Equinox class

[Mr Link]

Looks like the Mingde Heavy Industries shipyard finally sold on the fifth attempt at an auction. $83.8 million US, or about 34% of the minimum bid set for the first round of bidding.

http://www.maritimeherald.com/2017/xiam ... -industry/

Perhaps the sale will finally bring some clarity as to the future of the CWB Strongfield. $84 million might not be that bad of a deal if it included the two Algoma/CWB hulls, the offshore supply vessel and the small bulk carrier seen in this year old photo. But i have seen no public announcement if the hulls sold with the shipyard.

https://www.google.com/maps/@32.0523929 ... a=!3m1!1e3

[Mr Link]

Splash 24/7 reports that Mingde Heavy Industries went through yet another round (#4 by my count, but their report says #3) of online bidding this month (July) and there were still no bidders. Minimum bid was down to CNY 812 million or $121.3 million US.

http://splash247.com/third-mingde-heavy ... ion-fails/

I still suspect that ever since the bankruptcy court got involved that the shipyard and all its assets (including the CWB Strongfield and other partially completed vessels) are being bid together as one lot. But at some point I would think the bankruptcy court would authorize the vessels to be sold independent of the shipyard. I guess time will tell.

[Guest]

CSL was offered the Algoma ships by the yard in China. But they turned them down. Not sure what the cost would have been.

[Mr Link]

Fairplay IHS has reported that Mingde Heavy Industries went through a third round of bidding on the internet based auction site Taobao, with no one offering the minimum bid (which I assume is set by the bankruptcy court). Round 1 was a minimum bid of CNY1.58 billion ($244 million US) on December 13th. Round 2 was a minimum bid of CNY1.26 billion ($195 million US) on January 20th. Round 3 was a minimum bid of CNY1.01 billion ($156 million US) on or around April 16th.

Still no verification that the almost-complete Strongfield is part of the bid package, but it appears that other shipyards in China have been liquidated as a complete package: yard, supplies, contracts and unfinished ships all up for bid as one parcel.

[Mr Link]

[H]ow they expect to get a refund from a bankrupt shipyard without being a preferred creditor I am not sure.

Info from the Algoma Central 3rd quarter 2015 financial report:

"All monies paid by the Company against these shipbuilding contracts are supported by refund guarantees issued by Chinese state banks."

"Cancellation of the Mingde contracts on their terms entitles the Company to demand repayment of construction instalments paid to date, along with accrued interest. The Company is currently enforcing its rights with respect to these recoveries."

Of course guarantees and warranties aren't free. I can't tell if Algoma Central or Mingde fronted the cost of the refund guarantees, but in either case, it appears to have protected Algoma Central from huge losses. Assuming the Chinese banks are financially capable of refunding the money that is.



As an aside, I never realized that installment is spelled instalment outside of the U.S. I thought Algoma had a typo in their financial report.

[mn brett]

Not one word (Algoma)would Man and operate the Boats?mn brett

[Mac Mackay]

The Canadian online Transport Canada registry still shows CWB Strongfield registered in Canada and owned by G3 Canada Limited.
That may mean G3 has an ownership claim.
Algoma's claim against the shipyard for repayment of money's paid in on its ships is going through arbitration, with some settlement reached, but how they expect to get a refund from a bankrupt shipyard without being a preferred creditor I am not sure.
G3's could go that way too, but maybe they could settle for getting the ship in an incomplete condition, paying less for it than if it had been 100% completed.

[Guest]

Why would The CWB take a chance of investing into shipping when there are so many shipping company's eager to do the work?
thank You mn brett

Two differing viewpoints from 2011 when the CWB was still owned by the Canadian Government:

http://www.albertafarmexpress.ca/2011/0 ... ing-ships/

http://www.producer.com/2011/03/ship-pu ... b-mandate/

[Guest]

I am still not clear on why the Strongfield was never delivered if it was practically finished. Last I saw from Algoma's website they had it out for trials. Based on the latest info, it seems there is a completed boat over there just sitting.

It appears that a Chinese bankruptcy court ordered the shipyard to immediately close and liquidate all assets right in the middle of CWB Strongfield's sea trials. The yard's assets have been up for auction twice now on Taobao, which is sort of a Chinese EBay. I think it is being auctioned as a complete package, not piecemeal, and that it didn't meet the minimum bid during the first auction. I had no luck tracking down this auction, but was curious to see of the listing included unfinished vessels such as the Strongfield.

I would suspect that whoever the eventual buyer is, they may offer the Strongfield to G3/Algoma but I can't imagine them taking possession unless a reputable shipyard is involved in completing the finishing touches on the ship.

[Guest]

From what I've read, 50.1% majority stake was sold to Global Grain Group (G3), which is joint venture between Bunge and SALIC Canada (a subsidiary of Saudi Agricultural and Livestock Investment Company.)

[garbear]

This is a bit off topic,but CWB has already changed the name of there new Straight decker,and renamed the Company,This usually means business restructure! Has the CWB already went bankrupt?,and why would The CWB take a chance of investing into shipping when there are so many shipping company's eager to do the work?
thank You mn brett

Brett-Maybe this will help.

https://www.g3.ca/news-releases/news/15 ... ent-in-cwb

[tugboathunter]

CWB was a branch of the government until last year when it was privatized. The joint venture that bought it is called G3, hence the new name of the ship.

[mn brett]

This is a bit off topic,but CWB has already changed the name of there new Straight decker,and renamed the Company,This usually means business restructure! Has the CWB already went bankrupt?,and why would The CWB take a chance of investing into shipping when there are so many shipping company's eager to do the work?
thank You mn brett

[Shipwatcher1]

I am still not clear on why the Strongfield was never delivered if it was practically finished. Last I saw from Algoma's website they had it out for trials. Based on the latest info, it seems there is a completed boat over there just sitting.

[Guest]

Seven ships total on order.

(2) 650-foot forward self-unloaders - Croatia - 2017 delivery
(3) 740-foot forward self-unloaders - Croatia - 2018 delivery
(2) 740-foot stern-mounted self-unloaders - Jiangsu Yangzijiang Shipbuilding, China - 2018

[tugboathunter]

Nantong shipyard was to build 8 of these vessels, but only three were delivered (Equinox, Harvester, Marquis). The fourth (Strongfield) was completed but not delivered and remains somewhat of a mystery. Algoma now has 5 ships being built by 3 Maj shipyard in Croatia: 2 650' SU, and 3 740' SU. Algoma also contracted with a second shipyard in China to build 2 740' SU. The remaining 4 740' SU that were to be built at Nantong appear to be completely out of the picture. So, Algoma is expecting 7 new ships over the next few years. The first ones should arrive in 2017.

[wlbblw]

Whats' the breakdown on the entire Equinox class? I can't keep the whole thing straight. Which ones were ordered by who & which ones are already delivered, which ones are canceled, what shipyard closed? which ones are contracted somewhere else & where? Its' all really confusing.