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TBL Group, Inc.--Acquisition of Control--East Coast Transportation Company of North Florida LLC Publication: Federal Register Agency: Surface Transportation Board Byline: Jeffrey Herzig Date: 17 November 2023 Subject: American Government  , Buses
Topics: TBL Group, East Coast Transportation Company of North Florida |
[Federal Register Volume 88, Number 221 (Friday, November 17, 2023)]
[Notices]
[Pages 80374-80375]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-25491]
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SURFACE TRANSPORTATION BOARD
[Docket No. MCF 21112]
TBL Group, Inc.--Acquisition of Control--East Coast
Transportation Company of North Florida LLC
AGENCY: Surface Transportation Board.
ACTION: Notice tentatively approving and authorizing finance
transaction.
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SUMMARY: On October 19, 2023, TBL Group, Inc. (TBL Group or Applicant),
a holding company, filed an application to acquire substantially all of
the business operations and assets of East Coast Transportation Company
of North Florida LLC (East Coast Transportation or Seller). 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 may be filed by January 2, 2024. If any comments are
filed, TBL Group may file a reply by January 16, 2024. If no opposing
comments are filed by January 2, 2024, this notice shall be effective
on January 3, 2024.
ADDRESSES: Comments may be filed with the Board either via e-filing at
www.stb.gov/proceedings-actions/e-filing/other-filings/ or in writing
addressed to: Surface Transportation Board, 395 E Street SW,
Washington, DC 20423-0001. Comments must reference Docket No. MCF
21112. In addition, one copy of comments must be sent to TBL Group's
representative: Barry Lewis, United States Transit Funding, Inc., P.O.
Box 2563, Ormond Beach, FL 32175.
FOR FURTHER INFORMATION CONTACT: Amy Ziehm at (202) 245-0391. If you
require an accommodation under the Americans with Disabilities Act,
please call (202) 245-0245.
SUPPLEMENTARY INFORMATION: According to the application, TBL Group is a
domestic for-profit incorporated entity headquartered in the state of
Texas. TBL Group has been in operation since 2015 and has two wholly
owned subsidiaries, GBJ, Inc. and Echo Tours & Charters LP, which
primarily provide charter, tour, and local intercity and intracity
transportation in the Houston-Dallas-San Antonio, Texas corridor, as
well as the Jacksonville, North Florida market. (Appl. 1-2 (pdf pages
3-4).) According to Applicant, its subsidiaries currently operate 189
commercial motor vehicles in the above-mentioned markets.\1\ (Id. at 2
(pdf page 4).)
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\1\ Additional information about the carriers, including U.S.
Department of Transportation (USDOT) numbers, motor carrier numbers,
and USDOT safety fitness ratings, can be found in the application.
(See Appl. 1-3, 9 (pdf pages 3-5, 11).)
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East Coast Transportation is an S Corporation with its principal
place of business located in the state of Florida. (Id.) According to
the application, East Coast Transportation is federally registered to
provide passenger-carrier motor services and has been in operation for
14 years, providing charter service in Florida and other parts of the
Southeast United States. (Id.) East Coast Transportation operates 23
motorcoaches and currently has no parent, subsidiary, or affiliate
companies. (Id.) TBL Group clarified by letter filed October 30, 2023,
that, through the proposed transaction, Seller intends to transfer 80%
ownership and control of East Coast Transportation to TBL Group, under
the name Echo East Coast Transportation, LLC (Echo East Coast
Transportation), and Robert M. Sobol, Chief Executive Officer of East
Coast Transportation, will hold 20% ownership of the company. (TBL
Group Letter 1, Oct. 30, 2023.)
[[Page 80375]]
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. TBL Group has submitted the information 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 jurisdictional statement under
49 U.S.C. 14303(g) that the aggregate gross operating revenues of TBL
Group and East Coast Transportation exceeded $2 million during the 12-
month period immediately preceding the filing of the application, see
49 CFR 1182.2(a)(5).
TBL Group asserts that the transaction is consistent with the
public interest. TBL Group states that the transaction is not expected
to have a material, detrimental impact on the adequacy of
transportation services available for the public, but rather it
anticipates that public services will be improved as operating
efficiencies will ``enable the carriers to provide service across a
broad geographic area.'' (Appl. 5 (pdf page 7).) With respect to fixed
charges, TBL Group asserts that the restructuring of day-to-day
operations will allow the Applicant to lower operational costs and
continue to provide affordable passenger-carrier transportation
services. (Id. at 7 (pdf page 9).) Further, TBL Group anticipates that
there will be no overall negative impact to employees as a result of
the transaction. According to TBL Group, the transaction will enable
the parties to consolidate some headquarters and administrative
personnel. (Id.) TBL Group, asserts, however, that labor force
additions in higher paying sales and field operations in multiple
cities will offset any personnel contraction across Texas and Florida.
(Id.) TBL Group notes that, ``while the current goal of the transaction
is to maximize utilization with fewer vehicles, over time the companies
will be able to grow by taking advantage of economies of scale, better
financial terms, and increased buying power, resulting in additions to
driver and non-driver personnel.'' (Id.) Lastly, TBL Group asserts that
the transaction will not have a material, adverse effect on
competition. According to TBL Group, the areas served by the carriers
are subject to robust competition. (Id.) Specifically, TBL Group states
that the Jacksonville, Florida market has over 20 interstate
transportation providers offering charter and tour service. (Id.) TBL
Group estimates that interstate and intrastate carriers in the
Jacksonville, Florida market generate over $75 million in annual
revenues and operate approximately 800 vehicles, including sedans, mini
buses, and motor coaches. (Id. at 7-8 (pdf pages 9-10).) After the
transaction, TBL Group states that the combined revenues of Echo East
Coast Transportation will be less than 10% of $75 million and will
account for less than five percent of the vehicles in the local market.
(Id. at 8 (pdf page 10.) Thus, TBL Group asserts that the applicable
carriers are largely separate and distinct, with a small amount of
overlap in the larger markets, and do not plan on significantly
altering their current operations, but merely wish to take advantage of
efficiencies gained through working under one corporate structure. (Id.
at 7-8 (pdf pages 8-9).)
The Board finds that the acquisition as 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. If no
opposing comments are filed by expiration of the comment period, this
notice will take effect automatically and will be the final Board
action. Persons wishing to oppose the application must follow the rules
at 49 CFR 1182.5 and 1182.8.
This action is categorically excluded from environmental review
under 49 CFR 1105.6(c).
Board decisions and notices are available 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 January 3, 2024, unless opposing
comments are filed by January 2, 2024. If any comments are filed, TBL
Group may file a reply by January 16, 2024.
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 9, 2023.
By the Board, Board Members Fuchs, Hedlund, Oberman, Primus, and
Schultz.
Jeffrey Herzig,
Clearance Clerk.
[FR Doc. 2023-25491 Filed 11-16-23; 8:45 am]
BILLING CODE 4915-01-P