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Croatian shipyard delivers vessel to Algoma Central Corporation after a long delay

ZAGREB (Croatia) – Croatia’s 3. Maj shipyard said today that it delivered a self-unloading bulk carrier to Canadian marine transportation services provider Algoma Central Corporation, reported SeeNews.

The vessel is 198.3 metres long, 23.8 metres wide, can carry up to 31,132 tonnes of cargo, and has an engine output of 7,100 kW, 3. Maj said in a filing to the Zagreb stock exchange.

Earlier this month, the Croatian government provided the troubled 3. Maj with state guarantees for a 26 million euro ($30.5 million) loan to help the troubled shipyard complete the vessel ordered by Algoma.

The vessel provisionally named Hull 733 has been moored at the 3. Maj shipyard in Rijeka since 2017 when Algoma cancelled the contract for its construction after the shipyard entered an extended period of financial troubles.

Back in 2017, Algoma cancelled the contract for Hull 733 along with the contracts for three Seaway-max self-unloading vessels in 2018 as a result of the financial problems at the shipyard.

3 Maj is part of troubled Croatian shipbuilding group Uljanik. The group includes another major shipyard in Croatia, Uljanik Shipyard, along with smaller subsidiaries.

In May 2019, a Croatian court launched bankruptcy proceedings against Uljanik Shipyard and the Uljanik Group at the request of the government’s financial agency, citing the companies’ overdue debt.

3 Maj avoided the launch of bankruptcy proceedings in September 2019 after the government decided to issue guarantees for a 150 million kuna loan from state-owned development bank HBOR to the shipbuilding company. (Photo Goran Kovacic)