to commence operations in Canada during the 2013 navigation season. It will be followed by the delivery of the other seven Equinox Class vessels at approximately three month intervals through the remainder of 2013 and in 2014.
The Equinox Class represents the next generation of Great Lakes - St. Lawrence Waterway bulk cargo vessel. The ships have been specially designed to optimize fuel efficiency and operating performance thus minimizing environmental impact. A 45% improvement in energy efficiency over Algoma's current fleet average is predicted with the use of a modern Tier II compliant engine and a fully integrated IMO approved exhaust gas scrubber that will remove 97% of all sulphur oxides from shipboard emissions. The use of exhaust gas scrubbers represents the first application of an IMO approved integrated scrubber on a Great Lakes - St. Lawrence vessel class.
"This is a very exciting day for Algoma" said Greg Wight, Algoma President and CEO. "Today's launching represents the culmination of years of work by our employees to create the Equinox Class. We are very excited to achieve this important milestone and are looking forward to the completion of this vessel and its delivery to Canada in 2013."
About Algoma Central Corporation
Algoma Central Corporation owns and operates the largest Canadian flag fleet of dry and liquid bulk carriers operating on the Great Lakes - St. Lawrence Waterway, including 19 self-unloading dry-bulk carriers, seven gearless dry bulk carriers and seven product tankers. Algoma also has interests in ocean dry-bulk and product tanker vessels operating in international markets. Algoma owns a diversified ship repair and steel fabricating facility active in the Great Lakes and St. Lawrence regions of Canada. In addition, Algoma owns and manages commercial real estate properties in Sault Ste. Marie, St. Catharines and Waterloo, Ontario.
This press release may include forward-looking information within the meaning of applicable securities laws including information concerning the business and future results of Algoma. Forward-looking statements in this press release include statements about the purchase of vessels by Algoma. Readers are cautioned to not place undue reliance on forward-looking information. Actual results and developments may differ materially from those contemplated by this information. The statements in this press release are made as of the date of this release and are based on current expectations. Algoma undertakes no obligation to update forward-looking information, other than as required by law, or to comment on analyses, expectations or statements made by third-parties in respect of Algoma, its financial or operating results or its securities. Algoma cautions that all forward-looking information is inherently uncertain and actual results may differ materially from the assumptions, estimates or expectations reflected or contained in the forward-looking information, and that actual future results could be affected by a number of factors, many of which are beyond Algoma's control, including economic circumstances, technological changes, weather conditions and the material risks and uncertainties identified by Algoma and discussed on pages 13 to 17 of Algoma's Annual Information Form for the year ended December 31, 2011, which is available on SEDAR at www.sedar.com.
Image with caption: "Algoma Equinox being launched on December 24, 2012 (CNW Group/Algoma Central Corporation)". Image available at: http://photos.newswire.ca/images/download/20121224_C3371_PHOTO_EN_22197.jpg
Image with caption: "Algoma Equinox immediately following launch on December 24, 2012 (CNW Group/Algoma Central Corporation)". Image available at: http://photos.newswire.ca/images/download/20121224_C3371_PHOTO_EN_22198.jpg
SOURCE: Algoma Central Corporation
For further information:
Greg D. Wight, FCA
President and Chief Executive Officer
Senior Vice-President, Commercial