July 31, 2007
Algoma exercises Turkish tanker option
Canada's Algoma Central Corporation has exercised an option through its wholly-owned subsidiary Algoma Tankers Limited, to purchase a second double-hulled petroleum product tanker from Med Marine Group.
The vessels are currently under construction at Med Marine's Eregli Shipyard, Turkey.
The vessels will operate in the Great Lakes--St. Lawrence Waterway and Atlantic Canada regions.
Delivery of the second ship is scheduled for April 2008 at an approximate cost, including an expected 25 percent import duty payment, of Canadian $42 million (US $39.3 million).
With these two additions, Algoma Tankers Limited will own and manage six Canadian-flagged tanker vessels. The corporation also owns a foreign-flag tanker through a wholly owned foreign subsidiary.
Including this purchase and the purchase announced on June 15, 2007, approximately Canadian $190 million (US $178 million) has been committed in modernizing the tanker fleet since 2002.