National Express Transit Corporation-Acquisition of Control-Trans Express, Inc., and Rainbow Management Service Inc., 25007-25008 [2015-10209]

Agencies

• Surface Transportation Board
• DEPARTMENT OF TRANSPORTATION

[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]


-----------------------------------------------------------------------

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.

-----------------------------------------------------------------------

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.
---------------------------------------------------------------------------

    \1\ The application does not describe the operations of 
Northwest.
---------------------------------------------------------------------------

    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