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Winter 2015 Bearfacts

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Winter 2015 Bearfacts ALGOMA CENTRAL CORPORATION NEWSLETTER ● WINTER 2015 President’s Message Company Announcements Seaway Max self-unloading bulk freighters became effective. These As part of the strategic planning contracts replace three of the review, the difficult decision was contracts with a Chinese shipyard made to sell the Real Estate that were cancelled earlier this year. portfolio. At this time I wish to thank our employees at Algoma Central On November 30th Algoma Properties for their hard work and announced we have contracts in dedication to the Corporation and place to build two 740 foot Seaway wish them every success wherever Max self-unloading bulk freighters to their future may take them. join the Company's Great Lakes – St. Lawrence Waterway dry-bulk One of the reasons for divesting the fleet. These new Equinox Class real estate portfolio was to focus the ships will be built by Jiangsu Corporation on its core Marine Yangzijiang Shipbuilding Co. Ltd. businesses. and will feature a standard rear boom. It has been nine months since I took To that end, in recent months the helm at ACC and what an Algoma has made a series of Equinox Class Deliveries experience it has been! announcements with respect to investments in the marine business The new orders bring the total of My arrival in Canada coincided with both domestically and Equinox Class vessels under the opening of the Welland Canal and internationally. construction to seven. In total, the end of a very long and Algoma expects to invest challenging winter for the domestic On November 10th we announced approximately $450 million in this vessels that continued to operate that our wholly owned subsidiary, phase of its fleet renewal program. through one of the worst winters in Algoma Shipping Ltd., has reached recent history. an agreement with Klaveness Following the delivery of the two Selfunloaders AS, a subsidiary of new Equinox Class 650 foot self- Spring finally arrived and we Klaveness Ship Holding AS (KSH) unloaders in early 2017, will be the welcomed a new vessel to our to purchase the ocean going scheduled delivery of the first 740 domestic fleet - the Algoma Integrity - panamax self-unloaders Balchen foot self-unloading bulk freighters in albeit only for two years until she will and Baldock. Marbulk Shipping early 2018. The balance of the ships find her permanent home in Algoma's Ltd., 50% owned by Algoma, also will be delivered by the end of 2018 international fleet. reached an agreement with KSH to bringing the total to 10 new Equinox acquire the handymax size self- vessels. During the summer months our unloader Balder. These vessel Executive team was busy working on purchases are subject to technical With the addition of these new ship a new strategic plan for the due diligence. Upon entering our orders, the Company is reviewing its Corporation that was reviewed and fleet the vessels will become the fleet plan and considering the approved by the Board of Directors in Algoma Vision and Algoma Value retirement of certain older vessels. September. We will be respectively. The Balder will become communicating the Company's new the Venture. For more information regarding the strategic vision to our Captains and new Equinox Class refer to the Fleet Chief Engineers during our Annual On November 25th we announced Renewal Report article on page 17. Meetings in February and to the wider that the contracts with Uljanik d.d. of fleet during the 2016 fit out meetings. Croatia to build three 740 foot President’s Message Continued Financial Results down 10% compared to last for your efforts in ensuring that year, with most of this decrease we retain our hard-won On November 4th we occurring in the third quarter. reputation for running a safe announced our results for the Net earnings and earnings per and reliable fleet under these third quarter of 2015. This year share were also down circumstances. has been a challenging one for compared to the prior year. the domestic shipping business While there has been and for Algoma. It began with a It is becoming clear that the significant amount of forward planning, the daily operations long and tough winter; however, domestic market is facing a challenging environment and of a marine business cannot unlike 2014 when we were ever be ignored. that this situation is likely to caught by surprise by the delayed opening of the season, extend into 2016 and perhaps As the outlook for 2016 is for 2015 we planned our ship fit beyond. As we plan for 2016 indicating that it will be a -outs in anticipation of delays. we are, as always, focused on challenging year, we will all be While we avoided the cost ensuring that we are the carrier tasked with ensuring that as a team we are working together associated with operating ships of choice for our customers. as efficiently and effectively as We are also focusing on during weather delays, the possible while continuing to slower start to the season operating our fleet in the most serve our customers resulted in fewer revenue days efficient manner as we wait for exceptionally and safely. than is usual for April. As we the delivery of the seven new moved into the late summer domestic dry-bulk vessels In closing, I would like to wish all employees, retirees and and fall, shipping volumes in currently on order. As a result of the delays and the eventual their families the very best for agriculture and grains slowed the Holiday Season and a cancellation of our orders at noticeably, more than offsetting Happy New Year. strength in other commodities. Nantong Mingde, we have operated several of our current As a result of these conditions, vessels longer than we had Ken our nine month revenues were planned. You are commended WINNER OF THE CHRISTMAS CARD CONTEST Artwork created by Donovin, 10 year old son of Crewing Coordinator Eva Ingribelli. 2 Algoma Central Corporation New Hires Georges Cote joined Algoma Bryan Palazola joined Algoma Pierre-Luc Caron joined on a full-time basis as Captain Shipping Ltd. on a full-time Algoma on a full-time basis as on June 29th. basis as Senior Accountant on Chief Engineer on August 1st. July 20th. Kelsey Luchyshyn joined Jamie Regular joined Algoma Brittney Gillard joined Algoma Algoma on a full-time basis in on a full-time basis as Crewing on a full-time basis as Crewing the HR department on August Coordinator on August 10th. Coordinator on August 10th. 4th. Promotions Gregg Ruhl joined Algoma on Charles Bungard joined On September 4th, Peter a full-time basis as Senior V.P. Algoma on a full-time basis as Norman was promoted to Engineering on October 1st. Operations Manager on Training Captain. December 18th. 3 Algoma Central Corporation Retirements Second Mate Robert Third Mate (David) Chris After 37 years of service, Donaldson retired on June Bennett retired on August 1st. Captain John Chaffey retired 24th after 43 years of service. Chris had over 4 years of on October 1st. John sailed Robert sailed within the dry- service and most recently onboard numerous vessels bulk fleet. sailed onboard the Algoma within the tanker fleet. Harvester. On July 1st, after 31 years of GP Watchkeeper Brad service, Ralph Foggoa retired. After 29 years of service, Fougere retired on October 1st Ralph was a GP Watchkeeper Llewellyn Bates retired on after 39 years of service. Brad and most recently sailed August 1st. Llew was a sailed onboard the Algosar. onboard the Algoscotia. Licensed Crane Operator at Algoma Ship Repair. Mary McNutt retired on July After 28 years of service, October 7th after 27 years of Michel Lafrance retired on July On October 1st, after 36 years service. Mary most recently 16th. Michel was an Ordinary of service, Third Engineer sailed onboard the Stephen B. Seaman sailing onboard the David Evely retired. David Roman as 2nd Cook. Tim S. Dool. sailed onboard the Algoscotia. Billing Clerk Helen Miller GP Watchkeeper Roger Third Engineer Donald retired on September 1st after Dufour retired on July 22th Anderson retired on October 21 years of service. after 17 years of service. Roger 1st after 36 years of service. sailed onboard the Algosea. Donald sailed onboard the After 17 years of service, Algonova. Robert Tremblay retired on December 4th. Robert was a GP Watchkeeper. We wish all those who have retired with Algoma a healthy and happy retirement and appreciate the many years of dedicated service they have provided! Final Sailings Weddings It is with our deepest sympathy that we announce the passing of the following employees. They will be greatly missed. Captain Louis Drolet passed away on June 9th. Deck Foreman Patrick Ricketts passed away on July 17th. Dayman Michael Dunphy passed away on August 30th. Lead Hand of ASR Tim Bridge passed away on October 26th. Head Cargo Maintenance Alan Robertson married Cassandra on May 30th in Goderich. The couple posed Third Engineer Peter Witty passed away in front of an Algoma vessel with their wedding party. on November 9th. Retired Truck Driver of ASR Tony Caperchione passed away on November 24th. 4 Algoma Central Corporation Births Third Engineer Alexandre Captain Dennis Taylor is proud to announce the birth of his Mayer is proud to announce grandsons Taylor (L) who was born on August 15th and Dennis (R) the birth of his daughter Rose who was born on September 22nd. who was born on May 19th. Ordinary Seaman Peter Cole is Repairman at ASR Terry Purchasing Supervisor Dalia proud to announce the birth of Benner Junior and his wife Dief and her husband Peter are his grandchildren Paige & Kayla are proud to announce proud to announce the birth of Owen who were born on the birth of their son Dylan who their son Solomon who was October 16th.
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