Boatnerd Discussion Forum

Story in Financial Post Canada that Algoma Central has purchased four US SHIPS. MV Buffalo, MV Adam E Cornelius, SS American Valour, SS American Victory.

Are the boats that are being retired and replaced any worse than the ones there buying?

Algoma Fleet just made the official announcement that they have purchased the Adam E. Cornelius, American Valor, American Victory and the Buffalo from the ASC Fleet. Go to the Algoma website for more info.

This just in from Algoma:

Algoma Central Corporation Announces Purchase of River-Class Vessels
Dec 21, 2017
________________________________________
St. Catharines, Ontario (December 21, 2017) — Algoma Central Corporation (“Algoma” or “the Company”) (TSX: ALC), a leading provider of marine transportation services, today announced it has reached an agreement with American Steamship Company (“ASC”) to acquire four vessels.

The Company has acquired the M.V. Buffalo, the M.V. Adam E. Cornelius, the S.S. American Valor and the S.S. American Victory. The availability of these vessels presented an opportunity to expand Algoma’s vessel fleet and capacity at extremely attractive values. Both the M.V. Buffalo and the M.V. Adam E. Cornelius will provide efficient capacity to serve customers in the river-class segment of Algoma’s Domestic Dry Bulk market. Both ships will complement the Company’s existing fleet to ship salt, aggregates, and other commodities. These additions enhance Algoma’s versatility in offering its customers different cargo sizes and vessel configurations to meet their specific needs.

The S.S. American Valor and the S.S. American Victory have the potential to be re-powered as motor vessels, converted to articulated tug barges, or have their forebodies mated with existing modern sterns; however, no immediate plan for these two vessels has been confirmed.

“Delivery of the vessels further solidifies our market position in the river-class segment where we see many opportunities”, said Gregg Ruhl, Chief Operating Officer at Algoma. “We are also working with our labour partners to develop a competitive labour structure for this segment.”

All four ships are former U.S. flag lakers that will be transferred to the Canadian registry for service in the Great Lakes - St. Lawrence trade. The Company’s purchase of these vessels and the on-going delivery of new builds combine to make the Company a leader in the marine industry. This acquisition illustrates Algoma’s innovative approach to the current market and highlights the potential for new growth in the Company.

this may not be a case of purchasing with intent to operate all ships, but purchase to negatively affect your competition. keeping ships out of competitors hands can be effective. Canadian fleets have done this in past to affect their competition.

Would they even have a need for the American Valor? She's too big for the Welland Canal and the St. Lawrence Seaway.

If suddenly ASC is willing to sell to Canadian fleets, it's really too bad about the Fortitude. She was in the best shape of the three steamers.

And I suspect she was just compact enough at 690' x 70' to support many of the river customers that the Canadian fleets service, while also being large enough to be useful in mainstream trading on the Canadian side.

Duluthian wrote:

James B wrote:Sounds like confirmed that Algoma has purchased the four American steamship boats.

Four? Which vessels are you talking about? I thought that only the Buffalo was sold.

Sounds like to me like Duluthian is talking about Cornelius, American Valor, American Victory and Buffalo. This is getting stranger by the moment!

James B wrote:Sounds like confirmed that Algoma has purchased the four American steamship boats.

Four? Which vessels are you talking about? I thought that only the Buffalo was sold.

Kinda sad to read, "...her US flag was at half staff..." in today's Boatnerd News.

Sounds like confirmed that Algoma has purchased the four American steamship boats.

Algoma Ship Repair has done work for LLT in the past.
Any coincidence that the MANISTEE was moved in Toledo last week? Next stop the scrap yard?
My money is on RAND and their new owners. As others have stated, Sarnia has been their go to port after previous purchases.
Just my 2 cents.

Talk is that both Algosteel and Algoma Olympic will be retired at the end of the season, and with the pending retirement of the older 650 footers, along with slow delivery of the newbuilds, Algoma would have insufficient tonnage. Hence the reason for the purchase of the Buffalo. We'll soon see if this is correct.

ashland69 wrote:

Guest wrote:Algoma Ship Repair truck parked by her today in Sarnia. I'd say that just about confirms things.

Yes, that really puts things in a different light. Why wouldn't buy the Buffalo when they're building new stuff? Strange!

From what I heard, their new boats (78’ beam) are too wide to reach some of the smaller ports that they serve. With the Algorail and Algoway heading for the scrap heap, they needed a replacement.

The bigger question to me is how they decide to register the Buffalo. It may be easier for them to keep a U.S. flag on her and contract with a an American operator, like CN does with Key Lakes.

Algoma Ship Repair does outside work. They don't just work on Algoma's own fleet.

Guest wrote:Algoma Ship Repair truck parked by her today in Sarnia. I'd say that just about confirms things.

Yes, that really puts things in a different light. Why wouldn't buy the Buffalo when they're building new stuff? Strange!

Algoma Ship Repair truck parked by her today in Sarnia. I'd say that just about confirms things.

ashland69 wrote:

Guest wrote:Is this an actual sale to a Canadian firm or a lease agreement? Is it possible to lease a US flagged vessel to a Canadian company? Could a Canadian company lease a US flagged vessel and place it under a US subsidiary?

I see nothing problematic with a Canadian company leasing from an American company; however, I do believe that the ship in question would remain under its original flag (if it was reflagged from U.S.to Canada the American authorities would not let it back into U.S. registry) and it would trade American port to American port and/or Canadian port to American port and visa versa. I do not believe it would trade between Canadian ports.

Doesn't this kinda lend credence to the theory of the Buffalo being the replacement for the Manistee since both are flagged American?

Wouldn't it solve the problem if it went to GRN?

Guest wrote:Is this an actual sale to a Canadian firm or a lease agreement? Is it possible to lease a US flagged vessel to a Canadian company? Could a Canadian company lease a US flagged vessel and place it under a US subsidiary?

I see nothing problematic with a Canadian company leasing from an American company; however, I do believe that the ship in question would remain under its original flag (if it was reflagged from U.S.to Canada the American authorities would not let it back into U.S. registry) and it would trade American port to American port and/or Canadian port to American port and visa versa. I do not believe it would trade between Canadian ports.