Algoma finds itself being a young enterprising company as it reaches a huge milestone

Gregg Ruhl, Algoma’s president and CEO, was thrilled to slice birthday cake in August with employees, their parents, children, and grandchildren at H.H. Knoll Lakeview Park in Port Colborne, Ontario. “I’m so proud to be part of a Canadian institution that has stood the test of time and continues to invest in the future,” says Ruhl, who initially joined the company as a senior vice-president nine years ago.

Originally incorporated as the Algoma Central Railway in 1899, with steel, paper, real-estate properties, trucking, and other enterprises along the way, the company has always had marine operations, originally with passenger services. Algoma placed its primary focus on marine transportation starting in the 1990s.

Dave Belisle, Algoma’s Director of Vessel Performance, is amazed at the fleet’s current expansion. “We started the year with 18 vessels under construction, had seven delivered, and placed orders for another three so that we have 14 more new ships on the way,” he says.

“Algoma has changed over the years, but our bear has always been there as a symbol of our strength and the pride we have in what we do,” Hannah Bowlby, Algoma’s corporate communications manager, says.

Built to a new design, the initial Algoma Equinox was a game-changer when it entered service in the Great Lakes and Seaway in December 2013. 

The performance of the 11 Equinox vessels is now evaluated on an ongoing basis to ensure all the ships are functioning optimally. “That’s not something we could do in the past with all different types of ships,” Belisle says. “Or without the monitoring equipment we now have installed.”

Mira Hube, Algoma’s director, Environment, agrees. “We’ve taken steps over the last few years to position ourselves to obtain better data with the installation of various monitoring systems” she notes.

The vessels serve diverse sectors that include steel, aggregates, cement, salt, agricultural and petroleum products.

On the international front, Algoma is building new tanker vessels with partner FureTank of Sweden. “Our 50/50 FureBear joint venture is exciting because those dual-fuel ice class 1A product tankers are getting top ranking in the carbon intensity index (CII) ratings,” Belisle says.

Algoma also has a 50% interest in joint ventures that include eight vessels forming part of the world’s largest pool of self-unloaders. “Our self-unloaders revolutionized the business by making it possible to deliver goods where there might not be the required infrastructure otherwise,” Belisle says.

The company is surprisingly young when it comes to its workforce. “Almost half – 48% – of our shoreside employees have been here for five years or less,” Bowlby shares, adding that retirements and an expanding workforce are key factors.

Employee training and retention have been prioritized. “We conduct an employee engagement survey every other year and ask employees where they think the company is doing well and where things could be improved,” Bowlby relates. “The Bear Facts monthly newsletter has been around for 50 years to relate what’s happening with employees and the industry, while Strive Together is a more recent monthly newsletter to share best safety practices and learnings so our crews stay aware of what is happening across our fleets and continually improve.”

Algoma has been undergoing various changes as it navigates the course towards decarbonization. Although marine transportation is already the greenest mode, Algoma successfully trialed biofuel on five vessels in 2023, further decarbonizing its operations by more than 70% when operating B100.

“We’re just so fortunate to have an organization with a lot of experience, along with capabilities and a strong financial condition that make us able to take advantage of current green opportunities and to study other feasible solutions under the current leadership,” Belisle says.

Belisle expects one or two low carbon energy sources to become dominant in the Great Lakes and St. Lawrence because of the market economies of scale, infrastructure availability, and set itineraries.

Algoma obtained $600,000 in funding from Transport Canada’s Green Shipping Corridor Program (GSCP) earlier this year (in 2024) to conduct feasibility studies into biofuel, shore power, and wind-assisted propulsion, respectively.

Ruhl says additional research funding is imperative to avoid spending money on concepts that haven’t been proven.

“These studies are the first small steps to figuring out what the best solutions are in terms of the maritime industry’s decarbonization for the Great Lakes and St. Lawrence specifically,” he says. “Solving the carbon issue in Canada is a societal problem that shouldn’t be shouldered by our industry alone, especially given that it’s already the most sustainable mode of transportation.”

Belisle says the ability to collect and assess data puts everything into a new light.

While Algoma is investigating the feasibility of methanol and slow-speed engines, some of its competitors are looking more closely at electric batteries or electric generators that batteries would eventually replace. “It will take some time and effort to figure out what’s going to work best for the next 30 years and then come up with a robust plan we can all rally around to make happen,” Ruhl emphasizes.

Hube notes that the Great Lakes–St. Lawrence maritime industry has a history of coalescing around major challenges as the best way to pool resources. For example, Algoma is a founding participant in the Green Marine environmental certification program that was originally created 17 years ago to jointly deal with pressing environmental issues in the region.

Belisle credits the company’s bi-annual sustainability report for also building employee awareness. “People here talk about how proud they are of their company after the report comes out,” he says.

Ruhl sees the Green Shipping Corridor Network in the Great Lakes and St. Lawrence as an opportunity for Algoma, Canada Steamship Lines, and others to showcase their unprecedented generational commitment to carbon-friendly maritime transportation.

With the Seaway system continuing to operate at only half capacity, the potential for Algoma to play a bigger role in Canada’s logistical supply chain, including a shift from other modes, is huge, according to Belisle. “The climate crisis is highlighting marine transportation’s efficiencies,” he says.

All feasible ideas are on the table for the company’s next big steps in terms of sustainability. “We’ve asked our employees for their suggestions for our strategic plan through 2030,” Hube notes. “The Operations and Technical teams have also encouraged shipboard employees to submit their ideas and suggestions for our future new builds.”

The company has also hired a dedicated training manager who can identify and respond to new or evolving training needs as it pertains to new fuels, safety, and emerging technologies.

The MVB – Most Valuable Bear – program encourages the employees to nominate a shipside or shoreside colleague for notable efforts.

“We’re fully aware that our most valuable resource is always our people,” Ruhl says.