New Canadian Tankers to Shuttle Oil Products to East Coast Ports

Algoma Central Corporation, known for its dry bulk operations, has commissioned the first of two newly built product tankers that will be used for service in conjunction with Canada’s Irving Oil. The vessels will service Canada’s largest refinery with deliveries to ports in Atlantic Canada and the U.S. East Coast.

The Algoma East Coast arrived in St. John, New Brunswick today, April 28, after completing its inspections and entry into the Canadian shipping registry. It will be followed by the Algoma Acadian, which will arrive later this spring. She is currently in the Indian Ocean on her delivery run and they will need to undergo Canadian certification and registry before entering service. The vessels were built at the Hyundai Mipo Shipyard in South Korea and represent an investment of C$127 million (US$92 million) by Algoma in partnership with Irving Oil.

“These additions introduce a new asset class to the segment, enhancing our operational capabilities and expanding the markets we serve,” said Algoma’s President & CEO Gregg Ruhl. “This milestone in our newbuild journey has been incredible to witness, made possible through our collaboration with Irving and the dedication and expertise of our operations team.”

Algoma reports it has a fleet of 96 vessels, including 11 additional vessels under construction. It operates dry and liquid bulk carriers that serve critical industries throughout the Great Lakes-St. Lawrence Region and internationally and reports its domestic dry-bulk fleet is the largest fleet in the Great Lakes – St. Lawrence Seaway system.

The new ships are 37,000 dwt ice-class product tanker vessels ordered by Algoma and operating under long-term charter to Irving Oil, replacing two older vessels. They will be used to load products in Saint John for deliveries mostly to Halifax, Charlottetown and St. John's. They will also be used when needed for voyages to U.S. Atlantic Coast ports and other destinations such as Quebec and Montreal. With a capacity of 260,000 to 265,000 barrels, they will transport gasoline, diesel, jet fuel, and other products.

To ensure that the tankers are future-ready, they are designed for potential methanol operations with an ABS Notation – Methanol Fuel Ready and also high voltage and shore power ready. They were designed with enhanced ballasting capabilities to optimize operations in the Bay of Fundy.