Company News

Industry Veterans Launch SP Vessel Services

At a time when inland operators are entering the last two years of the first complete cycle to comply with Subchapter M timelines, they now have a new partner to help them achieve top outcomes, while minimizing costs. A new compliance company, SP Vessel Services, has just launched. Co-founders Pat Smith and Michael Cortese have, between them, about 75 years of industry experience in regulatory affairs, operations and compliance.

“Our goal is to keep transportation systems moving,” Smith said.

Smith has a long, multifaceted history in the maritime industry. He “fell in love” with the industry as a child, when visiting the icebreaker captained by his Coast Guard father. During his 11 years at American Commercial Barge Line, he managed the regulatory compliance and vetting program for more than 130 vessels and 4,000 barges. Smith’s time at ACBL, he said, was a “phenomenal opportunity,” during which the company reduced its audit non-conformities by 90 percent and bested the industry performance standard for Coast Guard COI (Certificate of Inspection) examinations by 300 percent.

He has also served as chairman of the board for the Towing Vessel Inspection Bureau (TVIB), one of the largest third-party organizations (TPOs) for the inland towing industry.

As a Coast Guard officer, Smith supervised nine commands with more than 350 personnel as chief of response of Sector Houston-Galveston. He estimates he experienced 50 hurricanes during his varied tenure, including Harvey and Ike.

Cortese is also a Coast Guard veteran, having recently completed a 21-year career, during which he served at several training centers and in command positions at small boat stations and sectors. His last tour of duty was as chief of response for one of the largest Coast Guard sectors. His areas of expertise include response plans, operations and security for emergency response vessels and facilities. He has a master’s degree in instructional systems design.

A big part of Smith’s experience includes having worked closely with oil companies. One service offered by SP is a SIRE pre-inspection, a comprehensive assessment of a vessel’s condition and operational practices. It’s designed to help shipowners and operators identify potential deficiencies and ensure their vessel meets the stringent standards of the SIRE program, particularly relevant for the oil, chemical and gas tanker industries.

“I was impressed with how oil companies conducted their audits,” he said. “They were not afraid to have candid discussions about non-conformities and lessons learned from past failures. They were very collaborative and insightful.”

It’s no surprise, then, that the suite of services that SP offers “covers the waterfront.” It’s customizable to suit the client’s needs, from tankerman preparation to external or internal vessel audits and surveys, drydock/ internal structural examination support, COI package preparation or CG-835V support, including appeals.

Technology And safety

SP Vessel Services is partnering with TowWorks. Cortese said, “Technology has significantly enhanced training to save lives. TowWorks has completely changed the compliance side of the house.”

SP can customize TowWorks’ software for a tailored solution. Smith and Cortese are keeping an eye on any technology that can make an impact; SP Vessel Services has recently entered discussions with a company to prototype a virtual reality system for training maritime personnel, Cortese said.

Compliance, Smith says, is something that should be fully integrated with operations, meaning it’s a constant, 24/7 activity. TowWorks’ data programs can help companies detect patterns and red flags and head off nonconformities before they happen.

Right now, he told The Waterways Journal, inland companies are occupied with drydock inspections as the industry is 60% complete with the first five-year cycle. “We expected somewhere between 5,500 and 5,700 of vessels to obtain a COI, but only 4,700 vessels have reached this goal. This is due to an aging industry fleet and the high cost of steel prices.”

Companies like SP Vessel Services can ease a lot of the compliance burden, especially for smaller outfits, Smith said. “We can address one thing or 10 things. It just depends on the needs of the company.”