[Federal Register Volume 80, Number 84 (Friday, May 1, 2015)]
[Notices]
[Pages 25007-25008]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-10209]
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DEPARTMENT OF TRANSPORTATION
Surface Transportation Board
[Docket No. MCF 21063]
National Express Transit Corporation--Acquisition of Control--
Trans Express, Inc., and Rainbow Management Service Inc.
AGENCY: Surface Transportation Board.
ACTION: Notice Tentatively Approving and Authorizing Finance
Transaction.
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SUMMARY: National Express Transit Corporation (NETC or Applicant) has
filed an application under 49 U.S.C. 14303 to acquire control of Trans
Express Inc. (Trans Express) and Rainbow Management Service Inc.
(Rainbow) (together, Acquisition Carriers). The Board is tentatively
approving and authorizing the transaction and, if no opposing comments
are timely filed, this notice will be the final Board action. Persons
wishing to oppose the application must follow the rules at 49 CFR
1182.5 and 1182.8.
DATES: Comments must be filed by June 15, 2015. Applicant may file a
reply by June 30, 2015. If no comments are filed by June 15, 2015, this
notice shall be effective on June 16, 2015.
ADDRESSES: Send an original and 10 copies of any comments referring to
Docket No. MCF 21063 to: Surface Transportation Board, 395 E Street
SW., Washington, DC 20423-0001. In addition, send one copy of comments
to Applicant's representative: Andrew K. Light, Scopelitis, Garvin,
Light, Hanson & Feary, P.C., Suite 1500, 10 W. Market Street,
Indianapolis, IN 46204.
FOR FURTHER INFORMATION CONTACT: Amy Ziehm, (202) 245-0391. Federal
Information Relay Service (FIRS) for the hearing impaired: 1-800-877-
8339.
SUPPLEMENTARY INFORMATION: NETC is an intrastate motor carrier of
passengers incorporated under the laws of Delaware. NETC, which does
not have interstate authority from the Federal Motor Carrier Safety
Administration (FMCSA), is held directly by National Express LLC
(NELLC), a Delaware limited liability company. NELLC, in turn, is
indirectly controlled by a British corporation, National Express Group,
PLC (Express Group). Express Group
[[Page 25008]]
also indirectly controls the following interstate and intrastate motor
carriers of passengers: A&E Transport Services, Inc. (MC-319820); Beck
Bus Transportation Corp. (Beck) (MC-43528); Carrier Management Inc.
(CMI); Community Transportation Inc. (Community); Durham School
Services, L.P. (Durham) (MC-163066); MV Student Transportation Inc.
(MV) (MC-148934); National Express Transit Services Corporation
(NETSC), Petermann Ltd. (LTD) (MC-364668); Petermann Northeast LLC
(Northeast) (MC-723926); Petermann Northwest LLC (Northwest); Petermann
Southwest LLC (Southwest) (MC-644996); Petermann STSA, LLC (STSA) (MC-
749360); Vogel Bus Company Inc. (MC-274520); and Stock Transportation
Ltd. Of these companies, all but Community and NETSC provide school bus
transportation services.\1\ Community provides intrastate transit
services in Pennsylvania and NETSC provides intrastate transit services
in the areas of Westmoreland, Pa., Arlington, Va., Greensboro, N.C.,
Vallejo, Cal., and Yuma, Ariz. In addition to school bus services,
Beck, CMI, Durham, MV, LTD, Northeast, Southwest, and STSA also provide
charter passenger services to the public.
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\1\ The application does not describe the operations of
Northwest.
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The Acquisition Carriers, both motor carriers of passengers, are
New York corporations. Trans Express holds interstate authority from
FMCSA (MC-187819) and provides point-to-point intrastate passenger
service between the Boroughs of Brooklyn and Manhattan in New York,
utilizing 40 vehicles consisting of 28 owned buses and 12 trip-leased
motor coaches. Rainbow also holds a FMCSA license (MC-490015) and
provides interstate and intrastate charter and special party passenger
transportation services in New York City and the State of New York and
also holds intrastate authority from the New York Department of
Transportation. Rainbow utilizes 16 vehicles consisting of one motor
coach and 15 mini-buses. Mary Rubino and Christina Rubino hold all of
the issued and outstanding stock of the Acquisition Carriers.
Applicant states that the proposed transaction would place the
Acquisition Carriers under the control of NETC. The proposed
transaction contemplates that NETC would assume 100 percent control of
the Acquisition Carriers through stock ownership. Applicant states that
after the transaction, the Acquisition Carriers would continue to
provide services under the same names, but would be operated within the
NETC corporate family. Applicant asserts that NETC is experienced in
the passenger service markets already served by NETC and some of its
affiliated carriers.
Under 49 U.S.C. 14303(b), the Board must approve and authorize a
transaction that it finds consistent with the public interest, taking
into consideration at least: (1) The effect of the proposed transaction
on the adequacy of transportation to the public; (2) the total fixed
charges that result; and (3) the interest of affected carrier
employees. Applicant has submitted information, as required by 49 CFR
1182.2, including the information to demonstrate that the proposed
transaction is consistent with the public interest under 49 U.S.C.
14303(b), and a statement that NETC's aggregate gross operating
revenues exceeded $2 million for the preceding twelve-month period, see
49 U.S.C. 14303(g).
Applicant submits that the proposed transaction would not have a
material, detrimental impact on the adequacy of transportation services
to the public, but would improve services to the public. Applicant does
not intend to change the operations of the Acquisition Carriers and
would operate them within the NETC corporate family, which, it states,
would enhance the overall viability of the carriers within the
corporate family. Applicant anticipates that the proposed transaction
would result in operating efficiencies and cost savings derived from
economies of scale, which would help ensure adequate service to the
public. With respect to fixed charges, Applicant states that there are
no fixed charges associated with the proposed transaction. Applicant
states that the proposed transaction would not have a substantial
impact on employees, as NETC does not anticipate a measurable reduction
in force or compensation levels. However, according to Applicant,
staffing redundancies could potentially result in limited downsizing of
back-office and/or managerial level personnel.
Applicant further asserts that the proposed transaction would not
adversely affect competition or the public interest. Applicant claims
that the Acquisition Carriers are relatively small carriers in the
overall markets in which they compete--intrastate point-to-point
passenger service, interstate and intrastate charter passenger service,
and special party passenger service. Applicant further states that the
affiliated carriers that operate school buses occupy a limited portion
of the charter business because the equipment is not as comfortable as
motor coaches and the scheduling demands imposed by school bus
operations constrains services that could be offered. Applicant asserts
that the charter operations offered by NETC and its affiliates are
geographically dispersed and there is little overlap in service areas
among NETC, its affiliates, and the Acquisition Carriers. Applicant
notes the Board's findings in other cases that ease of entry into the
motor carrier market results in competition in the motor carrier
industry as well as competition from other modes of transportation.
On the basis of the application, the Board finds that the proposed
acquisition of control is consistent with the public interest and
should be tentatively approved and authorized. If any opposing comments
are timely filed, these findings will be deemed vacated, and, unless a
final decision can be made on the record as developed, a procedural
schedule will be adopted to reconsider the application. See 49 CFR
1182.6(c). If no opposing comments are filed by the expiration of the
comment period, this notice will take effect automatically and will be
the final Board action.
Board decisions and notices are available on our Web site at
``WWW.STB.DOT.GOV''.
This decision will not significantly affect either the quality of
the human environment or the conservation of energy resources.
It is ordered:
1. The proposed transaction is approved and authorized, subject to
the filing of opposing comments.
2. If opposing comments are timely filed, the findings made in this
notice will be deemed vacated.
3. This notice will be effective June 16, 2015, unless opposing
comments are filed by June 15, 2015.
4. A copy of this notice will be served on: (1) The U.S. Department
of Transportation, Federal Motor Carrier Safety Administration, 1200
New Jersey Avenue SE., Washington, DC 20590; (2) the U.S. Department of
Justice, Antitrust Division, 10th Street & Pennsylvania Avenue NW.,
Washington, DC 20530; and (3) the U.S. Department of Transportation,
Office of the General Counsel, 1200 New Jersey Avenue SE., Washington,
DC 20590.
Decided: April 24, 2015.
By the Board, Acting Chairman Miller and Vice Chairman Begeman.
Kenyatta Clay,
Clearance Clerk.
[FR Doc. 2015-10209 Filed 4-30-15; 8:45 am]
BILLING CODE 4915-01-P