Page 32: of Maritime Logistics Professional Magazine (Q3 2014)

Power & Fuel Management

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the vessel design. SigniÞ cantly, TOTE is the launch customer of MANÔs innovative ME-GI engine design with the main and auxiliary engines manufactured by Doosan. LNG bunkering will be handled by Pivotal LNG, Inc., a wholly owned sub- sidiary of AGL Resources, and WesPac Midstream LLC will supply LNG in Jacksonville, FL. In July, the arrival of the worldÕs Þ rst dual-fuel slow-speed engine at NASSCO marked the next phase of construction for TOTEÕs Marlin Class vessels. Earlier this year, Doosan com- pleted the engineÕs Factory Acceptance Tests, a culmination of months of testing to ensure compliance with U.S. regulations and restrictions. In addition to the engines, two 900 cubic me- ter tanks, manufactured by Cryos, were delivered. These mas- sive stainless steel cryogenic tanks weigh 380 tons each and will store liqueÞ ed natural gas aboard the Marlin ships. Separately, Norwegian-based Air Products was selected by TOTE to provide Nitrogen Membrane Generators for the ves- sels. The system, approved by all international marine stan- dards, has a reduced footprint and lowers the operational cost at the same time. Maintenance is kept to a minimum thanks to a robust design and carefully selected materials. Air Products also provided Nitrogen Membrane Generators Ð a key safety component for any LNG system Ð to another North American LNG pioneer, Harvey Gulf International Marine. Harvey Gulf, in its own niche OSV market, is transforming the offshore oil service sector in much the same way TOTE is shaping the future of ocean freight. For its part, Air Products has been in business for more than 30 years and claims a market share of 90 percent, having delivered almost 400 systems over time. In terms of the Orca conversions, new standards for envi- ronmental responsibility will be set by reducing sulphur oxide (SOx) emission by 100 percent; particulate matter (PM) by 91 percent; nitrogen oxide (NOx) by 90 percent; and carbon dioxide (CO2) by 35 percent. In this case, W?rtsil? will supply main engines, generators and integrated LNG storage and fuel gas handling systems (LNGPac). Shufß ing the TOTE Deck The realignment of Þ ve operating companies into three dis- tinct lines of business Ð Tote Maritime, Tote Ship Manage- ment, and Tote Logistics, was, says the TOTE CEO, a care- fully planned and executed move. He explains, ÒWe wanted to re-brand and leverage some of our existing businesses. And certainly Totem was the Þ rst company that Saltchuk ever pur- chased. It had the strongest brand, so thatÕs when we decided to use Tote as the overarching holding company brand. And then we looked at our businesses and said, ÔWeÕre in marine Ð obvi- ously Sea Star and Totem Ocean Ð we had some logistics ser- vices under the brand of Spectrum, which was in the Southeast.Õ We hadnÕt yet purchased Carlile Transportation. And we had what was previously known as Inter-Ocean American Shipping. So we had ship management, we had some logistics and it was deÞ nitely a look ahead that logistics would grow to try to lever- age our existing asset infrastructure, and we had the maritime piece. When we started looking at rebranding, we placed it into three buckets: maritime, logistics, and services. And thatÕs how weÕve grown up from there. And any acquisitions we do, any organic growth, we try to keep into those three buckets.Ó The three distinct lines of business interact with one anoth- er. But, Chiarello insists that putting targets of placing cer- tain percentages of business within one group or the other is not the way to go. ÒWe donÕt do that to the point of saying, ÔYouÕre responsible for putting 10 or 20 percent of all the lo- gistics business that you do on a Tote ship or on a Sea Star ship.Õ I donÕt think that drives the right behavior. I think it should be Þ rst what the customer needs and wants Ð it may be a Tote ship, it may not.Ó When the talk turns to TOTE, people invariably want to focus on the LNG and the newbuilds because itÕs exciting. But, there is more going on there than just LNG. The Saltchuk Group, TOTEÕs parent, has grown to over 20 independent companies, 5 operating groups with TOTE being one of them. Today, TOTE is the biggest division within the Saltchuk Group, represent- FUEL MANAGEMENT TOTE is the launch customer of the ME-GI engine, a signiÞ cant advancement in propulsion technology. 32 | Maritime Professional | 3Q 201418-33 Q3 MP2014.indd 3218-33 Q3 MP2014.indd 328/13/2014 3:54:13 PM8/13/2014 3:54:13 PM

Maritime Logistics Professional

Maritime Logistics Professional magazine is published six times annually.