The keel was laid for Collingwood Shipyard's hull # 215 on August 16, 1977. Hull # 215, a new self-unloading bulk carrier, was built in 1978 for Algoma Central Corp., Sault Ste. Marie, ON. The new carrier was launched on June 19, 1978 and was christened Algobay by Mrs. Cedric Ritchie, wife of the chairman and president of the Bank Of Nova Scotia on that date at a ceremony at the shipyard. The Algobay was built to a "Nova Scotia Class" classification allowing for the operation of the vessel along the eastern seaboard. The new vessel had an advanced "V" shaped bow to the 24' (7.32m) mark for working in ice, higher horsepower diesels and a greater degree of hull strengthening. The self-unloader was the widest vessel built to date at the shipyard. The Algobay's name was derived from the common corporate naming prefix "Algo" and "bay" honoring the various bays of the Great Lakes but no one in particular.