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Emerging victorious from the vetting processwith BASSnet’s new module

According to BASS Asia Pacific sales head Mark Ravi, if maritime software systems are implemented properly, they can go a long way towards empowering the crew.

gettiNg CreW to buY iN

BASS was recently given the Frost & Sullivan Marine Provider of the Year Best Practices Award in the Asia Pacific region at a ceremony in Singapore.

a PreStigiouS PriZe

news @ BASSnet3.2010

Since June, BASS has put pen to paper with five different companies – including a mammoth deal with Singapore’s Pacific International Lines (PIL).

a SuMMer oF CoNtraCtS

September 20102

Software catered for an increasingly complex processWhile the recent Deepwater Horizon oil spill in the Gulf of Mexico didn’t have anything to do with the transport of oil or leakage from an oil tanker, there can be no doubt that the incident will have ramifications on the entire offshore market – including oil tankers – for many years to come.

The vetting process already consumes valu-able time and resources for shipowners and ship managers, and the oil spill will, with good reason, have a profound industry effect. Not only should one expect more stringent regulations from US authorities, but oil indus-try vetting requirements will certainly become tighter as well. While quality shipping has always been the only way to assure long-term success for shipowners and ship managers, now it’s doubly clear that it’s the only way to have any success in the industry, period.

It’s also apparent that this tightening of restrictions for oil tankers is not restricted by geography or to oil major vetting. Indeed, the Paris MoU Port State Control organisation recently announced a three-month damage stability inspection campaign targeting tank-ers beginning on September 1.

Our new Vetting module – which we’ll be featuring in a pre-release launch along with the rest of BASSnet 2.7 at SMM in Hamburg in September – supplies shipowners and ship managers with the structure needed to carry out the entire vetting process from planning through execution and analysis, and provides the tools to assist in meeting and exceeding class, port state and oil major expectations.

For a closer look at the Vetting module, please see the cover story. The new module is a prime example of how our continuous improvement of our integrated software product offering – together with hands-on support and further staff and R&D investments – make for satis-fied customers with higher profits and greater transparency. As proof we can point to a great number of contract signings in recent months (see the following article) and the recent Best Practice award from Frost and Sullivan (page 6). Hopefully the rest of 2010 will bring contin-ued success to you and your fleet as well. •

While BASS in early June announced the signing of one of 2010’s largest maritime IT contracts with Singapore’s Pacific International Lines (PIL), it was just the start of a busy few months for the company’s sales team. Since that time BASS has also put pen to paper with Da Sin Shipping, Lamnalco Niger-ia, Sandigan Ship Services and Inwind.

BASS’ contract for the supply and instal-lation of the entire BASSnet Fleet Man-agement System suite on 80 PIL vessels followed a year-long evaluation process comprising in-depth discussions followed by live product demonstrations. The PIL deal marked BASS’ largest contract since its July 2009 signature with major oil and gas player Stolt Tankers.

“We’ve been looking for a partner for a few years that could provide software integrity with local authorities and user-friendly features in an integrated solution that meets the complex needs of our entire ship operations. BASSnet gives us the en-tire package,” says PIL’s Deputy Manag-ing Director, Tan Chor Kee.

Office implementation for the BASSnet software is slated for completion by the end of 2010, and vessel implementation is expected to start in early 2011.

Just the start Since the signing of the landmark PIL contract, three additional deals have come to fruition in rapid succession. Singapore’s Da Sin Shipping has now come aboard with BASS for the installation of Safety Management (SAFIR), Maintenance, Procurement, Financials, Report Generator and KPI Dashboard BASSnet modules on 18 of its bulk vessels. BASS already conducted

and completed planning and configuration workshops with Da Sin during June, and is targeting to complete six vessel implementations by the end of 2010.

The contract with towing and oil and gas terminal marine services company Lam-nalco involves the purchase and imple-mentation of BASSnet Fleet Management Systems for installation in the company’s vessels and offices. After kicking off with vessel installation for Lamnalco Shar-jah, data population, BASSnet 2.6 office implementation and user training are ex-pected to take place at Lamnalco Nigeria during the course of September.

Philippines-based technical and crew management company Sandigan Ship Services also became a BASS customer in July 2010. After project kickoff, technical review workshop and database popula-tion training in late July, the goal now is to have BASSnet Maintenance running at the Sandigan office and on the first few vessels by the end of September 2010.

Finally, BASS has concluded a deal with Norway’s Inwind, which looks primed to become a key global player within the ar-eas of offshore installation and wind farm operations. Inwind will utilise BASSnet to assist in the management of the compa-ny’s vessels and offshore operations. •

PIL contract just the start of BASS’ busy summer

CUSTOMER CONTRACTS

BASSnet™ modules • Maintenance • Procurement

• Guarantee claims New! • Hull inspections New!

• Projects (Dry docking) New! • Document management • Safety management • Risk management • Reviews and Improvements

• Self assessment (TMSA)• Vetting New! • Operations

• Crew/HR management• Payroll • Accounting

• Report generator• KPI Dashboard

Per Steinar UpsakerManaging Director and CEO, BASS

BASSnetTM

is a modular software that enables you to build one, integrated solution covering all main areas of maritime operations. When modules are served by one central database you can enter data once and reuse it in one process after the other.

September 2010 3

Inform Vessel, Supt., Agentand Local Operations dept.

Vetting AuthorityOperations

Superintendent

Inspection and approval processPlanning process

Vetting Planning input

– Vessel age– Cargo type– Flash point– Last vetting date– Vetting requirements– Voyage conditions– Crew matrix Vessel

Con�rmdate & place

Replanning

Obtainapproval

Accept/rejectRe-propose

RequestVetting

Pre-Vetting Self Assessment

Close Pre-Vetting issues

Complete actual Vetting

Vessel report onboard replicated to o�ce

O�ce enter owners commentsfrom previous refererences

Update CDI/SIRE database.Generate letters/reports to third party

COvER STORy

The vetting inspection process for tanker and gas carriers is indeed time and resource intensive. It involves substantial planning and effective execution across ship fleets to achieve and maintain ap-provals from oil majors and charterers. While the vetting process increases the administrative burden on shipowners and ship managers, commercial implica-tions can be severe for companies failing to meet vetting requirements. By utilis-ing BASSnet’s new Vetting module, ship managers and owners can emerge with vessels that are perfectly suited both for ever-changing regulations and assign-ments with the industry’s leading lights.

The scheduling of oil major vetting – which normally takes place 2–3 times per year – is a main area of focus for shipowners and ship managers in order to obtain the necessary approvals, but this is the mere tailend of the entire process. Before this, they also need to commit great resources to vetting inspection preparation. This re-quires extensive knowledge of the vessel’s state of affairs, vessel requirements, crew, operational procedures, and the shore-based organisation.

Vetting follows port control inspection lead There are no signs that the vetting process will become any easier for shipowners and ship managers, either. In fact, quite the opposite. According to the Paris Memorandum of Understanding (MoU) on Port State Control

inspection database, there were a total of 1923 inspections carried out on 1491 tankers in 2009, with 741 inspections with deficiencies reported. Additionally, the Port State Control Committee of the MoU group – which entails a total of 27 European maritime administrations – adopted a new inspection regime in May 2010 which will come into force in January 2011.

While these inspections aren’t directly tied to the vetting carried out by oil majors, the results and changes here will work their way into stricter and more demanding vetting inspections. After all, no oil major wants a situation at a port that causes undue costs or delays.

The bottom line Charterer decisions to select a ship for commercial use are based on a variety of criteria, but vetting results always appear towards the top of the list. Vessel results here strongly tie in with earnings potential on the time charter market. Indeed, accord-ing to industry insiders, vessels without vetting approvals from oil majors may lose several thousand dollars per day on the time charter market – which adds up to at least 20 percent less earnings per day than ves-sels approved by oil majors.

“While it can be a real headache for shipowners to obtain and maintain vetting approvals from oil majors, the consequence of failing such a vetting in terms of lost trade and revenue opportunities

is exponentially worse,” says Haakon Dalan, BASS General Manager of Product Management & Marketing. “Vetting has become such a complicated puzzle, though, that it’s no longer possible to plan and manage it without help. A proper software system like the BASSnet Vetting module can go a long way towards keeping track of and putting all of the details in place.”

Therefore, it’s fair to say that the utilisa-tion of a comprehensive and user-friendly system like BASSnet can very easily mean the difference between a vessel with full approval and one earning 20 percent less on the time charter market.

Vetting in BASSnetThe Vetting module is a new addition in the BASSnet software. The new and unique process-driven solution – which is only ap-plicable for tankers – covers the end-to-end process of a vetting inspection for various tanker types.

“Vetting in BASSnet allows shipowners and ship managers to plan vetting inspections, select the oil major that will be carrying out the vetting inspection, carry out an initial self-assessment of the vessel, and then enter the observations that resulted from the actu-al vetting inspections,” says Rajesh Purkar, BASS Head of Product Management. “At the click of a button, owner comments on vetting observations can be directly up-loaded to the SIRE (Ship Inspection Report) database utilised by all OCIMF members to

Emerging victorious from the vetting process

3

www.say.biz

Inform Vessel, Supt., Agentand Local Operations dept.

Vetting AuthorityOperations

Superintendent

Inspection and approval processPlanning process

Vetting Planning input

– Vessel age– Cargo type– Flash point– Last vetting date– Vetting requirements– Voyage conditions– Crew matrix Vessel

Con�rmdate & place

Replanning

Obtainapproval

Accept/rejectRe-propose

RequestVetting

Pre-Vetting Self Assessment

Close Pre-Vetting issues

Complete actual Vetting

Vessel report onboard replicated to o�ce

O�ce enter owners commentsfrom previous refererences

Update CDI/SIRE database.Generate letters/reports to third party

share inspection data. The system also ena-bles shipowners and managers to keep track of approvals and validity periods given by other oil majors based on recent vetting inspections that were carried out.”

Dalan sees a number of tangible rewards stemming from the new Vetting submodule feature. “The structured self-assessment feature identifies and resolves outstanding issues prior to vetting inspections, reducing the number of overall observations and vet-ting rejections,” he says. “Additionally, the Vetting module lowers costs by reducing the number of crisis incidents, resulting in better safety management onboard, and de-creases insurance premiums. All of this not only adds up to an improved bottom line, but also an improved market reputation for shipowners and managers.” •

Celebrating with bubbly The new Vetting module – along with the rest of BASSnet Fleet Management Systems version 2.7 – will be showcased during a pre-release launch in connection with the SMM exhibition in Hamburg, Germany from September 7–10. Not only will there be presentations of the new module and system at BASS’ stand at SMM (B6 570), but the event will also serve as the backdrop for the BASSnet 2.7 pre-release party and champagne reception taking place on Thursday, September 9 at 13:00 hours. All shipowners, ship managers and business associates are invited to the reception.

BASSnet Vetting module highlights

• Fleetwide overview of oil major approvals and time for renewed vetting to maintain approvals

• Planning for vetting inspections across the fleet based on vessel schedule or position in order to save costs and time for inspections

• Planning and coordinating pre-vetting preparations and vetting inspections among all departments within the shore-based staff, ship and inspecting authority

• Statistics and log of all observations/deficien-cies to utilise with regards to organisational learning and fleetwide improvements

• Ensuring continuous standard compliance

• Accommodating industry changes and oil major requirements

• Ensuring better-prepared vessels through viewing the oil major’s requirements matrix and performing self-assessment per company norms and industry requirements before the inspection is carried out

• Improving ship-shore communication as all vetting inspection observations can be easily viewed in the system

• Export owner comments directly to the SIRE database utilised by all OCIMF members to share inspection data in real-time

• Reporting and rectifying observations given during the vetting inspection, as BASSnet Maintenance jobs can be created directly from the SAFIR module

• Tracking requests sent to other oil majors for approval based on recent vetting inspec-tions, and updating approvals from other oil majors in the planner

• New KPIs help to easily track progress with regards to audits, vetting inspections and monitoring overall fleet performance

Vetting inspections

A vetting inspection is an in-depth ship assessment conducted to critically analyse the vessel’s past and current safety and quality systems onboard. Vetting inspections also provide an opportunity to examine the quality of ship operators, managers and owners. Vetting in its current form first appeared in 1993, when the Ship Inspection Report (SIRE) database was created for use by oil companies/OCIMF members. Oil majors perform inspections according to a standard report format developed by the OCIMF, with inspection results shared via the joint SIRE database. These oil major inspections have a huge commercial impact, enabling charterers to optimise vessel selection by matching available vessels to voyage operational and commercial requirements– thereby maximising efficiency.

The key focus of vetting inspections remains to increase safety at sea and to decrease pollution incidents. The broader perspective of ship vetting includes the following:

• Analysing ship compliance with relevant legislation, standards and laws

• Assessing ship systems for their readiness and response to an emergency situation. Emphasis is placed on reducing the number of oil pollution incidents, as such events are detrimental to the goodwill of oil majors and result in enormous financial responsibilities

• Promoting an environment for the creation of ship safety management system standards across the industry, leading to increased safety awareness onboard ships

• Reducing the risk of explosion and/or fire and ensuing damages for the terminal installation and its surroundings

• Ensuring that substandard ships are identified. There are many implications if the cargo is damaged or lost due to substandard vessels, owners, operators or managers. Risks stemming from substandard ships include:- Undue delays and costs while at port- Falling foul of regulators - Rising insurance costs - Casualties – from delays through to total loss

– which carry severe commercial, human and environmental costs

Sources: IGNOU/Wikipedia

September 2010 4

September 20105

MARITIME FEATURE

Merchant vessels are becoming larger and more complex at the same time as freight rates are dropping and world trade vol-umes are sliding. This makes it more im-portant than ever for shipowners and ship managers to “run a tight ship”. A central tenet in bringing this about is getting crew to fully utilise the IT systems onboard.

Upgrading to a modern maritime software system has a great number of benefits across the board for vessel owners, managers and crew alike – from reducing processing costs and providing real-time information on voy-age conditions to better informed decision-making and reporting, systematic documen-tation and centralised data.

Along with an increase in average vessel crew age and the ongoing acute global short-age of qualified crew, there are additional reasons as to why crew may resist the adop-tion of IT systems, according to Mark Ravi, BASS’ Head of Sales in the Asia Pacific: “In many cases, the crew may already be comfortable with current work processes and have carried out tasks in the same manner for years. They may also have concerns about the capability of IT systems – including the perception that implementation takes a huge amount of time, worries over the creation of additional work tasks, and security issues.”

Ravi doesn’t discount the fact that certain vessels and crew may already have manual systems in place that function properly for them. But there are undoubtedly ways of

working smarter and more efficiently in terms of both time and finances through the help of modern maritime software. On top of this, if maritime software systems are implemented correctly and the proper train-ing is provided, then they can go a long way towards empowering the crew.

“By implementing a bold training structure, creating short-term victories for the crew during the training process, and building a self-awareness that the new software will actually improve their jobs rather than destroy them, crew will buy in to the new maritime software,” says Ravi. •

Overcoming crew resistance to IT systems

According to BASS Asia Pacific sales head Mark Ravi, getting crew up to speed on maritime IT systems and helping them embrace the systems can go without a hitch, provided that the process is taken seriously and handled properly. Some of the areas that he stresses the importance of in this regard include:

• Align corporate, IT and HR strategies– Good systems aren’t implemented overnight, so it’s imperative to invest in long-term plans– Increasing investment in a reliable system can result in huge potential savings, help generate profits and increase staff retention rates

• Showcase the benefits of an integrated IT solution – An advanced IT system offers a wide range of benefits over manual work– Show the crew that utilisation of the technology will reduce their workload– Help crew see how the maritime software system provides a financial return on investment

• Invest time and money into training and competency development– Evaluate crew training needs – Develop efficient competency and training solutions – Provide dedicated training facilities – Monitor competence (knowledge, skills and attitude) to match with the right courses

• Provide simple tools for the crew to learn from – These tools should include computer-based training and interactive help files

• Provide crew with reward/compensation– Crew that are willing to accept and learn IT systems can be provided with a reward or some sort of compensation. If they buy in at an early stage, then it’s easier for them to become vested in the product/project

• Build a proactive community – By giving crew the ability to manage their own data in the maritime software system, they’ll help foster a culture that brings other crew members into the fold

Getting crew up to speed

September 2010 6

In April 2010, BASS was named the winner of the Frost & Sullivan Marine Software Provider of the Year Best Practices Award in the Asia Pacific Region. The company was selected over a number of other major maritime soft-ware players due to attributes including financial performance, market share, technological innovation, product devel-opment roadmap, competitive advan-tage and value-added services.

BASS was among the award recipients recognised by Frost & Sullivan at the recent awards ceremony at the InterConti-nental hotel in Singapore. “The recipients honoured at tonight’s banquet have proven their extraordinary business capabilities by withstanding one of the most challenging economic periods of our time,” said Frost & Sullivan partner Nitin Bhat.

Gopal R, the Vice President for the Transportation & Logistics Practice, Asia Pacific at Frost & Sullivan said that 2009 was a challenging year for the industry due to a decline in logistics expenditures. “However, we have seen remarkable per-formances from some transportation and logistics companies that have managed to

weather the storm and emerge stronger. Today, we honour those companies that have shown resilience and exemplary achievements during the crisis,” he said. Gopal R. also stated that that a common factor among all of the award recipients is their outstanding commitment to their clients. “They have all reacted quickly to accommodate their customers’ needs and preferences,” he added.

“We have demonstrated value and have been recognised for our maritime industry excellence,” says Rajesh Purkar, BASS Head of Product Management. “The last few years have been very success-ful for BASS and this award represents our achievement in product and market channel strategies. We believe that our wide scope of integrated products and continuous innovation are paramount for the servicing of large and complex vessel technical operations.”

The Frost & Sullivan Awards are pre-sented to companies that demonstrate best practices in their industry, commending the diligence, commitment, and innovative business strategies required to advance in the global marketplace. •

Upcoming Events

SMM HaMburgDate: September 7–10, 2010Venue: International Trade Fair, Hamburg

Visit BASS at stand B6.570 and make an appointment to view our demos. For more event information visit :www.hamburg-messe.de/smm/smm_en

baSS CuStoMer ForuMDate: October 19–20, 2010 Venue: Sheraton Towers, Singapore

Register now at www.bassnet.no to attend our product workshops.

Sea aSia 2011Date: April 12–14, 2011 Venue: Marina Bay Sands, Singapore

For more information about this event, visit www.sea-asia.com

Please visit www.bassnet.no for the latest details.

Europe/Americas: BASS AS Lysaker Torg 8, P.O. Box 68, 1324 Lysaker, Norway • Tel: +47 67 10 55 20Asia/Pacific: BASS Sdn Bhd 19th Floor Menara Atlan • 161B Jalan Ampang • 50450 Kuala Lumpur, Malaysia • Tel: +603 2173 6488 • Support tel: +603 2173 6422HQ: BASS Software Ltd. Atalanti House, 6th Floor • 203 Christodoulou Chatzipavlou • 3035 Limassol,Cypruscontact@bassnet.no • www.bassnet.no

- BASS offices- BASS events or trade shows where BASS will appear

Above: BASS Regional Manager Sales, Alan Tai and BASS Head of Product Management, Rajesh Purkar receiving the award on behalf of the company. Right: A group picture of all the award recipients.

BASS takes home prestigious Frost & Sullivan prize

BEST PRACTICE AWARD