Page 30: of Maritime Logistics Professional Magazine (Q1 2013)

Anthony Chiarello, President & CEO, TOTE, Inc., is a fourth-generation maritime professional, starting with his great grandfather who owned a ferry service from Sicily to North Africa. When the family emigrated to the U.S. in the late 1800s, Chiarello Brothers (later changed to American Stevedores) was founded in 1898, a company that became one of the largest stevedoring and terminal operating companies in the Port of New York, and one of the Þ rst Italian immigrants in the port. So it is fair to assume that Chiarello is well-versed in many matters of maritime risk. Late last year, TOTE made waves when it ordered the worldÕs Þ rst LNG powered contain- ership. Chiarelli addressed the inherent risk of the deal in an interview with Maritime Professional. When U.S. ship owner Tote Inc. ordered the world?s  rst LNG- powered containership, it literally shocked the maritime world as the order was from a U.S. company to be built by a U.S. shipbuild- er (NASSCO in San Diego). Interesting too was the MAN power selection, the  rst major reference for the global power company?s new line. Chiarello is a 33 year-year veteran in the maritime and logistics business, leading TOTE since August 2010 and previous- ly COO and EVP of NYK Logistics (Americas), Inc., and before that with the AP Moller/Maersk organization for 16 years. Fast forward to 2012 and TOTE is a company that currently owns six ships: three (two in service, one laid up) in the Puerto Rico service; and three (two in service, one laid up) in the Alaska service. In addition, it operates 14 ships under its TOTE Services division, mostly MarAd and MSC ships, but a few commercial ships too.When the decision was taken to order the groundbreaking ships, in Chiarello?s mind, the inherent risk was in not doing the deal, as the ships being replaced will be forced from the Puerto Rico trade in 2019 due to ECA rules. ?For us, this decision was purely made on the back of the environmental impact and how the ECA guide- lines are driving the shipping business,? Chiarello said. Explain- ing that it was an environmental decision, not a  nancial decision, added for emphasis, ?I don?t know what LNG is going to cost in three years when the ships come out; I absolutely know what the impact will be in terms of emissions: that?s not going to change. LEADERSHIPAnthony Chiarello CEO, TOTE Inc.??I really think that going to an LNG fuel source is the next wave. I know it?s a solution that is more aligned with shorter routes than long 12,000 nautical mile international runs due to the tankage required, but I  rmly believe that at some point in the not too distant future that this challenge will be addressed as well and eventually LNG will be the primary fuel source for global shipping 30 | Maritime Professional | 1Q 2013MP #1 18-33.indd 30MP #1 18-33.indd 302/22/2013 11:03:28 AM2/22/2013 11:03:28 AM