September 20 (SeeNews) - Canadian marine transportation services provider Algoma Central Corporation said it has reached an agreement with Croatia's 3. Maj shipyard to acquire a new Equinox Class 650’ self-unloading dry-bulk carrier upon its completion.
The announcement comes after the Croatian government said on Thursday it is providing troubled 3. Maj with state guarantees for a 26 million euro ($28.7 million) loan, which will help the shipyard complete the vessel ordered by Algoma.
"We want to extend our sincere thanks to the Government of Croatia for their support of this project and the Shipyard," Algoma's CEO, Gregg Ruhl, said in statement on Thursday.
"The Croatian government worked closely with the Shipyard's management to navigate a complicated process and successfully coordinate the interests of suppliers and workers to complete hull 733, which will be named Algoma Intrepid," Rulh said.
Under the new contract, 3. Maj has committed to deliver Algoma Intrepid by September 15, 2020, the statement said, adding the buyer will pay the agreed price of the vessel at delivery.
Yet, there will be certain penalties for late delivery, including a cancellation right if the delivery is delayed beyond the agreed date.
The vessel is partially built and has been moored at the 3. Maj shipyard in Rijeka since 2017 when Algoma cancelled the contract after the shipyard entered an extended period of financial troubles.
This is the second of two such ships that were to be built by 3. Maj for the Canadian company, with Algoma acquiring the first vessel, a sister ship Algoma Innovator, prior to the start of the 2018 navigation season.
Back in 2017, Algoma cancelled the contract for the second ship along with the contracts for three Seaway-max self-unloading vessels in 2018 as a result of the financial problems at the shipyard.
The Canadian company said that Algoma Intrepid will be the newest and most efficient river class vessels to enter the Great Lakes market in nearly 40 years. Both ships, Algoma Intrepid and sister ship Algoma Innovator, feature forward-mounted booms permitting cargo to be delivered at hard to reach docks typical of Algoma's short sea customers.
($=0.904365 euro)