MONTREAL, Quebec—A new contract for Fednav Ltd means more than just the promise of ongoing work. It also means it’s time to buy a new ship.
Fednav signed a deal with mining company Canadian Royalties Inc, a division of Jien Canada Mining Ltd (which is owned by Jilin Jien Nickel Industry Co Ltd of China). The long-term arrangement will see the dry bulk shipping company transport nickel and copper concentrates from Canadian Royalties’ Nunavik Nickel Project in northern Quebec to customers in Europe. It will also deliver European-sourced mining supplies and equipment to Quebec.
Fednav plans to move the concentrated ore with a new addition to its fleet. The company has placed an order for a Polar Class 4 ice-breaking bulk carrier with a design deadweight of 25,000 tonnes.
The vessel will be built by Sumitomo Corp and Universal Shipbuilding Corp in Japan, and will be classed by Det Norske Veritas. It is expected to be ready in December 2013.
The new ship will be the third ice-breaking commercial vessel in Fednav’s fleet, joining the MV Arctic and the MV Umiak I.