TORONTO, March 17 /CNW/ - The Corporation, through a wholly-owned
subsidiary, has entered into an agreement to purchase three ocean-going
handy-sized bulk carriers from Viken Shipping AS, of Bergen, Norway for a
total cost of approximately $38 million. The vessels, which are sisterships,
were built in eastern Europe in 1986 (Sandviken) and in 1987 (Daviken and
Goviken). These maximum St. Lawrence Seaway size vessels each are fitted with
four cranes and have a carrying capacity of 34,000 tonnes. The vessels are
currently operating under long-term time charter agreements with Fednav
International Ltd. which the Corporation will assume.
This acquisition represents an excellent fit with the Corporation's
established and recently announced ocean shipping activities and the
Corporation is pleased to be able to assume charters with Fednav, an
established leader in ocean dry-bulk shipping. The acquisition also has the
potential to provide a competitive fleet renewal option for the Seaway Marine
Transport (SMT) gearless bulk carrier fleet. SMT is a partnership between the
Corporation and an unrelated party and it operates and manages the largest
fleet of dry bulk cargo vessels operating on the Great Lakes and St. Lawrence
Seaway. It is the Corporation's intention to make these vessels available for
use by SMT in Canadian-flag service upon the expiry of the existing Fednav
commitments. This decision will be based on market conditions at the time.
The Corporation owns two ocean-going self-unloaders through a
wholly-owned foreign subsidiary and an interest in five ocean-going self
unloaders through a joint venture. These seven vessels are part of a 29
vessel, ocean-going, self-unloader fleet that is commercially managed by CSL
The Corporation has previously announced the construction of five IMO II
product tankers in China to be delivered in late 2010 and early 2011. These
vessels, upon delivery, will be employed and operated in the Hanseatic Tankers
joint venture. Hanseatic Tankers plans to employ and operate 24 similar
product tankers with the expected trading areas to be focused in Europe, the
Mediterranean, the Middle East and Asia. The Corporation also owns a 1998
built foreign-flag product tanker through a wholly-owned foreign subsidiary.
It is expected this vessel, the Amalienborg, will also be employed and
operated as part of Hanseatic Tankers commencing in late 2008.
The Corporation owns and manages four Canadian-flag product tankers with
delivery of an additional two product tankers, the Algonova and AlgoCanada,
scheduled for the second half of 2008.
In addition to ocean shipping and product tankers the Corporation owns 19
Canadian flag dry-bulk vessels that operate on the Great Lakes - St. Lawrence
Waterway as part of the SMT fleet. As previously announced, the SMT partners
have entered into agreements to construct two maximum seaway size
self-unloading forebodies which will be attached to the refurbished and
upgraded aft-ends of the Algobay and Algoport.
The Corporation also 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, through a wholly-owned subsidiary, also owns and manages
commercial real estate properties in Sault Ste. Marie, St. Catharines and
For further information:
For further information: Tim S. Dool, President and Chief Executive
Officer, (905) 687-7878; Greg D. Wight, Executive Vice President and CFO,