TORONTO, Sept. 10 /CNW/ - Algoma Central Corporation regrets to announce
the loss of the Algoport, a jointly owned vessel with its partner, an
unrelated party, in Seaway Marine Transport.
The Algoport broke up in heavy seas in the Pacific Ocean on September 6,
2009 local time while under tow enroute to the Chengxi Shipyard in China.
There were no injuries, loss of life or environmental impact.The vessel's aft
end was to be refurbished and fitted to a new forebody currently under
construction at the shipyard.
The Corporation expects to record a gain of approximately $2 million in
the third quarter of 2009 as the insurance proceeds will exceed the net book
value of the Algoport.
The insurance proceeds will be used to source an alternate aft end to
attach to the forebody under construction and it is expected there will be no
material cash impact to the Corporation as a result.
Algoma Central Corporation, with its unrelated partner in Seaway Marine
Transport, is the largest operator of dry-bulk vessels on the Great Lakes -
St. Lawrence Seaway. Algoma Tankers operates seven product tankers throughout
the Great Lakes to the Eastern Seaboard. The Corporation has five product
tankers under construction that will join its one existing international
product tanker and 18 additional product tankers owned by unrelated partners
in Hanseatic Tankers. With its unrelated partners, the Corporation is part of
a 29 vessel ocean-going dry bulk fleet. The Corporation jointly owns five
vessels and wholly owns two of the vessels in the group. The Corporation also
owns three ocean-going geared bulk carriers. The Corporation provides
diversified ship repair, diesel engine repair services and fabrication
services to ship-owners and industrial customers throughout the Great Lakes -
St. Lawrence Waterway. The Corporation also has a mix of commercial real
estate properties in Sault Ste. Marie, Waterloo and St. Catharines, ON.
For further information:
For further information: Greg D. Wight, President and Chief Executive
Officer, (905) 687-7850; David G. Allen, Vice President, Finance and Chief
Financial Officer, (905) 687-7897