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Although Algoma Central Corp. had a modest start more than 100 years ago, it has grown substantially ever since, Executive Vice President and CFO Greg Wight says. He explains that the St. Catharines, Ontario, Canada-based firm is now “a diversified water-transportation company” that is developing a worldwide presence.

The company was originally incorporated in 1899 as Algoma Central Railway. Although the company had a railway and real estate portfolio, “We weren’t a significant part of the Canadian industry [for many years],” he admits.

That status changed in 1959, when Algoma’s management chose to evolve it “into more of a marine-based company,” Wight explains. “From the early ‘60s right through the early ‘90s, the company grew from having a couple old ships to having the most modern, largest fleet on the Great Lakes.”

An instrumental figure in this transition was former CEO Peter Crestwell, who once managed Algoma’s marine division. “[Crestwell] had a vision about expanding out of the lakes and using our strengths to become more international,” Wight says.

Today, Algoma has a fleet of more than 40 vessels and multiple business units in the fields of domestic and ocean shipping, real estate and ship repair. “Most of our customers are large, multinational companies,” Wight says, adding that its clients include aggregate producer Lafarge and Imperial Oil Ltd., a Canadian subsidiary of ExxonMobil.

Making Changes
Wight joined Algoma in 1980 and has remained there ever since. “It’s just been a great company to work for,” he declares. “We’re always doing something new and exciting.”

Something new for Algoma will be the expansion of its fleet. In 2007, the company ordered nine new vessels that are currently under construction. “We expect the first two [to arrive] in mid-2008,” Wight says, adding that five more are now being constructed in shipyards in China.

This March, the company also announced the acquisition of three bulk carriers from Viken Shipping AS, based in Bergen, Norway. The ships, which were built in 1986 and 1987, feature four cranes and a carrying capacity of 34,000 tons each.

In July, Algoma will also commence operations on Hanseatic Tankers, a joint venture it formed with the Bernhard Schulte Group, Sloman Neptune Schiffahrts-Aktiengesellschaft and Intrepid Shipping LLC. Together, the firms will operate a fleet of 24 product and chemical tankers, Wight says.

According to the Bernhard Schulte Group, Hanseatic Tankers will allow the companies to provide “first-class service” to their clients. “By virtue of its large, homogenous fleet, the venture will offer increased flexibility and reliability, and the ability to conclude volume contracts,” it explains.

In Good Shape
This year, Wight will undergo a change in his role at Algoma. After the company’s annual meeting on April 30, President and CEO Tim S. Dool will step down, and Wight will take his place.

Dool will remain with Algoma as a director and advisor to its board and management. A 31-year veteran of Algoma, Dool was its president and CEO for seven years. During those seven years, Algoma says its revenues rose by 51 percent, while its net earnings grew by 60 percent and its capital assets grew by 23 percent.

Wight adds that he finds the promotion gratifying, after his many years with the company. “I’m pretty excited about it,” he says. “I’m being handed a company that’s [in] pretty good shape.”

Moving Forward
Algoma faces new challenges every day, Wight says. One that the company is now coping with is the high demand for shipyard capacity worldwide. “It makes it difficult to plan for expansion,” he says.

Algoma is also working to reduce the size of its environmental footprint. One initiative involves bringing its domestic tanker fleet into accord with ISO 14001, a standard for environmental management systems.

Despite these challenges, “We’re very, very optimistic [about] our future,” according to Wight.

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