TOTE plans new Hawaii service with Philly newbuilds

Ships contemplated by LOI have already started construction and will be the direct continuation of the Aloha Class series that Philly Shipyard is building for Matson Ships contemplated by LOI have already started construction and will be the direct continuation of the Aloha Class series that Philly Shipyard is building for Matson

AUGUST 17, 2017 — Saltchuk company TOTE has emerged as the hitherto unnamed "blue chip U.S. shipping operating company" with a letter of intent (LOI) to build up to four advanced new containerships at Philly Shipyard for the Jones Act Hawaii trade.

TOTE today announced today its intention to establish a new domestic shipping service to Hawaii, saying it is "working with Philly Shipyard to construct four new environmentally advanced containerships, custom built for the trade."

TOTE says says that this week it began conversations to secure the new deep water Kapalama Container Terminal (KCT) in Honolulu for TOTE, a critical step in making the new service a reality.

For more than 40 years, says TOTE , it and its operating companies have provided dedicated service to Alaska and Puerto Rico. As part of its commitment and stewardship of the communities it serves, the company has invested more than $600 million to convert its ships to run on LNG, making its fleet the most environmentally friendly in the U.S.

"TOTE is excited to bring our best-in-class service to the people of Hawaii," said Anthony Chiarello, President and CEO of TOTE. "TOTE's presence on the islands will provide market stability and introduce new environmentally advanced vessels that will greatly benefit the islands."

Timing is critical for construction of new ships for Hawaii, says TOTE, and a commitment for terminal space in Honolulu is needed to move the new venture forward. New environmental regulations taking effect in 2020 necessitate replacement of aged ships currently operating in the trade. As planned, says the company, the new vessels from Philly Shipyard will enter service in early 2020 and 2021, just in time to meet the deadline and maintain trade capacity.

"TOTE's commitment is to provide superior service for our customers as well as the communities we serve, ensuring that goods arrive on time week in and week out," noted Chiarello. "TOTE will bring the same commitment to our Hawai'=i operations to ensure maritime transportation is industry leading."

Philly Shipyard has already started construction of the two 850 ft vessels contemplated by the LOI in order to support their optimal delivery dates. The vessels are the continuation of the series of two similar 3,600 TEU LNG capable dual-fuel "Aloha Class" containerships currently under construction by the shipbuilder for Matson.

"Philly Shipyard is very excited to have TOTE as its partner under the LOI and fully supports the efforts to introduce new vessels into the Hawaii containership trade to replace aged ships in time to meet new environmental regulations," commented Steinar Nerbovik, President & CEO of Philly Shpyard.


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