Algoma Expands Great Lakes Fleet in Major Canadian Shipping Deal

ST. CATHARINES, Ontario – February 27, 2026 – Algoma Central Corporation, a cornerstone of Canadian marine transport, has announced a definitive agreement to acquire the Canadian operations of Mainstay Maritime Inc., a move that significantly consolidates the dry-bulk shipping landscape on the Great Lakes. The deal includes Lower Lakes Towing Ltd. and its associated companies, along with a fleet of six Canadian-flagged vessels.

This strategic acquisition, expected to close in the first quarter of 2026 pending customary conditions, will see Algoma absorb the vessels Kaministiqua, Manitoulin, Robert S. Pierson, Saginaw, Michipicoten, and Valo. For Mainstay Maritime, the divestiture marks a decisive pivot, allowing the U.S.-based operator to sharpen its focus and reinvest exclusively in its extensive Jones Act-compliant fleet serving American domestic ports.

Algoma Cements Dominance on the Great Lakes

With this transaction, Algoma Central Corporation (TSX: ALC) reinforces its position as the preeminent operator in the Great Lakes–St. Lawrence Seaway system. Already managing the largest Canadian-flagged fleet of dry and liquid bulk carriers, the addition of the six Lower Lakes vessels will enhance both its capacity and operational flexibility. Lower Lakes Towing, established in 1994, carved out a formidable reputation as a market leader, particularly in the "River Class" segment.

These River Class vessels, typically smaller than their larger counterparts, are crucial for accessing shallower drafts and more restricted ports across the Great Lakes, serving industries from agriculture to construction. The acquired ships, with capacities ranging from roughly 19,600 to over 33,800 tons, complement Algoma's diverse fleet and expand its reach into niche markets that are inaccessible to larger carriers. This acquisition aligns with Algoma’s sustained growth strategy, which has seen its fleet expand significantly over the past decade and includes an ongoing newbuild program for its fuel-efficient "Equinox-class" vessels.

“Algoma is pleased to grow our Canadian dry-bulk fleet with the addition of Lower Lakes’ vessels and experienced team,” said Gregg Ruhl, President & CEO at Algoma. “With a long history on the Great Lakes, we understand what it takes to deliver safe, dependable marine transportation and this acquisition enhances our ability to provide exceptional marine transportation services to our customers across the Great Lakes – St. Lawrence Seaway.”

Mainstay's Strategic Pivot to the U.S. Jones Act

While Algoma expands its Canadian footprint, Mainstay Maritime is charting a new course focused entirely south of the border. The sale of its Canadian assets is a calculated move to concentrate its resources on the highly specialized and regulated U.S. Jones Act market. Mainstay, formerly known as Rand Logistics, Inc., will now dedicate its efforts to its remaining fleet of 26 U.S.-flagged vessels.

Greg Binion, CEO of Mainstay Maritime, described the transaction as a “natural step in Mainstay’s evolution,” which will allow the company to “sharpen our focus on the U.S. Jones Act market, increase our reinvestment in our U.S. Flagged fleet, and position the Company to meet the growing needs of our customers.”

The Jones Act, formally the Merchant Marine Act of 1920, mandates that all goods transported by water between U.S. ports must be carried on ships that are built, owned, and operated by United States citizens. This protectionist law creates a unique, insulated market with high barriers to entry. By doubling down on this segment, Mainstay aims to leverage its significant experience, which includes its 2020 acquisition of American Steamship Company, to become an even more dominant player in U.S. domestic shipping.

This strategy is not without its challenges. The U.S. Laker fleet is, on average, significantly older than its Canadian counterpart, and operating within the Jones Act often entails higher costs. However, by divesting its Canadian arm, Mainstay frees up capital to potentially modernize its fleet and capitalize on the steady demand for reliable domestic shipping services protected from foreign competition.

Ripple Effects Across Great Lakes Commerce

The deal sends ripples across the entire Great Lakes industrial ecosystem. For customers in the steel, mining, and agricultural sectors, the consolidation of Canadian dry-bulk services under Algoma could lead to more integrated and potentially more efficient logistics. The integration of Lower Lakes’ specialized vessels gives Algoma a more comprehensive toolkit to serve a wider array of ports and customer needs.

Operationally, the acquisition involves integrating not just six vessels but also the more than 270 skilled employees of Lower Lakes, who primarily work on the ships and out of Port Dover, Ontario. Algoma has signaled its intent to welcome the team, with Ruhl emphasizing that Mainstay’s “commitment to safety, reliability, and high-quality service aligns with our operational values.”

While the financial terms of the deal were not made public, Algoma appears well-positioned for the purchase. The company’s stock has been trading near its 52-week high, reflecting strong investor confidence, and it boasts a stable history of dividend payments. The long closing period, stretching into early 2026, provides ample time for regulatory processes, including any potential review by Canada's Competition Bureau, which scrutinizes major mergers to prevent a substantial lessening of competition.

This transaction reshapes the competitive dynamics of North America's inland seas, setting two of its most significant shipping lines on distinct but deliberate courses for the future.