Page 31: of Maritime Logistics Professional Magazine (Q1 2013)

If there?s an advantage from a fuel cost perspective, that will be wonderful, but that?s not what this decision was based upon.? Mitigating the risk is the fact that TOTE already has LNG experience un- der its belt, as last August it announced the conversion of its Alaska ORCA class ships to LNG. ?So we had already spent a lot of time looking at LNG as an al-ternate fuel source. There was no doubt that the ships were going to be dual fuel and that LNG was going to be the primary fuel source. That was never a question,? Chiarello said. But anytime a shipbuilding deal comes with the tag ?World?s First? there are natural questions. The  rst and last questions of risk on this deal are LNG, or more accurately, the ready supply of LNG to his ships. As of now, the infrastructure simply does not exist. While the U.S. continues to power forward and rapidly expand its discovery and recovery of natural gas, there remains a dearth of LNG bunker- ing stations here and abroad, presenting a classic ?chicken and egg? scenario: build the ships and hope for the bunker- ing infrastructure; or build the bunker- ing infrastructure and hope for the ships.Though it is the only remaining piece of the puzzle, Chiarello is betting the bunkering market will follow in kind. ?Locking in our fuel source in both the Paci c NW as well as in the Puerto Rico service (is the only missing piece),? Chi- arello said. ?But immediately following our announcement, I had no less than a dozen contacts from parties who are al-ready providing LNG in other locations that would like to provide it to us. We have little concern that there will be ad- equate choice of fuel source, but if there is any missing piece today, this is it.? With four generations of maritime risk management and mitigation in his DNA, odds are strongly in favor of Chiarello and TOTE working it out to commercial advantage. - Trauthwein With our 8,500 CY Seagoing Hopper Dredge ?Magdalen? currently under

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} [email protected] www.weeksmarine.com KlDl&lls www.maritimeprofessional.com | Maritime Professional | 31MP #1 18-33.indd 31MP #1 18-33.indd 312/22/2013 11:03:44 AM2/22/2013 11:03:44 AM