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6 MARITIME REPORTER & ENGINEERING NEWS ? JANUARY 2013 Having sat in this chair for more than two decades, I must admit that I have become somewhat jaded in the sense that there are few develop-ments which actually give me cause to pause. Of course there are the spectacular casualties that will never cease to amaze, but on the busi-ness side there are very few real showstoppers.Then there was last month. Just as I was literally packing up to head down to New Orleans for the Interna-tional Workboat Show, news broke that U.S. ship owner TOTE Inc. had sealed the deal to build the world?s Þ rst LNG-powered containership (it is a dual fuel MAN main driver, but the full intent is to operate on LNG the majority of the time). As the ships (two Þ rm, three options) are intended for the U.S. to Puerto Rico Jones Act trade, there was no surprise that they must be built in the U.S., in this case at San Diego-based NASSCO. On the surface, to think that a U.S. ship owner and a U.S. shipyard have collaborated to build a ground-breaking, technologically ad-vanced, world-class ship that will not be painted grey is truly amazing. On the surface, that is.?I?m a little surprised that it came as fast as it came, but I?m not surprised that an American ship owner has decided to invest in this technology,? succinctly sum- marized Ole Grøne, long-time Senior Vice President Low-Speed Sales and Promo- tions at MAN Diesel & Turbo. Ship owners large and small are facing ever stringent rules governing the emis- sions their vessels put into the sea and into the air. TOTE, which runs six ships in its Puerto Rico and Alaska services, was forced to introduce new containerships, as the ships serving its Puerto Rico trade must be pulled from service in 2019 due to North American ECA regulations. When I spoke to Anthony Chiarello , President and CEO of TOTE Inc., last month regarding the deal, he essentially said the decision to build these ground-breaking ships with an LNG powered main drive was a no-brainer. ?I don?t know what LNG is going to cost three years from now when the ships come out; but I absolutely know what the impact will be in terms of emissions: that?s not going to change. If there?s an advantage from a fuel cost perspective, that will be wonderful, but that?s not what this decision was based upon: it was purely an environmental consideration,? Chiarello said.And for followers of the U.S. shipbuilding market, it should equally be of little surprise that NASSCO landed the order. The shipyard has an established relation- ship with the owner, but more so it has ? under the steady guidance of long-time leader and president Fred Harris ? been an investor in itself, via relationships with design and procurement partner Daewoo Ship Engineering Company, and directly through investments in its facilities, people and modern management initiatives.?I think this contract symbolizes two signiÞ cant points,? said Harris. ?First, the United States can still take a leading position in the global maritime industry by smartly teaming and learning from world-class shipbuilders ? and second, this contract represents that the Jones Act is alive and well.? Coverage of the deal and the new ships, with insights from leading executives at each of the main players, starts on page 32.In the big picture, the TOTE deal is really just a microcosm of the trend that will deÞ ne shipping to and through 2020. The focus on marine fuels, lubes and emissions is growing daily, and while vessel owners lament (to put it very nicely) additional layers of regulation, it is the reality of the world in which they operate. Literally, it is almost impossible to turn a page in this publication this month which doesn?t in one way or another address energy and its effects on the shipping industry. The USS Makin Island, which was widely hailed as a technological mar- vel when it was delivered, is now back from its Þ rst deployment, and according to the Navy the fuel-saving numbers courtesy of the ship?s hybrid electric propulsion systems are staggering: 4 million gallons of fuel and more than $15 million saved. Henrik Segercrantz reports starting on page 28.While the global maritime market has been in a collective economic funk since the global Þ nancial crisis and ensuing economic malaise of 2008, many signs indi- cate the abyss has been reached, and in true cyclical maritime fashion, a collective ramp-up in business across the board can be expected starting today, but really picking up steam and moving fast from mid-2014 forward. While the notion of investing in your ß eet to meet environmental regulations seven years down the road may sicken the stomach looking at current Þ nancials, you can be sure that the quality, long-term players are starting to invest today in preparation for tomorrow. SUBSCRIPTION INFORMATION Subscription Information One full year (12 issues)  in U.S.: $69.00; two years (24 issues) $98.00  in Canada: $73.00; two years (24 issues) $105.00  Rest of the World: $98.00; two years $152.00 including postage and handling. 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No part of this publication may be reproduced or transmitted in any form or by any means mechanical, photocopying, recording or otherwise without the prior written permission of the publishers. Check out our Websites: www.marinelink.com / www.maritimeprofessional.com / www.maritimepropulsion.com / www.maritimejobs.com / www.seadiscovery.com www.maritimeequipment.com / www.marineelectronics.com / www.yachtingjournal.com / www.maritimetoday.com 118 East 25th Street, New York, NY 10010 tel: (212) 477-6700; fax: (212) 254-6271 Founder: John J. O?Malley 1905 - 1980 Charles P. O?Malley 1928 - 2000 Download our AppiPhone & AndroidEDITORIAL TOTE ?Walks the Walk? Gregory R. Trauthwein, Editor & Associate Publisher [email protected] #1 (1-9).indd 6MR #1 (1-9).indd 61/4/2013 10:11:42 AM1/4/2013 10:11:42 AM