Trust Your Instruments

Part of the reason is that many shipping companies simply don’t realize that it is possible to capture most, if not all, of the environmental (and to a large extent, health and safety performance data on a ship electronically and automatically from its original equipment source. Onboard electronic systems these days can record exact real-time data in a multitude of areas: on engine performance, navigation, wind speed, fuel usage, tank levels, valve openings, oily water separator run-times, outputs from oil content monitors, and many other key indicators of a ship’s environmental and commercial performance.

If You Can Know, You Should Know

Skeptics claim that the reason that shipping companies don’t want to invest in automated monitoring and reporting systems is that they really don’t want to know what is happening on their ships. A high level of transparency might reveal the extent that regulatory violations – a magic pipe, committing ballast water infractions, nighttime dumping of sewage, etc. – continue to occur, covered up by doctored, hand-written logs.

But Those Times Are Changing Rapidly

The U.S. Coast Guard and the Justice Department have pursued shipping companies for violations costing the industry more than $200 million in fines in the past decade. The fleets of many well-known shipping companies are being closely monitored while under court-supervised probation (via ECPs). And criminalization of ships’ officers, and inevitably of shipping company executives, will become even more commonplace. Worldwide, Exclusive Economic Zones (EEZ) and Sox Emissions Control Areas (SECAs) will continue to set increasingly demanding emissions standards, and any further market for emissions trading will invariably require authenticated (i.e. electronic) reporting from ships and owner/operators before they will be allowed to claim emissions credits or debits.

In short, the time for electronic monitoring and reporting of shipboard environmental, health, and safety data is coming rapidly to the industry, and the era when a ship’s master or CE could simply fill out an unauthenticated paper log is on the way out. Company officers claiming not to know about poor safety or environmental practice onboard their ships will no longer have an acceptable excuse – if available systems mean that management “can” know, then authorities will soon argue that they “should” know. The best companies already see the light and are changing accordingly.

These companies are using Quantum’s Maritime Compliance System to meet their electronic recording and compliance needs.

Quantum Compliance Systems, Inc. – 2111 Golfside – Ypsilanti, MI 48197

Tel: (734) 572 1000 – Fax: (734) 572 8815 – www.qcs-facts.com

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Quantum Compliance Systems, Inc. – 2111 Golfside – Ypsilanti, MI 48197 Tel: (734) 572 1000 – Fax: (734) 572 8815 – www.qcs-facts.com

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Maritime Compliance System

Revolutionizing Environmental Compliance Monitoring and Reporting in the

Maritime Industry . . .

Officers and crew in the maritime industry already have to deal with an overwhelming and mind-numbing amount of paper-based logs and reporting forms, and the growing number of environmental regulations coming into effect in the next few years (e.g. the EPA’s National Pollutant Discharge Elimination System) will add to that burden.

Every mariner also knows that environmental infractions and false reporting on log entries – for waste water disposal, garbage, sewage, or ballast water – can result in severe fines for shipping companies, and criminal charges for crew and company owners alike.

But with a growing concern for climate-related pollutants, the emphasis for environmental reporting is quickly shifting from what ships put into the sea, to what ships put into the air. With the ratification of MARPOL’s Annex VI and America’s new ECA status, ships entering US ports may soon be required to report on fuel and engine use. The California Air Resources Board has already announced its own standards for low-sulfur fuels in ocean-going vessels, enforcing new requirements with port inspections, and fines of up to $50,000 for each violation.

Quantum’s Maritime Compliance System (MCS) allows company officers to be certain that their ships are in compliance with state and national laws, ISM and MARPOL regulations, and for renewal of their ships IAPP certification.

MCS allows companies to:

• Capture and Store Shipboard Environmental Performance Data Automatically, Identify Variations from Permits, and Alert the Crew and Company to Non-Compliant Activities

• Create Shipboard and Shore-Based Environmental Compliance Monitoring Dashboards and Reports

• Perform all Activities Required to Comply with the U.S. EPA's New Vessel General Permit (VGP)

Maritime Compliance System captures shipboard data electronically at its source – from the oily water separator, emissions monitoring equipment, oil content monitor, tank level indicators, to navigation, engine, and fuel systems – and then presents that information via satellite real-time through easy-to-monitor dashboards that are available both on the ship and at company offices on shore. By using Quantum’s newly released Federated Queries tool, users can query more than one data source at a time and combine the results in memory into a single report and/or table. This enhancement allows you to treat all your data sources (e.g. crewing, planned maintenance, purchasing, etc.) as one virtual database and

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access them as a single query – enabling you to focus on building reports, not joining data sources.

Not only does MCS eliminate the need for time-consuming and often inaccurate paper-based logs and compliance reporting by the crew, but more importantly, it means your company is instantly alerted to potential areas of risk or non-compliance. MCS gives shore supervisors and QSE staff the ability to monitor their fleet’s environmental performance at the ship level: real-time, anytime, anywhere. The database stores the data indefinitely to provide an auditable trail and historical trend reports.

This automatic, real-time data capture is about to revolutionize environmental and safety reporting in the shipping industry.

• Capture and Store Shipboard Environmental Performance Data Automatically, Identify Variations from Permits, and Alert the Crew and Company to Non-Compliant Activities: In today's modern fleet, 70% - 90% of all the information required to create and verify log books, and to confirm environmental compliance, is already captured in electronic form by a ship's onboard systems and monitoring devices:

o Electronic tank level sensors o Flow meters o Emissions monitoring equipment o Electronic valves o Oil content monitors o Oily water separators o Navigational systems o Engine and fuel systems

MCS’ Data Builder feature imports this data into a common ship-shore database where it can be organized, maintained, and viewed. Automatically generated variance and non-compliance flags alert the crew and shore staff to variations in permit requirements and non-compliance with environmental regulations.

• Create Shipboard and Shore-Based Environmental Compliance Monitoring Dashboards and Reports: Once captured electronically, the data can be made available to ship's officers and company executives through a Dashboard, a single, easy-to-understand interface where they can view information from a variety of sources and interpret real-time performance at a glance.

MCS incorporates a GIS layering and Web Map Service (WMSS) so you can track your ships globally through the Dashboard, and be alerted to different environmental regimes as they pass through coastal boundary waters.

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Quantum Compliance Systems, Inc. – 2111 Golfside – Ypsilanti, MI 48197 Tel: (734) 572 1000 – Fax: (734) 572 8815 – www.qcs-facts.com

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As part of our newly-released generic mobile interface, the growing trend of mobile Business Intelligence (BI) is supported through the release of both a native iPhone application and a generic mobile interface; providing full featured delivery of both dashboards and reports to a mobile workforce.

• Perform all Activities Required to Comply with the U.S. EPA's New Vessel General Permit (VGP): The United States Environmental Protection Agency has recently required all non-recreational vessels of 79 feet or longer (except commercial fishing vessels) to apply for coverage under a Vessel General Permit (VGP). MCS allows users to track all aspects of this new regulation including:

o Permit Specifications o Inspections and Monitoring Requirements o Recordkeeping and Reporting o VGP Corrective Actions for any violation o Training Requirements as defined by the VGP regulations

MCS includes these features:

Base System

The Base System provides the foundation for deploying a fleet-wide Maritime Compliance System. It stores the corporate organizational structure, as well as the mechanical and physical layout of each vessel, including all the ship's various tanks, valves, and environmental monitoring or abatement equipment (e.g. oily water separators, ballast tanks, and emissions monitoring equipment). Equipment definitions are used to identify equipment readings imported through the Data Builder tool, allowing the user to extrapolate emissions performance from voyage performance and fuel data readings. Onboard or onshore users can monitor bilge and ballast-related systems (tanks, valves, gauges) real-time. This information can be cross-matched with ship location (longitude and latitude) and vessel speed in order to create a record of NOx and SOx emission performance during various modes (i.e. underway, reduced speed, manoeuvring, at berth).

Employees, job classifications, and employment records are stored in the Base System for use in OSHA reporting and training tracking. It includes easy-to-use system security and utility functions, allowing complete self-administration of the software. Base also allows users to automatically schedule the generation of reports at a particular date and time, using pre-specified selection criteria. This feature is extremely useful for users that need to run the same report on a daily, weekly, monthly, or yearly basis.

Data Builder

The Data Builder capability lets users load legacy data, perform periodic uploads of data electronically at its source (e.g. from oily water separator, oil content monitor, tank level indicators, navigation systems, flow meters, and emissions monitoring equipment), and perform field validation on the data while it is loading.

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Quantum Compliance Systems, Inc. – 2111 Golfside – Ypsilanti, MI 48197 Tel: (734) 572 1000 – Fax: (734) 572 8815 – www.qcs-facts.com

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Dashboard

Dashboards communicate complex information quickly, translating vessel and/or corporate data into a rich, graphical presentation using gauges, maps, charts, and other graphics to show multiple results together. Screens and reports can be individually configured according to user needs, with simple “drill down” features providing increased levels of detail for analysis of original data. Below are highlights of MCS Dashboard functionality that allows you to connect and manage all of your ships data in a single application:

• Federated Queries enable users to query more than one data source at a time and combine the results in memory into a single report and /or table. This feature allows you to treat all your data sources as one virtual database and access them as a single query – enabling you to focus on building reports, not joining data sources.

• The growing trend of mobile Business Intelligence (BI) is supported through the release of both a native iPhone application and a generic mobile interface, that provide full featured delivery of both dashboards and reports to a mobile workforce. Unlike most BI applications for the iPhone that just post static reports on a mobile screen, which may be marginally helpful but creates a tremendously frustrating user experience, MCS Dashboard for the iPhone provides the opportunity to interact with the data. This allows mobile users access to the specific answers they need.

• It delivers a wide range of Spatial BI features including: geographic information system (GIS) layering and enabling Web Map Service (WMS) layers on GIS reports. Multiple condition ranges enable users to divide a range of results into several smaller subsets and display them clearly on the one chart.

Emissions & Effluent Management

This feature uses equipment readings that are stored along with GPS vessel positions, and time and date stamp to track Greenhouse Gases (GHG), NOx, SOx, and other emissions that fall under Clean Air Act requirements and the EPA's Vessel General Permit (VGP). Users can estimate air and water emissions and prepare the necessary permits. Automatic notification flags tell users when they're out of compliance. The system is pre-loaded with AP-42 equations, and allows the user to define and use custom equations.

Environmental Excursion Reporting (Spill Reporting)

The Environmental Excursion capability allows users to identify and track spills, and spill responses. It also alerts the user to “reportable” actions based on different regulatory lists, and records calls made to regulatory agencies.

Waste Tracking/Management

The number and quantities of hazardous and non-hazardous containers (e.g. garbage, photo processing fluid, bilge, sludge, gray water, and black water) can be tracked, and the system

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can generate and print shipping documents such as manifests and bills of lading. Waste can be characterized based on analytical samples. The system tracks off-site transportation companies, identifies treatment and disposal locations, lists treatment and disposal options, and generates waste total reports.

Task and Permit Management

MCS customers use the Task and Permit Management feature to track and manage routine and scheduled tasks such as tag downs, inspections, and meter readings. This function defines and automatically distributes tasks (along with instructions and guidelines on how to fulfill the task) to the appropriate staff via email on a predefined schedule. Daily, weekly, monthly or aging task reports are made available electronically to the Chief Engineer, the Master, the shore-side supervisor, or other members of the management team as required.

This feature also stores permit data for multiple types of permits (including the EPA’s Vessel General Permit), including information on issuing agencies, issue expiration, renewal dates, permit conditions, and tests required to meet permit conditions. “Out-of-permit” conditions are identified through alert messages.

Incident Reporting

Incident Reporting allows users to identify and track incidents, associated releases and responses, flag reportable releases, generate inspection requests, track corrective actions, and calls made to regulatory agencies. MCS automatically determines whether the incident is reportable and advises users of contact actions.

Injury-Illness Tracking

This feature stores, sorts, and retrieves the information needed to prepare regulatory reports like OSHA Forms 101 and 300. Dashboard's ad hoc reporting feature allows each customer to create custom injury-illness reports to meet their needs, and those of any regulatory agency. The Injury-Illness Tracking feature also examines factors contributing to accidents and illnesses, and performs appropriate statistical analysis.

Training Tracking

This feature allows users to track employee training requirements and schedules in order to manage necessary training based on job classification, department, or equipment and product use. Users can establish and maintain courses, instructor qualification records, student achievement records, class rosters, and attendance records. It is designed in a manner that allows it to be linked through Document ICR to other computer base training tools, and through the use of Data Builder to load the results captured by those third-party systems.

© 2009 ~ Quantum Compliance Systems, Inc.

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Quantum Compliance Systems, Inc. – 2111 Golfside – Ypsilanti, MI 48197 Tel: (734) 572 1000 – Fax: (734) 572 8815 – www.qcs-facts.com

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Maritime Compliance Solution’s Dashboard

Overview

Dashboards communicate complex information quickly, translating vessel and/or corporate data into a rich, graphical presentation using gauges, maps, charts, and other graphics to show multiple results together. Screens and reports can be individually configured according to user needs, with simple “drill down” features providing increased levels of detail for analysis of original data. Data can also be rolled up by region, vessel type, or by fleet to see corporate totals, or to do comparisons and trends. MCS Dashboard reads data from the extensive MCS database to create these graphical presentations. Below are highlights of MCS Dashboard functionality that allows you to connect and manage all of your ships’ data in a single application:

Tabs

In the Dashboard, reports are grouped according to media type under individual tabs. An example set of Tabs is shown below. Users have access to the various tabs according to their security setting. Each user can create personal tabs, or authorized users can create new global tabs.

Alerts

Alerts can be set up to notify the Chief Engineer, the Master, the shore-side supervisor, or other members of the management team when a condition is outside it’s normal range or if a task hasn’t been performed. Types of alerts may include bilge transfers without oily water separator activity, undocumented drop in ‘black water,’ or oily water tanks or a gauge above a pre-set trigger level. In addition, tasks may be scheduled such as waste collection site, boiler, or lifeboat inspection. If the crew doesn’t record in MCS that they completed their assigned task, the appropriate manager(s) will get an overdue task alert.

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Reports

Here are a few examples of the types of reports that are available via the Dashboard. In addition to the Emission, Incident, and Ballast reports shown below, reports dealing with bilge, sewage, spills, garbage, and general voyage data are also available. The Dashboard supports over 25 different types of charts, and has a rich Google Maps interface. The Dashboard also allows for full ad hoc and user created reports. Reports can be set up to refresh at a user-defined period, and to be broadcast via email at any interval wanted. All reports can be exported and saved to Microsoft Word or Excel, to PDF, CSV or RTF formats.

Emissions

A variety of air emissions currently need to be tracked and the list keeps growing. Dashboard reports and graphs allow management to quickly see individual emission levels or total emissions, at a vessel or corporate level. Managers can see overall trends and benchmark individual ships and fleets, or flag administrations of potential problems. Management can also drill down on graphs or reports to see the detailed data.

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Quantum Compliance Systems, Inc. – 2111 Golfside – Ypsilanti, MI 48197 Tel: (734) 572 1000 – Fax: (734) 572 8815 – www.qcs-facts.com

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Incident/Illness-Injury

Incidents on vessels, however minor, should be reported and investigated. Where required, corrective actions take place and performance targets are set to drive continuous improvement. Dashboard reports allow managers to examine the factors contributing to accidents and illnesses, track completion of correction actions, and perform appropriate statistical analysis. Reports that are useful to run include Near Misses, so improvements can be made to prevent the next incident. Other Dashboard reports are used to evaluate training programs and operating procedures based on the types of incidents reported, or the locations/departments where they occur. These all lead to improved safety practices, reduced accidents, and reduced worker compensation costs.

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Quantum Compliance Systems, Inc. – 2111 Golfside – Ypsilanti, MI 48197 Tel: (734) 572 1000 – Fax: (734) 572 8815 – www.qcs-facts.com

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Ballast Water Management

Invasive marine species in new eco-systems have been identified as one of the four greatest threats to the world’s oceans. One way invasive marine species are introduced is by a ship’s ballast water. International, regional, national, and local authorities have established new demanding regulations on ballast discharge with large fines being levied for discharge and reporting infractions. Vessels and ship owners need the ability to produce verifiable documentation on demand relating to ballast exchange activities. Quantum’s MCS collects vessel location, pump activity, volume intake, and discharge information in real time to create a “Ballast Management Log” for each voyage, and for each vessel in a fleet. MCS’s Dashboard allows to data to be viewed on demand by the Captain, Chief Engineer, Fleet Manager, or any requesting authority, in both text and graphic format. The graphic format allows for quick and easy monitoring, and provides company officers with an accurate history of ballast exchange activities.

2111 Golfside, Ypsilanti, Mi 48197 Phone: 734.572.1000 Fax: 734.572.8815 E-mail: sales@qcs-facts.com qcs-facts.com

Copyright 2009 Quantum Compliance Systems, Inc.