Ace Express Coaches, LLC, et al.; Acquisition and Control; Certain Properties of Evergreen Trails, Inc. d/b/a Horizon Coach Lines, 22613-22615 [2015-09360]
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Federal Register / Vol. 80, No. 77 / Wednesday, April 22, 2015 / Notices
Rather it will be a cost associated with
pursuing a Title XI loan guarantee.
asabaliauskas on DSK5VPTVN1PROD with NOTICES
Section 4: What if an available U.S.-flag
vessel cannot be found or the total
ocean freight rate appears too
expensive?
Only MARAD can issue a
determination that no qualified U.S.-flag
vessels are available at fair and
reasonable rates. If a Title XI applicant,
through diligent efforts, is unable to find
a U.S.-flag carrier, without prior
consultation with MARAD and a
determination of non-availability of
qualified U.S.-flag carriage, the
applicant’s due diligence alone will not
excuse that applicant from cargo
preference requirements. Title XI
applicants and prospective applicants
are encouraged to communicate with
U.S.-flag carriers at the earliest possible
time to ensure the greatest degree of
coordination and to obtain the best
rates. In the event that a Title XI
applicant or prospective applicant
experiences difficulty obtaining U.S.flag service, or if it can only find partial
U.S.-flag service, the applicant is
encouraged to contact MARAD as soon
as possible at cargo.marad@dot.gov or
(202) 366–4610. With proper planning,
U.S.-flag service can generally be
obtained at fair and reasonable rates.
Early planning and coordination are the
keys to meeting cargo preference
requirements in Title XI as in all other
Federal programs.
Section 5: What if non-compliance with
Cargo Preference requirements occurs?
At MARAD’s option, as the
administrator of the Title XI program,
non-compliant parties may be denied a
letter commitment or, consistent with
46 U.S.C. 55305(d)(2)(B), may required
to provide make-up cargoes for carriage
aboard U.S.-flag vessels to offset the lost
cargo carriage supporting work under
the Title XI financing application. In
extreme cases where knowing and
willful violations occur, consistent with
46 U.S.C. 55305(d)(2)(C), MARAD can
issue a civil penalty of not more than
$25,000 for each violation, with each
day of a continuing violation following
the date of shipment counting as a
separate violation. Additionally, cargo
preference requirements are
incorporated into Title XI letter
commitments; therefore, failure to
properly adhere to cargo preference
requirements could impact MARAD’s
ability to close on a Title XI guarantee
because the recipient has not met its
obligations under the letter
commitment. However, with early
planning and coordination with
MARAD, no cargo preference violations
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need occur under any Title XI
application, letter commitment or
guarantee.
Section 6: What is the purpose of Cargo
Preference?
The CPA 1954 provides a revenue
base that helps to retain and encourages
a privately owned and operated U.S.flag merchant fleet. The U.S.-flag fleet is
a vital resource, providing essential
sealift capability to globally project and
sustain the U.S. Armed Forces or
support other national emergencies,
maintaining a cadre of skilled seafarers
available in time of national
emergencies, and helping to protect U.S.
economic interests. The U.S. maritime
industry also supports thousands of seagoing, shore-based, and secondary,
associated jobs, supporting the Nation’s
economic growth. It is imperative that
Federal programs, such as Title XI, and
Title XI applicants and beneficiary
shipyards, as members of the U.S.
maritime industry, support this national
priority through proper adherence to
cargo preference requirements.
Therefore, while the use of U.S.-flag
vessels to carry 50 percent of the gross
tons of ocean borne cargoes is the
statutory minimum, MARAD, as the
agency charged with administering both
Title XI and the CPA 1954, encourages
the use of U.S.-flag vessels more than
the minimum whenever possible.
Privacy Act
In accordance with 5 U.S.C. 553(c),
DOT solicits comments from the public
to better inform its rulemaking process.
DOT posts these comments, without
edit, to www.regulations.gov, as
described in the system of records
notice, DOT/ALL–14 FDMS, accessible
through www.dot.gov/privacy. In order
to facilitate comment tracking and
response, we encourage commenters to
provide their name, or the name of their
organization; however, submission of
names is completely optional. Whether
or not commenters identify themselves,
all timely comments will be fully
considered. If you wish to provide
comments containing proprietary or
confidential information, please contact
the agency for alternate submission
instructions.
(Authority: 46 U.S.C. 55305; 46 U.S.C.
Ch. 537)
*
*
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*
*
By Order of the Maritime Administrator.
Dated: April 17, 2015.
Thomas M. Hudson, Jr.,
Acting Secretary, Maritime Administration.
[FR Doc. 2015–09371 Filed 4–21–15; 8:45 am]
BILLING CODE 4910–81–P
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22613
DEPARTMENT OF TRANSPORTATION
Surface Transportation Board
[Docket No. MCF 21062]
Ace Express Coaches, LLC, et al.;
Acquisition and Control; Certain
Properties of Evergreen Trails, Inc.
d/b/a Horizon Coach Lines
AGENCY:
Surface Transportation Board,
DOT.
Notice tentatively approving
and authorizing finance transaction.
ACTION:
Ace Express Coaches, LLC
(Buyer), and its affiliated parties (All
Aboard America! Holdings, Inc. (AHI),
Celerity AHI Holdings SPV, LLC
(Celerity Holdings), Celerity Partners IV,
LLC (Celerity Partners), and Industrial
Bus Lines, Inc. (IBL)) (collectively,
Applicants) have filed an application
under 49 U.S.C. 14303 for the Buyer to
acquire certain assets of Evergreen
Trails, Inc. d/b/a Horizon Coach Lines
(Seller), and for the continuance in
control of the Buyer by AHI, Celerity
Holdings, and Celerity Partners once the
Buyer becomes a federally regulated
motor carrier of passengers. 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
8, 2015. Applicants may file a reply by
June 22, 2015. If no comments are filed
by June 8, 2015, this notice shall be
effective on June 9, 2015.
ADDRESSES: Send an original and 10
copies of any comments referring to
Docket No. MCF 21062 to: Surface
Transportation Board, 395 E Street SW.,
Washington, DC 20423–0001. In
addition, send one copy of comments to
Applicants’ representative: Mark J.
Andrews, Strasburger & Price, LLP,
Suite 717, 1025 Connecticut Avenue
NW., Washington, DC 20036.
FOR FURTHER INFORMATION CONTACT:
Matthew Bornstein: (202) 245–0385.
Federal Information Relay Service
(FIRS) for the hearing impaired: 1–800–
877–8339.
SUPPLEMENTARY INFORMATION: The Buyer
is a newly established limited liability
company under the laws of Delaware.1
SUMMARY:
1 Concurrently with their application, the parties
also filed a request for interim approval under 49
U.S.C. 14303(i). In a decision served on April 8,
2015, in related Docket No. MCF 21062 TA, interim
approval was granted, effective on the service date
of that decision.
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Federal Register / Vol. 80, No. 77 / Wednesday, April 22, 2015 / Notices
Applicants state that the Buyer applied
to the Federal Motor Carrier Safety
Administration (FMCSA) for nationwide
charter and special operations authority,
as a motor passenger carrier operating
over irregular routes, in Docket No. MC–
908184. IBL, a motor carrier of
passengers (MC–133171), is a
corporation established under the laws
of New Mexico. IBL provides charter
and contract services in Arizona, New
Mexico, and Texas utilizing 101 motor
coaches and minibuses. The Buyer and
IBL are under the control of AHI,
Celerity Holdings, and Celerity Partners,
each a noncarrier organized under the
laws of Delaware. AHI also owns 100
percent of the stock of two other
federally regulated motor carriers of
passengers: Hotard Coaches, Inc.
(Hotard) (MC–148331) and Sureride
Charter Inc. d/b/a Sundiego Charter Co.
(Sundiego) (MC–324772).2 Hotard
operates local and regional charter and
contract services within Louisiana and
southern Mississippi. Sundiego
conducts charter, sightseeing, and
various shuttle operations to, from, and
within California and adjoining states.
The Seller, a motor carrier of
passengers (MC–107638), is a
corporation established under the laws
of the State of Washington. The Seller
is under the control of Francis W.
Sherman, a noncarrier individual. Mr.
Sherman exercises control of the Seller
through intermediate holding
companies FSCS Corporation and TMS
West Coast, Inc. Applicants state that
the Seller currently provides both
government and corporate shuttle
services, scheduled shuttle services
between Denver and two mountain
resort towns in Colorado (carrying both
patrons and employees of the casinos
located there), and leisure travel
services to, from, and within Colorado.
The government shuttle services include
services provided under a contract
between the Seller and the U.S.
Department of Defense (DOD).
Applicants state that the Seller utilized
approximately eight vans and minibuses
for the corporate shuttles, 11 motor
coaches for the casino operations, and
33 coaches plus two minibuses for all
other work. Applicants indicate that the
revenue mix generated by these assets in
2014 for the government/corporate
shuttles, casino operations, and charters
was approximately 9, 48, and 43
percent, respectively. In addition, the
2 The Board authorized control of Hotard and IBL
by AHI and the Celerity entities in Celerity Partners
IV—Control—Calco Travel, MCF 21044 (STB served
May 11, 2012). The Board also authorized control
of Sundiego by AHI and the Celerity entities in
Celerity Partners IV—Control— Sureride Charter,
MCF 21055 (STB served Oct. 29, 2013).
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Applicants state that the Seller has been
awarded an intercity passenger service
contract with the Colorado Department
of Transportation (CDOT) under which
13 additional CDOT-owned coaches will
commence operations within the next
few months.
Applicants explain that the proposed
transaction would close in three phases.
The first phase, as discussed in MCF
21062 TA, contemplates that the Buyer
and IBL would acquire control of the
assets currently operated by the Seller
in Colorado.3 All of the non-DOD assets,
including vehicles, would be operated
by IBL (under its existing FMCSA
authority) pursuant to an interim
management agreement between IBL
and the Buyer. Vehicles owned by the
Seller would be leased to the Buyer, and
vehicle leases to the Seller by third
parties would be assigned to the Buyer.
The DOD contract would be assigned to
and performed by IBL under a
management agreement with the Buyer,
as required by DOD regulations, which
preclude contracts with passenger
carriers in existence less than a year.
The second phase of the proposed
transaction would entail the Buyer
becoming permanent owner and
operator of all the non-DOD assets,
including vehicles, upon the effective
date of the Board’s approval of the
transaction and once the Buyer has
obtained FMCSA operating authority.
Any interim role of IBL managing such
assets would therefore end. Lastly, the
third phase of the proposed transaction
would occur as soon as practicable after
the first anniversary of the phase two
closing. The Buyer would replace IBL as
the direct operator of the DOD contract
and the proposed acquisition would
then be complete.
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. Applicants have submitted
information, as required by 49 CFR
1182.2, including the information to
demonstrate that the proposed
transaction is consistent with the public
3 These assets include: (i) The Seller’s operations
center in Golden, Colorado, plus six other leased
terminals and parking facilities; (ii) approximately
44 motor coaches and 23 other vehicles; (iii) all
maintenance facilities and supplies for these
vehicles; (iv) certain licenses and permits necessary
to operate the assets; (v) furniture, fixtures, office
equipment, software, and intellectual property in
use for such operations; and (vi) existing and
prospective charter and shuttle contracts based in
Colorado.
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interest under 49 U.S.C. 14303(b), and a
statement that Applicants’ aggregate
gross operating revenues of the Buyer,
IBL, Hotard, Sundiego, and the Colorado
assets of the Seller exceeded $2 million
for the preceding 12-month period, see
49 U.S.C. 14303(g).
Applicants submit that the proposed
transaction would have a positive net
impact on the adequacy of
transportation to the public because
Applicants do not intend to change the
operations of Seller’s assets, but intend
to modernize the bus fleet used in those
operations. They anticipate that the
proposed transaction would enhance
services to the public by implementing
vehicle sharing arrangements,
coordinated driver training and safety
management services, and by
centralizing certain management
support functions. With respect to fixed
charges, Applicants state that the
combined scale of operations of the
Buyer, IBL, Hotard, and Sundiego
would allow the Buyer to enhance its
volume purchasing power, thereby
reducing insurance premiums and
achieving deeper volume discounts for
tires, equipment, and fuel. Applicants
claim that the proposed transaction also
would have a positive impact on
employees. The Buyer intends to retain
Seller’s existing management and
hourly employees who are involved in
the operation of the assets being
acquired. Applicants assert that this
would result in continued job security
and opportunities for growth in the
combined business of the Buyer and its
affiliated carriers.
Applicants further claim that the
acquisition would not likely affect
competition because the markets in
which the Seller’s Colorado assets and
the previously approved combination of
Sundiego, IBL, and Hotard operate are
adjacent, but do not significantly
overlap. Applicants note that numerous
carriers compete with the Seller’s
operations in Colorado and that the
Seller operates fewer than 50 percent of
all coaches in the Denver and Colorado
Springs markets. These local and
regional carriers include Seller’s largest
competitor, Busco, Inc. d/b/a Arrow
Stage Lines (Busco), which operates 33
motor coaches from its Denver facility
and has 216 coaches in its total fleet.
Ramblin Express, Inc. (Ramblin) also
operates 45 units and has facilities in
Denver and Colorado Springs, and
Colorado Tour Line LLC, which
operates under the GrayLine brand,
operates motor coaches in both markets.
In addition, Applicants state that
Colorado Charter Line, Inc. (CCL) and
Premier Charter (Premier) are two
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smaller charter companies that operate
in the Denver area.
According to Applicants, in the
casino shuttle market, the Seller and
Ramblin are the current operators
(regulated by the Colorado Public Utility
Commission), and the Buyer merely
would replace the Seller in this market.
Applicants argue that services provided
under contract involve a competitive
bidding process where the competing
local and regional carriers mentioned
above could bid for shuttle services,
along with any interested nationwide
operators and that thus, the market
would remain competitive if the
proposed transaction were approved.
Applicants state that services provided
on a ‘‘spot basis’’ are the norm for much
of Seller’s charter business involving
leisure travel and that these charter
operations face competition from
nationwide operators in addition to the
local and regional carriers mentioned
above (Busco, Ramblin, CCL, and
Premier). They also note that motor
passenger carriers face intense market
competition from other transportation
modes, such as private automobiles,
airlines, and trains.
On the basis of the application, the
Board finds that the proposed
acquisition 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 9,
2015, unless opposing comments are
filed by June 8, 2015.
4. A copy of this decision will be
served on: (1) 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
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18:00 Apr 21, 2015
Jkt 235001
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 16, 2015.
By the Board, Acting Chairman Miller and
Vice Chairman Begeman.
Brendetta S. Jones,
Clearance Clerk.
[FR Doc. 2015–09360 Filed 4–21–15; 8:45 am]
BILLING CODE 4915–01–P
DEPARTMENT OF THE TREASURY
Open Meeting of the Federal Advisory
Committee on Insurance
Departmental Offices, U.S.
Department of the Treasury.
ACTION: Notice of open meeting.
AGENCY:
This notice announces that
the Department of the Treasury’s
Federal Advisory Committee on
Insurance (‘‘Committee’’) will convene a
meeting on Thursday, May 7, 2015, in
the Cash Room, 1500 Pennsylvania
Avenue NW., Washington, DC 20220,
from 1:00–5:00 p.m. Eastern Time. The
meeting is open to the public, and the
site is accessible to individuals with
disabilities.
DATES: The meeting will be held on
Thursday, May 7, 2015, from 1:00–5:00
p.m. Eastern Time.
ADDRESSES: The Federal Advisory
Committee on Insurance meeting will be
held in the Cash Room, Department of
the Treasury, 1500 Pennsylvania
Avenue NW., Washington, DC 20220.
The meeting will be open to the public.
Because the meeting will be held in a
secured facility, members of the public
who plan to attend the meeting must
either:
1. Register online. Attendees may visit
https://www.cvent.com/d/
frqz2l?ct=6128d144-9ad5-45f5-910cc7b44560aae0&RefID=FACI+General
+Registration and fill out a secure
online registration form. A valid email
address will be required to complete
online registration. (Note: Online
registration will close at 5:00 p.m.
Eastern Time on Friday, May 1, 2015.)
2. Contact the Federal Insurance
Office (FIO), at (202) 622–5892, by 5:00
p.m. Eastern Time on Friday, May 1,
2015, and provide registration
information.
Requests for reasonable
accommodations under Section 504 of
the Rehabilitation Act should be
directed to Marcia Wilson, Office of
Civil Rights and Diversity, Department
SUMMARY:
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22615
of the Treasury at (202) 622–8177, or
marcia.wilson@treasury.gov.
FOR FURTHER INFORMATION CONTACT:
Brett D. Hewitt, Policy Advisor, FIO,
Room 1410, Department of the Treasury,
1500 Pennsylvania Avenue NW,
Washington, DC 20220, at (202) 622–
5892 (this is not a toll-free number).
Persons who have difficulty hearing or
speaking may access this number via
TTY by calling the toll-free Federal
Relay Service at (800) 877–8339.
SUPPLEMENTARY INFORMATION: Notice of
this meeting is provided in accordance
with the Federal Advisory Committee
Act, 5 U.S.C. App. II, 10(a)(2), through
implementing regulations at 41 CFR
102–3.150.
Public Comment: Members of the
public wishing to comment on the
business of the Federal Advisory
Committee on Insurance are invited to
submit written statements by any of the
following methods:
Electronic Statements
• Send electronic comments to faci@
treasury.gov.
Paper Statements
• Send paper statements in triplicate
to the Federal Advisory Committee on
Insurance, Room 1410, Department of
the Treasury, 1500 Pennsylvania
Avenue NW., Washington, DC 20220.
In general, the Department of the
Treasury will post all statements on its
Web site https://www.treasury.gov/
about/organizational-structure/offices/
Pages/Federal-Insurance.aspx without
change, including any business or
personal information provided such as
names, addresses, email addresses, or
telephone numbers. The Department of
the Treasury will also make such
statements available for public
inspection and copying in the
Department of the Treasury’s Library,
1500 Pennsylvania Avenue NW.,
Washington, DC 20220, on official
business days between the hours of
10:00 a.m. and 5:00 p.m. Eastern Time.
You can make an appointment to
inspect statements by telephoning (202)
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You should submit only information
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Tentative Agenda/Topics for
Discussion: This is a periodic meeting of
the Federal Advisory Committee on
Insurance. In this meeting, the
Committee will discuss a number of
issues, including cybersecurity related
to the insurance industry, including
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]]>Agencies
[Federal Register Volume 80, Number 77 (Wednesday, April 22, 2015)]
[Notices]
[Pages 22613-22615]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-09360]
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DEPARTMENT OF TRANSPORTATION
Surface Transportation Board
[Docket No. MCF 21062]
Ace Express Coaches, LLC, et al.; Acquisition and Control;
Certain Properties of Evergreen Trails, Inc. d/b/a Horizon Coach Lines
AGENCY: Surface Transportation Board, DOT.
ACTION: Notice tentatively approving and authorizing finance
transaction.
-----------------------------------------------------------------------
SUMMARY: Ace Express Coaches, LLC (Buyer), and its affiliated parties
(All Aboard America! Holdings, Inc. (AHI), Celerity AHI Holdings SPV,
LLC (Celerity Holdings), Celerity Partners IV, LLC (Celerity Partners),
and Industrial Bus Lines, Inc. (IBL)) (collectively, Applicants) have
filed an application under 49 U.S.C. 14303 for the Buyer to acquire
certain assets of Evergreen Trails, Inc. d/b/a Horizon Coach Lines
(Seller), and for the continuance in control of the Buyer by AHI,
Celerity Holdings, and Celerity Partners once the Buyer becomes a
federally regulated motor carrier of passengers. 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 8, 2015. Applicants may file a
reply by June 22, 2015. If no comments are filed by June 8, 2015, this
notice shall be effective on June 9, 2015.
ADDRESSES: Send an original and 10 copies of any comments referring to
Docket No. MCF 21062 to: Surface Transportation Board, 395 E Street
SW., Washington, DC 20423-0001. In addition, send one copy of comments
to Applicants' representative: Mark J. Andrews, Strasburger & Price,
LLP, Suite 717, 1025 Connecticut Avenue NW., Washington, DC 20036.
FOR FURTHER INFORMATION CONTACT: Matthew Bornstein: (202) 245-0385.
Federal Information Relay Service (FIRS) for the hearing impaired: 1-
800-877-8339.
SUPPLEMENTARY INFORMATION: The Buyer is a newly established limited
liability company under the laws of Delaware.\1\
[[Page 22614]]
Applicants state that the Buyer applied to the Federal Motor Carrier
Safety Administration (FMCSA) for nationwide charter and special
operations authority, as a motor passenger carrier operating over
irregular routes, in Docket No. MC-908184. IBL, a motor carrier of
passengers (MC-133171), is a corporation established under the laws of
New Mexico. IBL provides charter and contract services in Arizona, New
Mexico, and Texas utilizing 101 motor coaches and minibuses. The Buyer
and IBL are under the control of AHI, Celerity Holdings, and Celerity
Partners, each a noncarrier organized under the laws of Delaware. AHI
also owns 100 percent of the stock of two other federally regulated
motor carriers of passengers: Hotard Coaches, Inc. (Hotard) (MC-148331)
and Sureride Charter Inc. d/b/a Sundiego Charter Co. (Sundiego) (MC-
324772).\2\ Hotard operates local and regional charter and contract
services within Louisiana and southern Mississippi. Sundiego conducts
charter, sightseeing, and various shuttle operations to, from, and
within California and adjoining states.
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\1\ Concurrently with their application, the parties also filed
a request for interim approval under 49 U.S.C. 14303(i). In a
decision served on April 8, 2015, in related Docket No. MCF 21062
TA, interim approval was granted, effective on the service date of
that decision.
\2\ The Board authorized control of Hotard and IBL by AHI and
the Celerity entities in Celerity Partners IV--Control--Calco
Travel, MCF 21044 (STB served May 11, 2012). The Board also
authorized control of Sundiego by AHI and the Celerity entities in
Celerity Partners IV--Control-- Sureride Charter, MCF 21055 (STB
served Oct. 29, 2013).
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The Seller, a motor carrier of passengers (MC-107638), is a
corporation established under the laws of the State of Washington. The
Seller is under the control of Francis W. Sherman, a noncarrier
individual. Mr. Sherman exercises control of the Seller through
intermediate holding companies FSCS Corporation and TMS West Coast,
Inc. Applicants state that the Seller currently provides both
government and corporate shuttle services, scheduled shuttle services
between Denver and two mountain resort towns in Colorado (carrying both
patrons and employees of the casinos located there), and leisure travel
services to, from, and within Colorado. The government shuttle services
include services provided under a contract between the Seller and the
U.S. Department of Defense (DOD). Applicants state that the Seller
utilized approximately eight vans and minibuses for the corporate
shuttles, 11 motor coaches for the casino operations, and 33 coaches
plus two minibuses for all other work. Applicants indicate that the
revenue mix generated by these assets in 2014 for the government/
corporate shuttles, casino operations, and charters was approximately
9, 48, and 43 percent, respectively. In addition, the Applicants state
that the Seller has been awarded an intercity passenger service
contract with the Colorado Department of Transportation (CDOT) under
which 13 additional CDOT-owned coaches will commence operations within
the next few months.
Applicants explain that the proposed transaction would close in
three phases. The first phase, as discussed in MCF 21062 TA,
contemplates that the Buyer and IBL would acquire control of the assets
currently operated by the Seller in Colorado.\3\ All of the non-DOD
assets, including vehicles, would be operated by IBL (under its
existing FMCSA authority) pursuant to an interim management agreement
between IBL and the Buyer. Vehicles owned by the Seller would be leased
to the Buyer, and vehicle leases to the Seller by third parties would
be assigned to the Buyer. The DOD contract would be assigned to and
performed by IBL under a management agreement with the Buyer, as
required by DOD regulations, which preclude contracts with passenger
carriers in existence less than a year.
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\3\ These assets include: (i) The Seller's operations center in
Golden, Colorado, plus six other leased terminals and parking
facilities; (ii) approximately 44 motor coaches and 23 other
vehicles; (iii) all maintenance facilities and supplies for these
vehicles; (iv) certain licenses and permits necessary to operate the
assets; (v) furniture, fixtures, office equipment, software, and
intellectual property in use for such operations; and (vi) existing
and prospective charter and shuttle contracts based in Colorado.
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The second phase of the proposed transaction would entail the Buyer
becoming permanent owner and operator of all the non-DOD assets,
including vehicles, upon the effective date of the Board's approval of
the transaction and once the Buyer has obtained FMCSA operating
authority. Any interim role of IBL managing such assets would therefore
end. Lastly, the third phase of the proposed transaction would occur as
soon as practicable after the first anniversary of the phase two
closing. The Buyer would replace IBL as the direct operator of the DOD
contract and the proposed acquisition would then be complete.
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. Applicants have 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 Applicants' aggregate gross operating
revenues of the Buyer, IBL, Hotard, Sundiego, and the Colorado assets
of the Seller exceeded $2 million for the preceding 12-month period,
see 49 U.S.C. 14303(g).
Applicants submit that the proposed transaction would have a
positive net impact on the adequacy of transportation to the public
because Applicants do not intend to change the operations of Seller's
assets, but intend to modernize the bus fleet used in those operations.
They anticipate that the proposed transaction would enhance services to
the public by implementing vehicle sharing arrangements, coordinated
driver training and safety management services, and by centralizing
certain management support functions. With respect to fixed charges,
Applicants state that the combined scale of operations of the Buyer,
IBL, Hotard, and Sundiego would allow the Buyer to enhance its volume
purchasing power, thereby reducing insurance premiums and achieving
deeper volume discounts for tires, equipment, and fuel. Applicants
claim that the proposed transaction also would have a positive impact
on employees. The Buyer intends to retain Seller's existing management
and hourly employees who are involved in the operation of the assets
being acquired. Applicants assert that this would result in continued
job security and opportunities for growth in the combined business of
the Buyer and its affiliated carriers.
Applicants further claim that the acquisition would not likely
affect competition because the markets in which the Seller's Colorado
assets and the previously approved combination of Sundiego, IBL, and
Hotard operate are adjacent, but do not significantly overlap.
Applicants note that numerous carriers compete with the Seller's
operations in Colorado and that the Seller operates fewer than 50
percent of all coaches in the Denver and Colorado Springs markets.
These local and regional carriers include Seller's largest competitor,
Busco, Inc. d/b/a Arrow Stage Lines (Busco), which operates 33 motor
coaches from its Denver facility and has 216 coaches in its total
fleet. Ramblin Express, Inc. (Ramblin) also operates 45 units and has
facilities in Denver and Colorado Springs, and Colorado Tour Line LLC,
which operates under the GrayLine brand, operates motor coaches in both
markets. In addition, Applicants state that Colorado Charter Line, Inc.
(CCL) and Premier Charter (Premier) are two
[[Page 22615]]
smaller charter companies that operate in the Denver area.
According to Applicants, in the casino shuttle market, the Seller
and Ramblin are the current operators (regulated by the Colorado Public
Utility Commission), and the Buyer merely would replace the Seller in
this market. Applicants argue that services provided under contract
involve a competitive bidding process where the competing local and
regional carriers mentioned above could bid for shuttle services, along
with any interested nationwide operators and that thus, the market
would remain competitive if the proposed transaction were approved.
Applicants state that services provided on a ``spot basis'' are the
norm for much of Seller's charter business involving leisure travel and
that these charter operations face competition from nationwide
operators in addition to the local and regional carriers mentioned
above (Busco, Ramblin, CCL, and Premier). They also note that motor
passenger carriers face intense market competition from other
transportation modes, such as private automobiles, airlines, and
trains.
On the basis of the application, the Board finds that the proposed
acquisition 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 9, 2015, unless opposing
comments are filed by June 8, 2015.
4. A copy of this decision will be served on: (1) 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 16, 2015.
By the Board, Acting Chairman Miller and Vice Chairman Begeman.
Brendetta S. Jones,
Clearance Clerk.
[FR Doc. 2015-09360 Filed 4-21-15; 8:45 am]
BILLING CODE 4915-01-P
