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A NEW AGE OF ShippiNG Daewoo Shipbuilding and Engineering Company will supply the design and equipment package for the TOTE ships to GD-NASSCO

TOTE’s historic order could push other operators to invest in dual fuel technology


hese vessels mark a new age of shipping using the best technology in the world.” That’s how Anthony Chiarello, TOTE President and CEO, describes the American operator’s commitment to build at least two and as many as five 3,100-TEU dual fuel containerships with General Dynamics NASSCO for service in the company’s Puerto Rico trade. The options for the three sister ships are exercisable this year. The order not only represents a capital investment of more than $350 million, but also a world first—these containerships will be the first built that can run exclusively on Liquefied Natural Gas (LNG)—and a historical moment for U.S. shipbuilding. The new boxships would be a major leap forward in technology and welcome additions to the Puerto Rico trade, which features some aging Jones Act tonnage. TOTE, Inc., Princeton, NJ, is the managing partner and has a 90% equity interest in Sea Star Line (SSL). SSL operates three 30-plus year-old combination Rollon/Roll-off- Lift-on/Lift-off steamships in the trade, providing regularly scheduled weekly service from Philadelphia, Jacksonville and Port Everglades, FL,

to and from San Juan, Puerto Rico, and provides connecting service to St. Thomas, St. Croix and Tortola. The U.S.-flag fleet includes the 1974-built SS El Faro, the 1976-built SS El Yunque and 1974built El Morro. All of the vessels have undergone at least two major refits, have 600 FEU capacity and service speeds of 22 knots. The new TOTE boxships will be designed to accommodate five times more 53-foot containers than the Ponce Class ships. The first 3,100-TEU boxship wil be delivered by NASSCO, San Diego, CA, in the fourth quarter of 2015 and the second in the first quarter of 2016. TOTE says the newbuilds will be the “most environmentally friendly containerships in the world,” with CO2 emissions per-container that are 71% less than the vessels now in the Puerto Rican trade. It says Particulate Matter will be reduced by 99%, SOx, 98% and NOx, 91%. The newbuild contract comes in the wake of TOTE’s previous commitment in 2012 to convert its two 2003-built 839 ft ORCA Class Roll-On/Roll-Off vessels, M.V. Midnight Sun and M.V. North Star, with dual fuel engines. The contract for the conversion of the two vessels,

which operate between Tacoma, WA, and Anchorage, AK, has yet to be awarded, but initial estimates expect the engineering, design and installation of the engine kits and construction of the LNG plants to convert the two ships could cost $84 million and take up to five years. The work will be performed while the ships remain in service. What’s driving TOTE’s investment is the abundance of cheap gas, rising Marine Diesel Oil prices and stricter environmental regulations. This past August, the North American Emissions Control Area (ECA) became enforceable. Ships that are subject to MARPOL operating in the ECA, which extends 200 nautical miles off of most of the continental U.S. and Canada, must burn low sulfur fuel oil (not exceeding 1.00% or 10,000 ppm) or install and use an equivalent means of compliance approved by its flag State. This could mean installing Exhaust Gas Scrubbers or SCRs. Another method is to burn LNG, an extremely clean burning fuel, eliminating almost all SOx, 85 to 90 percent of NOx, with no particulate matter. In addition, a U.S. Caribbean ECA for Puerto Rico and the U.S. Virgin Islands out to approximately 50 nautical miles JAnuARY 2013 MARINE LOG 17

Jan 2013 Marine Log Magazine  

Jan 2013 Marine Log Magazine.pdf

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