TOTE announces plans for new U.S. Mainland to Hawai’i service
Terminal space in Honolulu key to TOTE’s plans to bring new environmentally advanced containerships to Hawai’i trade in 2020
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TOTE recently announced its intention to establish a new domestic shipping service to Hawai’i. The company is working with Philly Shipyard to construct four new environmentally advanced containerships, custom built for the trade.
Conversations were started last week to secure the new deep water Kapalama Container Terminal (KCT) in Honolulu for TOTE. According to TOTE spokesmen, this is "a critical step" in making the new service a reality.
For more than 40 years, TOTE and its operating companies have provided dedicated service to Alaska and Puerto Rico. At the same time, the company has invested more than $600 million to convert its ships to run on natural gas, thereby making its fleet more environmentally compliant.
Anthony Chiarello, President and CEO of TOTE, said in a statement that TOTE’s presence on the islands will provide market stability, as well.
Timing is important, added TOTE. New environmental regulations taking effect in 2020 necessitate replacement of aged ships currently operating in the trade. As planned, 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.
Meawhile, Matson Navigation - the trade lane's market leader - told LM in an interview that it will build upon that 135-year legacy to remain on top.
"We continue actively investing in our service, including nearly $1 billion in new ships and terminal improvements coming online over the next three years, and remain committed to our mission – to move freight better than anyone," said a spokesman.
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at [email protected]