CWB Strongfield & Eqinox Updates

[J Kerwin]

Post this on the wrong link before. Sorry.
On July 27, the young gent reporting on the Algoma Strongfield blog site says that they stopped by the Algoma Conveyor's building slip and she is coming along nicely. It sounds to me like some kind of agreement has been met and the construction is continuing on the Conveyor.

[Denny]

That is exactly what I was referring to shipwatcher1 in my earlier post as far as the shipyard where the Latimer and Algoma Mariner were built. I am 100% certain it is called the Chengxi Shipyard and it is located somewhere in China.

[Shipwatcher1]

I wonder if they will use the yard that build the Latimer and Algoma Mariner

[Denny]

Thanks Algowest for all of that great information and updates as you are good with that! In my opinion and I don't want to upset and rock the boat here just my thoughts only and opinions on this subject. Algoma even though they got the four Equinox bulkers from Nantong Mingde yard, should have went instead with the one that built the CSL Trillium self-unloaders such as Chengxi I believe it is called? I still believe and say with 100% satisfaction that this yard is a proven winner! Just look at how quickly they built and then delivered the CSL Trillium Self-unloaders for CSL in a timely manner without delays! Also, look at how they rebuilt the Algobay later the Radcliffe R. Latimer for Algoma and returned her back to Algoma in a timely fashion. Also, after the Algoport unfortunately sank in the Pacific enroute to getting a new cargo hold put on her, look at how quickly Chengxi shipyard built the Algoma Mariner and returned her to Algoma. Again my thoughts and opinions only but, at least with the Chengxi yard just look at how quickly and with no delays they seem to build ships and deliver them on time to their customers. Maybe Algoma could go with Chengxi or Yangfan for the continuation of building the Equinox self-unloaders. Again it is just my thoughts and opinions only here and that is all it is at that.

[algowest]

In 2nd quarter 2015 Operating Results Release, Algoma
"concluded it is unlikely the restructuring process is going to succeed and therefore advised the Shipyard it no longer intended to take delivery of the four vessels. " Instead of 4 Equinox self-unloaders, Algoma intends to build 5 now. This was also mentioned:
"the Company is currently in negotiation with shipyards for a total a five Equinox Class 740' self-unloaders in place of the four cancelled Mingde-built vessels. Management expects the two 650' Equinox self-unloaders to be delivered in 2017 and is targeting late 2017 through 2018 for delivery of the five 740' Equinox self-unloaders."

Seeing that hull construction appeared complete on Algoma Conveyor (per picture from 2015 Annual Meeting slide), I wonder if there is potential to purchase these components and transfer them to another overseas yard for assembly/completion.

[old sailer]

Anyone know what this has cost Algoma.

[Denny]

I have to echo Roger's comments and many as well regarding the status of the CWB Strongfield? Yes or No, as far as Has she been built, constructed and completed from Nantong? If she has been built and completed there, then when is she expected to sail and depart from China to Canada? Sorry for so many questions here just curious to finding out more on her. Also, I have to echo many other comments as well regarding the situation and the status of the Manitoulin of Lower Lakes Towing also being built in China. Anyone hear or know what is going on with her and when she will be completed and expected to sail from China to Canada? If there is anyone that knows anything or has information I would greatly appreciate it. Thanks in advance.

[Mr Link]

According to a posting on the investor relations page of Sainty Marine, the contract that was cancelled for lack of delivery by March 31,2015 was for hull MD-153. I believe that was going to be the first self-unloader, the Algoma Conveyor.

[BigRiver]

So is this the CWB Strongfield that has been canceled? Or is it the Algoma Sault?

[Mr Link]

Algoma's investors know. The situation has been discussed in every recent financial report. Here is the one from the first quarter of 2015. http://www.algonet.com/Portals/0/Skins/ ... 5%20Q1.pdf See pages 10 and 11. At that time they were still hopeful that some work may occur at the shipyard but it appears they also had means to minimize their loss if nothing was completed. They also mention a pending contract to build two Equinox class ships at a shipyard in Croatia.

[john12]

So has Algoma switched yards? Guess that means they wont be ready for delivery for the third quarter of 2015 like promised.
And does anyone know the status on the Manitoulin???

[Guest 101010]

Could also be the reason that Algoma hasn't posted a "Bear Facts" this year as well. They went through similar issues when they were trying to get tankers built a few years ago.

[Denny]

I agree with you wannabfree as it does seem odd that most of us here have known about the Nantong bankruptcy situation since it happened in December 2014 yet as you mentioned, Algoma seems to be keeping it a secret from most everyone in the world and has not stepped forward and made this news official yet! I still swear by my earlier comments and opinions, "Would Algoma now had been better off choosing another shipyard to build the Equinox Class ships versus the Nantong Shipyard?" As I mentioned earlier, the Chengxi Shipyard in China has a good reputation of building and re-building vessels and delivering them to their customers in a timely manner without too many delays. I wonder now if Algoma is wishing they would have found a better shipyard to build their ships in now? Again, this is just my thoughts and opinions only.

[wannabfree]

As troubling as this news may be, I am far more concerned with just how well "One of Canada's Best Managed Companies" is able to stifle the press, or at best, simply not come forward with this news. The fact that this information has had to be presented to us anonymously through this forum, should give us all cause to worry.
To anyone following these events since the China news agencies announced that Nantong Mingde Heavy Industry Co. Ltd, was forced into bankruptcy Dec. 2014, the only information available was through the Chinese media. There have certainly been enough rumors circulating throughout merchant marine since before ice-out, but I simply believe that Algoma could be a little more forthcoming. This trend scares me.

[Denny]

So in reading this article, I take it then that Algoma has ended up by now cancelling its order on all and future Equinox Class vessels at least that were due to be built at the Nantong Heavy Industries Shipyard in China? Just wonder then will Algoma try to find another shipyard in China to build the remaining Equinox Class and ships that were supposed to be built for them? Just my opinion only here however, I think they would've been better off having them built at the Chengxi Shipyard where CSL had their self-unloading Trillium Class vessels at least built. Algoma had the Algobay rebuilt here and later they built the Algoma Mariner as well. My point here is that with the Chengxi Shipyard, they seem to do a good job and have a good reputation for shipbuilding and on-time delivery of new builds. This is only my opinion here and nothing further is all.

[Guest]

Shipowner cancels Handysize bulker order from Sainty Marine

Dexter Yan
10 June 2015

Shenzhen-listed Sainty Marine's under-construction newbuild at Nantong Mingde Heavy Industry (NMHI) has been abandoned by its shipowner, because of Sainty Marine's failure to deliver the newbuild as scheduled.

Algoma Central is the shipowner, according to IHS Maritime Sea-web.com.

The newbuild - a 38,000 dwt handysize bulker - could not be delivered as scheduled on 31 March, a stock filing of Sainty Marine said on 10 June.

Algoma Central had informed the company via email on 9 June that it had decided to abandon the newbuild with immediate effect in accordance with the shipbuilding contract signed with Sainty Marine.

Related news: Court seizes more Sainty Marine assets

The shipowner reserved the right to seek compensation from Sainty Marine over the breach of contract, which means that Sainty Marine would have to refund the instalments for shipbuilding costs and relevant interest.

Sainty Marine has been in co-operation with NMHI to sell newbuilds by NMHI since 2013. The company is also seeking to take over NMHI as it has provided funds for NMHI to finance a series of newbuilds over the past years. In the end of 2014, NMHI was unable to repay its funds, as Sainty Marine had predicted.

Additionally, Sainty Marine warned that two more Ultramaxes built by its own shipyard could not be delivered to Precious Shipping. The two newbuilds were scheduled for delivery on 31 May. In May, Precious Shipping refused to take delivery of the first two same-class vessels from Sainty Marine.

To contact the author of this article, email [email protected]

[garbear]

What is the latest news on the CWB Strongfield along with any of the new Equinox Class self-unloading vessels that were supposed to be built at the Nantong Mingde Heavy Industries Shipyard over in China? I know and read about the shipyard bankruptcy in late 2014 but, have they finished any work on any of the vessels that were supposed to be for the CWB or Algoma? Any news, updates and information is appreciated. Thanks.

Along the same lines. What is the latest on Lower Lakes Towing's Manitoulin? Thought LLT's contract they were doing the conversion for starts in August. Has the Manitoulin left China yet?

[Denny]

What is the latest news on the CWB Strongfield along with any of the new Equinox Class self-unloading vessels that were supposed to be built at the Nantong Mingde Heavy Industries Shipyard over in China? I know and read about the shipyard bankruptcy in late 2014 but, have they finished any work on any of the vessels that were supposed to be for the CWB or Algoma? Any news, updates and information is appreciated. Thanks.