Canada’s Algoma Central Corp has been awarded a $29.1m refund for the fourth and final shipbuilding contract it has been disputing with Nantong Mingde Heavy Industries.
The Canadian carrier was awarded its refund claim in July at an arbitration tribunal in London.
“The collection of this final refund guarantee brings to an end the extended process related to the cancellation of the four Mingde shipbuilding contracts,” Peter Winkley, Algoma’s CFO and vice-president of finance, said in a statement.
Including the latest award, Algoma has received $82.5m in refund guarantees for the four cancellations, which Winkley said would be “invested in active shipbuilding contracts now underway in Croatia and China”.
Algoma ordered six Equinox-class bulk carriers at Nantong Mingde in 2010 to replace aging ships in its domestic fleet. Only two of the vessels were delivered before the Chinese shipyard declared bankruptcy in August 2015.
Algoma cancelled the four remaining contracts and has received tribunal decisions in its favour for all four of the cancellations. It has since signed contracts with shipyards in Croatia and another builder in China to build the other five Equinoxes.
The Canadian company operates a fleet of dry and bulk carriers on the Great Lakes and the St Lawrence Waterway, plus has some interest in ocean-going dry bulk carriers.