National Express LLC--Acquisition of Control--Queen City Transportation, LLC |
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Topics: National Express, Queen City Transportation
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Tammy Lowery
Surface Transportation Board
9 November 2017
[Federal Register Volume 82, Number 216 (Thursday, November 9, 2017)]
[Notices]
[Pages 52091-52094]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-24429]
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SURFACE TRANSPORTATION BOARD
[Docket No. MCF 21078]
National Express LLC--Acquisition of Control--Queen City
Transportation, LLC
AGENCY: Surface Transportation Board.
ACTION: Notice tentatively approving and authorizing finance
transaction.
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SUMMARY: On October 13, 2017, National Express LLC (National Express or
Applicant), a noncarrier, filed an application under to acquire control
of Queen City Transportation, LLC (Queen
[[Page 52092]]
City). 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.
DATES: Comments must be filed by December 26, 2017. Applicant may file
a reply by January 8, 2018. If no opposing comments are filed by
December 26, 2017, this notice shall be effective on December 27, 2017.
ADDRESSES: Send an original and 10 copies of any comments referring to
Docket No. MCF 21078 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., 10 W. Market Street, Suite 1400,
Indianapolis, IN 46204.
FOR FURTHER INFORMATION CONTACT: Nathaniel Bawcombe (202) 245-0376.
Federal Information Relay Service (FIRS) for the hearing impaired: 1-
800-877-8339.
SUPPLEMENTARY INFORMATION: Applicant, a noncarrier, states that it is a
holding company organized under the laws of the state of Delaware that
is indirectly controlled by a British corporation, National Express
Group, PLC (Express Group). Applicant states that Express Group
indirectly controls the following passenger motor carriers
(collectively, National Express Affiliated Carriers): Beck Bus
Transportation Corp. (Beck); Carrier Management Corporation, d/b/a
Matthews Bus Company (CMI); Diamond Transportation Services, Inc.
(Diamond); Durham School Services, L.P. (Durham); MV Student
Transportation, Inc. (MV); National Express Transit Corporation (NETC);
National Express Transit Services Corporation (NETSC); National Express
Transit--Yuma (NETY); Petermann Ltd. (Petermann); Petermann Northeast
LLC (Northeast); Petermann Northwest LLC (Northwest); Petermann
Southwest LLC (Southwest); Petermann STSA, LLC (STSA); The Provider
Enterprises, Inc. (Provider); Rainbow Management Service Inc.
(Rainbow); Robertson Transit, Inc. (Robertson); Safeway Training and
Transportation Services Inc. (Safeway); Septran, Inc. (Septran); Smith
Bus Service, Inc. (Smith); Suburban Paratransit Service, Inc. (Suburban
Paratransit); Trans Express, Inc. (Trans Express); Trinity, Inc.
(Trinity); Trinity Cars, Inc. (Trinity Cars); Trinity Coach LLC
(Trinity Coach); Trinity Student Delivery LLC (Trinity Student); and
White Plains Bus Company, Inc., d/b/a Suburban Charters (White Plains).
Applicant asserts the following facts regarding the National
Express Affiliated Carriers held by Express Group:
Beck is a passenger motor carrier primarily engaged in
providing student school bus transportation services in the state of
Illinois under contracts with regional and local school jurisdictions.
Beck also provides charter passenger services to the public. It holds
interstate carrier authority from Federal Motor Carrier Safety
Administration (FMCSA) under MC-143528.
CMI is a passenger motor carrier doing business as
Matthews Bus Company and is primarily engaged in providing student
school bus transportation services in the state of Pennsylvania under
contracts with regional and local school jurisdictions. CMI also
provides intrastate charter passenger services to the public. CMI does
not have interstate carrier authority as it is not required for the
operations conducted by CMI.
Diamond is a passenger motor carrier providing exempt
interstate and regulated intrastate paratransit and shuttle services in
the District of Columbia metropolitan area. It does not have interstate
carrier authority.
Durham is a passenger motor carrier primarily engaged in
providing student school bus transportation services in several states
under contracts with regional and local school jurisdictions. Durham
also provides charter passenger services to the public. It holds
interstate carrier authority under MC-163066.
MV is a passenger motor carrier primarily engaged in
providing student school bus transportation services in the state of
Illinois under contracts with regional and local school jurisdictions.
MV also provides charter passenger services to the public. It holds
interstate carrier authority under MC-148934.
NETC is an intrastate passenger motor carrier with its
principal place of business in Cincinnati, Ohio. NETC does not have
interstate carrier authority.
NETSC is a passenger motor carrier engaged primarily in
providing intrastate transit services in the areas of Westmoreland,
Pa.; Arlington, Va.; Greensboro, N.C.; Jackson, Miss.; Orlando, Fla.;
and Vallejo, Cal. NETSC does not have interstate carrier authority as
it is not required for the operations conducted by NETSC.
NETY is a passenger motor carrier primarily engaged in
providing interstate paratransit services in the area of Yuma, Ariz. It
holds interstate carrier authority under FMCSA Docket No. 960629.
Petermann is a passenger motor carrier primarily engaged
in providing non-regulated school bus transportation services in the
state of Ohio under contracts with regional and local school
jurisdictions. Petermann also provides charter passenger services to
the public. It holds interstate carrier authority under MC-364668.
Northeast is a passenger motor carrier primarily engaged
in providing student school bus transportation services, primarily in
the states of Ohio and Pennsylvania under contracts with regional and
local school jurisdictions. Northeast also provides charter passenger
services to the public. It holds interstate carrier authority under MC-
723926.
Northwest is a passenger motor carrier primarily engaged
in providing non-regulated school bus transportation services under
contracts with regional and local school jurisdictions. Northwest does
not have interstate carrier authority as it is not required for the
operations conducted by Northwest.
Southwest is a passenger motor carrier primarily engaged
in providing student school bus transportation services in the state of
Texas under contracts with regional and local school jurisdictions.
Southwest also provides charter passenger services to the public. It
holds interstate carrier authority under MC-644996.
STSA is a passenger motor carrier primarily engaged in
providing student school bus transportation services, primarily in the
state of Kansas under contracts with regional and local school
jurisdictions. STSA also provides charter passenger services to the
public. It holds interstate carrier authority under MC-749360.
Provider is a passenger motor carrier doing business as
Provider Bus, and is primarily engaged in providing non-regulated
school bus transportation services in the state of New Hampshire under
contracts with regional and local school jurisdictions. Provider does
not have interstate carrier authority as it is not required for the
operations conducted by Provider.
Rainbow provides interstate and intrastate charter and
special party passenger transportation services in the state of New
York. It holds interstate carrier authority under MC-490015.
Robertson is a passenger motor carrier primarily engaged
in providing non-regulated school bus transportation services in the
state of New Hampshire under contracts with regional and local school
jurisdictions. Robertson also provides charter passenger service to the
public. It does not have active interstate
[[Page 52093]]
carrier authority, though MC-176053 is assigned to it.
Safeway is a passenger motor carrier primarily engaged in
providing non-regulated school bus transportation services in the state
of New Hampshire under contracts with regional and local school
jurisdictions. It does not have active interstate carrier authority,
though MC-522039 is assigned to it.
Septran is a passenger motor carrier primarily engaged in
providing non-regulated school bus transportation services in the state
of Illinois under contracts with regional and local school
jurisdictions. It does not have active interstate carrier authority,
though MC-795208 is assigned to it.
Smith is a passenger motor carrier primarily engaged in
providing non-regulated school bus transportation services in the state
of Maryland and surrounding areas under contracts with regional and
local school jurisdictions. Smith does not have interstate carrier
authority as it is not required for the operations conducted by Smith.
Suburban Paratransit is a motor carrier providing
paratransit services primarily in Westchester County and Bronx, N.Y.
Suburban Paratransit does not have interstate carrier authority as it
is not required for the operations conducted by Suburban Paratransit.
Trans Express provides interstate and intrastate passenger
transportation services in the state of New York. It holds interstate
carrier authority under MC-187819.
Trinity is passenger motor carrier engaged in providing
non-regulated school bus transportation services in southeastern
Michigan, and also operates charter service to the public. Trinity
holds interstate carrier authority under MC-364003.
Trinity Cars is an intrastate passenger motor carrier
providing for-hire sedan and van service in southeastern Michigan. It
does not have active interstate carrier authority, though MC-632139 is
assigned to it.
Trinity Coach is a passenger motor carrier providing
intrastate private and charter motor coach services in the state of
Michigan. It does not have active interstate carrier authority, though
MC-537169 is assigned to it.
Trinity Student is a passenger motor carrier primarily
engaged in providing non-regulated school bus transportation services
in the areas of Toledo and Cleveland, Ohio. Trinity Student also
provides charter passenger services. It holds interstate carrier
authority under MC-836335.
White Plains is a passenger motor carrier doing business
as Suburban Charters, and it operates primarily as a provider of non-
regulated school bus transportation services in the state of New York.
White Plains also operates as a motor passenger carrier providing
charter service to the public. It holds interstate carrier authority
under MC-160624.
Applicant asserts the following facts about Queen City:
Queen City is an Ohio limited liability company. It
operates primarily as a provider of non-regulated school bus
transportation services in the area of Cincinnati, Ohio. Queen City
also provides interstate and intrastate charter services under the
assumed names, Charter Bus Services and Klug Bus Services. For purposes
of its interstate passenger operations, it holds interstate carrier
authority under MC-163846.
Applicant states that all of the issued and outstanding membership
interest of Queen City is owned and held by Haid Acquisitions LLC
(Seller), an Ohio limited liability company, of which Aaron M. Haid, an
individual, is the sole member. Applicant further states that neither
the Seller nor Mr. Haid has any direct or indirect ownership interest
in any other interstate passenger motor carrier and that Queen City is
not affiliated with any other passenger carriers that have interstate
operating authority.
Applicant asserts that National Express would acquire all of the
outstanding membership interest in Queen City, resulting in 100%
control of Queen City through the membership acquisition. Applicant
further states that, other than the National Express Affiliated
Carriers and Queen City, there are no other affiliated carriers with
regulated interstate operations that are involved in this application.
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 submitted information, as required by 49 CFR
1182.2, including information to demonstrate that the proposed
transaction is consistent with the public interest under 49 U.S.C.
14303(b), see 49 CFR 1182.2(a)(7), and a statement that the aggregate
gross operating revenues of the National Express Affiliated Carriers
and Queen City exceeded $2 million for the preceding 12-month period
consistent with 49 U.S.C. 14303(g), see 49 CFR 1182.2(a)(5).
Applicant submits that the proposed transaction would have no
material impact on the adequacy of transportation services to the
public, as Queen City would continue to provide the services it
currently provides using the same names. Applicant states that Queen
City ``will continue to operate, but going forward, will be operating
within the National Express corporate family, an organization already
thoroughly experienced in passenger transportation operations.'' (Appl.
14.)
According to Applicant, ``[t]he addition of Queen City to the
carriers held by National Express is consistent with the practices
within the passenger motor carrier industry of strong, well-managed
transportation organizations adapting their corporate structure to
operate several different passenger carriers within the same market,
but in different geographic areas.'' (Id.) Applicant asserts that Queen
City is experienced in some of the same market segments already served
by some of the National Express Affiliated Carriers. Applicant expects
the transaction to result in operating efficiencies and cost savings
derived from economies of scale, all of which, Applicant states, would
help to ensure the provision of adequate service to the public. (Id.)
Applicant further asserts that bringing Queen City within the National
Express corporate family would serve to enhance the viability of the
overall organization and the operations of the National Express
Affiliated Carriers, which would ensure the continued availability of
adequate passenger transportation service for the public. (Id.)
Applicant also claims that neither competition nor the public
interest would be adversely affected by the contemplated transaction.
Applicant states that Queen City is ``a relatively small carrier in the
overall markets in which it competes: unregulated metropolitan school
bus operations and regulated motor coach passenger charter services.''
(Id. at 16.) Applicant states that, with respect to Queen City's school
bus operations, it competes directly with First Student, Inc., and
other school bus service providers in the Cincinnati metropolitan area.
It further explains that there are a number of motor coach passenger
charter services in the Cincinnati metropolitan area, resulting in a
very competitive market. (Id.) Applicant also explains that there is
limited overlap in service areas and/or in customer bases among the
National Express Affiliated Carriers and Queen City. (Id.) Thus,
Applicant states that the impact of the contemplated transaction on the
regulated motor carrier industry would be minimal at most and that
neither competition nor
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the public interest would be adversely affected.
Applicant asserts that there are no significant fixed charges
associated with the contemplated transaction. Applicant also states
that it does not anticipate a measurable reduction in force or changes
in compensation levels or benefits to employees. Applicant submits,
however, that staffing redundancies could result in limited downsizing
of back-office or managerial level personnel.
The Board finds that the acquisition proposed in the application 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.
This action is categorically excluded from environmental review
under 49 CFR 1105.6(c).
Board decisions and notices are available on our Web site at
``WWW.STB.GOV''.
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 December 27, 2017, unless opposing
comments are filed by December 26, 2017.
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: November 3, 2017.
By the Board, Board Members Begeman and Miller.
Tammy Lowery,
Clearance Clerk.
[FR Doc. 2017-24429 Filed 11-8-17; 8:45 am]
BILLING CODE 4915-01-P