Ship for Canadian company launched at Rijeka shipyard

A 225-metre-long ship for the transport of bulk cargo, commissioned by Canada's Algoma Central Corporation, was launched at Rijeka's "3.maj" shipyard, with Prime Minister Andrej Plenković and numerous citizens attending the event.

The Algoma Endeavour, the longest ship launched at the Rijeka shipyard, is 23.8 metres wide and has a carrying capacity of 29,300 tonnes and it will sail in the Canadian Great Lakes. After the disintegration of the Uljanik Group, this is the second vessel built by the Rijeka shipyard for the Canadian client (the first one was the Algoma Intrepid).

Prime Minister Plenković said at the launch ceremony that this was yet another successful project implemented by the "3. maj" shipyard with strong and sincere support from the government.

The price of the ship is 31.5 million Canadian dollars and 23.5 million euros, he said, adding that the government had demonstrated its trust in the project by providing loan collateral.

"The government's position was that it should support any solution that would create conditions for the launching of production and completion of vessels under construction as well as reduce losses, which were incurred frequently before," he said.  

He recalled that in 2019 the government decided to settle the debt of the Croatian shipyards to banks in the amount of HRK 4.5 billion (€600 million) for vessels that had not been completed.

"We decided to... launch shipbuilding in a sustainable and profitable way, based on partnership. The government understood what shipbuilding at '3. maj' means to Rijeka identity-wise," said the PM.

Since then, four vessels have been launched at the shipyard, including the state-of-the-art Scenic Eclipse polar cruise ship, built in partnership with Scenic Group and MKM Yachts, he said.

"We are doing this because we take care of the Croatian industry, shipbuilding, the history of shipbuilding in Croatia, tradition and identity. Without shipbuilding, Rijeka would not be what it is," he said.

The director of the "3. maj" shipyard, Edi Kučan, thanked the government for its support, noting that the shipyard was building ships for the world market.

Shipbuilding is an important domestic industry, ready to take on the most challenging engineering projects globally, Kučan said.

The Canadian client's representative, Robert Houston, too, expressed satisfaction with the government's cooperation and support for the project.

The vessel launched today was part of the Uljanik Group's insolvency estate and the contract for its construction was renewed on several occasions. In May 2022, "3. maj" and Algoma signed a contract on its completion.

In August 2019 the government provided loan collateral for the shipyard to prepare for and launch production and finish the vessels that had been under construction in order to reduce losses for the state, and it gave guarantees for the Algoma Endeavour in July 2022 and October 2023.

Answering reporters' questions, Plenković said that a number of potential investors were interested in the Pula-based Uljanik shipyard and the "3. maj" shipyard, noting that the government and the competent ministries were interested in the economic and financial sustainability of the shipyards.

Text: Hina



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