National Express LLC-Acquisition of Control-Wise Coaches, Inc., 49146-49148 [2018-21142]
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Federal Register / Vol. 83, No. 189 / Friday, September 28, 2018 / Notices
Programs Appropriations Act, 2018
(Div. K, Pub. L. 115–141), I hereby
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Dated: August 20, 2018.
Michael R. Pompeo,
Secretary of State.
[FR Doc. 2018–21187 Filed 9–27–18; 8:45 am]
BILLING CODE 4710–31–P
DEPARTMENT OF STATE
[Public Notice 10569]
Determination Pursuant to Section
7041(A)(3)(B) of the Department of
State, Foreign Operations, and Related
Programs Appropriations Act, 2017
By virtue of the authority vested in
me as Secretary of State pursuant to
section 7041(a)(3)(B) of the Department
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Dated: August 20, 2018.
Michael R. Pompeo,
Secretary of State.
[FR Doc. 2018–21189 Filed 9–27–18; 8:45 am]
BILLING CODE 4710–31–P
DEPARTMENT OF STATE
[Public Notice: 10564]
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[FR Doc. 2018–21170 Filed 9–27–18; 8:45 am]
BILLING CODE 4710–07–P
SURFACE TRANSPORTATION BOARD
[Docket No. MCF 21083]
National Express LLC—Acquisition of
Control—Wise Coaches, Inc.
Surface Transportation Board.
Notice tentatively approving
and authorizing finance transaction.
AGENCY:
ACTION:
On August 31, 2018, National
Express LLC (National Express) and
Alan Wise (collectively, Applicants),
noncarriers, jointly filed an application
under 49 U.S.C. 14303 for National
Express to acquire control of Wise
Coaches, Inc. d/b/a Wise Coach of
Nashville (Wise). 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 &
1182.8.
SUMMARY:
Comments must be filed by
November 13, 2018. Applicants may file
a reply by November 27, 2018. If no
opposing comments are filed by
November 13, 2018, this notice shall be
effective on November 14, 2018.
ADDRESSES: Send an original and 10
copies of any comments referring to
Docket No. MCF 21083 to: Surface
Transportation Board, 395 E Street SW,
Washington, DC 20423–0001. In
addition, send one copy of comments to
National Express’ representative:
Andrew K. Light, Scopelitis, Garvin,
Light, Hanson & Feary, P.C., 10 W
Market Street, Suite 1400, Indianapolis,
IN 46204.
FOR FURTHER INFORMATION CONTACT:
Sarah Fancher (202) 245–0355. Federal
Information Relay Service (FIRS) for the
hearing impaired: 1–800–877–8339.
SUPPLEMENTARY INFORMATION: According
to the application, National Express is a
non-carrier 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). (Appl. 1–2.)
Applicants state that Express Group
indirectly controls the following
passenger motor carriers (collectively,
National Express Affiliated Carriers):
DATES:
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Aristocrat Limousine and Bus, Inc.
(Aristocrat); Beck Bus Transportation
Corp. (Beck); Durham School Services,
L.P. (Durham); MV Student
Transportation, Inc. (MV); National
Express Transit—Yuma (NETY);
Petermann Ltd. (Petermann); Petermann
Northeast LLC (Northeast); Petermann
Southwest LLC (Southwest); Petermann
STSA, LLC (STSA); Queen City
Transportation, LLC (Queen City); Trans
Express, Inc. (Trans Express); Trinity,
Inc. (Trinity); Trinity Student Delivery
LLC (Trinity Student); and White Plains
Bus Company, Inc., d/b/a Suburban
Paratransit Service (White Plains). (Id. at
2.)
Applicants assert the following facts
regarding the National Express
Affiliated Carriers held by Express
Group (id. at 2–7):
• Aristocrat is a passenger motor carrier
providing to the public interstate passenger
charter services in the states of New Jersey,
New York, and Pennsylvania, and intrastate
passenger charter services in the state of New
Jersey. The USDOT Number assigned to
Aristocrat is 141894, and Aristocrat has a
‘‘Satisfactory’’ USDOT Safety Rating.
Aristocrat holds interstate carrier authority
from the Federal Motor Carrier Safety
Administration (FMCSA) under MC–173839.
• Beck is a passenger motor carrier
primarily engaged in providing non-regulated
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. The USDOT Number assigned to
Beck is 277593, and Beck has a
‘‘Satisfactory’’ USDOT Safety Rating. Beck
holds interstate carrier authority under MC–
143528.
• Durham is a passenger motor carrier
primarily engaged in providing non-regulated
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. The USDOT Number assigned to
Durham is 350651, and Durham has a
‘‘Satisfactory’’ USDOT Safety Rating. Durham
holds interstate carrier authority under MC–
163066.
• MV is a passenger motor carrier
primarily engaged in providing non-regulated
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. The USDOT Number assigned to
MV is 1049130, and MV has a ‘‘Satisfactory’’
USDOT Safety Rating. MV holds interstate
carrier authority under MC–148934.
• NETY is a passenger motor carrier
primarily engaged in providing paratransit
services in the area of Yuma, Ariz. The
USDOT Number assigned to NETY is
2532398, and NETY has a ‘‘Satisfactory’’
USDOT Safety Rating. NETY holds interstate
carrier authority under MC–960629.
• Petermann is a passenger motor carrier
primarily engaged in providing non-regulated
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student 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. The USDOT Number
assigned to Petermann is 821384, and
Petermann has a ‘‘Satisfactory’’ USDOT
Safety Rating. Petermann holds interstate
carrier authority under MC–364668.
• Northeast is a passenger motor carrier
primarily engaged in providing non-regulated
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. The USDOT Number assigned to
Northeast is 2058860, but Northeast does not
yet have a USDOT Safety Rating. Northeast
holds interstate carrier authority under MC–
723926.
• Southwest is a passenger motor carrier
primarily engaged in providing non-regulated
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. The USDOT Number
assigned to Southwest is 1765359, but
Southwest does not yet have a USDOT Safety
Rating. Southwest holds interstate carrier
authority under MC–644996.
• STSA is a passenger motor carrier
primarily engaged in providing non-regulated
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. The USDOT
Number assigned to STSA is 2133951, and
STSA has a ‘‘Satisfactory’’ USDOT Safety
Rating. STSA holds interstate carrier
authority under MC–749360.
• Queen City is a passenger motor carrier
primarily engaged in providing non-regulated
student school bus transportation services in
the metropolitan area of Cincinnati, Ohio,
and charter passenger services to the public.
The USDOT Number assigned to Queen City
is 224683, and Queen City has a
‘‘Satisfactory’’ USDOT Safety Rating. Queen
City holds interstate carrier authority under
MC–163846.
• Trans Express provides interstate and
intrastate passenger transportation services in
the state of New York. The USDOT Number
assigned to Trans Express is 530250, and
Trans Express has a ‘‘Satisfactory’’ USDOT
Safety Rating. Trans Express holds interstate
carrier authority under MC–187819.
• Trinity is a passenger motor carrier
engaged in providing non-regulated school
bus transportation services in southeastern
Michigan and also operates charter service to
the public. The USDOT Number assigned to
Trinity is 822553, but Trinity does not yet
have a USDOT Safety Rating. Trinity holds
interstate carrier authority under MC–
364003.
• Trinity Student is a passenger motor
carrier primarily engaged in providing nonregulated school bus transportation services
in northern Ohio. Trinity Student also
provides charter passenger services. The
USDOT Number assigned to Trinity Student
is 2424638, but Trinity Student does not yet
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have a USDOT Safety Rating. Trinity Student
holds interstate carrier authority under MC–
836335.
• White Plains is a passenger motor carrier
and operates primarily as a provider of nonregulated school bus transportation services
in the state of New York, paratransit services,
and charter service to the public. The USDOT
Number assigned to White Plains is 25675,
and White Plains has a ‘‘Satisfactory’’
USDOT Safety Rating. White Plains holds
interstate carrier authority under MC–
160624.
Applicants assert the following facts
about Wise (Appl. at 7–8):
• Wise is a Tennessee corporation. It
operates primarily as a motor carrier
providing interstate passenger charter
services in the state of Tennessee and
surrounding states, and intrastate passenger
charter and shuttle services in the state of
Tennessee. The USDOT Number assigned to
Wise is 763412, and Wise has a
‘‘Satisfactory’’ USDOT Safety Rating. Wise
holds interstate carrier authority under MC–
343763.
Applicants state that Wise is not
affiliated with any other passenger
carrier that has interstate passenger
motor carrier authority. (Id. at 8.)
According to the Application, Alan
Wise holds all of the issued and
outstanding equity stock of Wise.
Applicants assert that National Express
would acquire all of the outstanding
equity stock, resulting in 100% control
of Wise through the stock acquisition.
(Id.) Applicants further state that, other
than the National Express Affiliated
Carriers and Wise, there are no other
affiliated carriers with regulated
interstate operations that are involved in
this application. (Id.)
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 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 Wise exceeded $2 million
for the preceding 12-month period. See
49 U.S.C. 14303(g).1
Applicants submit that the proposed
transaction would have no material
1 Parties must certify that the transaction involves
carriers whose aggregate gross operating revenues
exceed $2 million, as required under 49 CFR
1182.2(a)(5).
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impact on the adequacy of
transportation services to the public, as
Wise would continue to provide the
services it currently provides using the
same name. (Appl. 9.) Applicants state
that Wise ‘‘will continue to operate, but
going forward, will be operating within
the National Express corporate family,
an organization that is very experienced
in passenger transportation operations.’’
(Id.)
According to Applicants, ‘‘[t]he
addition of Wise 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 services markets, but in
different geographic areas.’’ (Id.)
Applicants assert that Wise is
experienced in some of the same market
segments already served by some of the
National Express Affiliated Carriers. (Id.
at 9–10.) Applicants expect the
transaction to result in improved
operating efficiencies, increased
equipment utilization rates, and cost
savings derived from economies of
scale, all of which, Applicants state,
would help to ensure the provision of
adequate service to the public. (Id. at
10.) Applicants further assert that
bringing Wise 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.)
Applicants also claim that neither
competition nor the public interest
would be adversely affected by the
contemplated transaction. Applicants
state that the population and demand
for charter and shuttle services in
Nashville, Tenn., and the surrounding
area (the Service Area) have consistently
grown and are expected to increase in
the foreseeable future. (Id. at 11.)
According to Applicants, Wise
competes directly with other passenger
charter and shuttle service providers in
the Service Area, including Anchor
Tours, First Class Charter, Grand
Avenue, and Gray Line Nashville. (Id. at
11–12.) Applicants state that the Service
Area is geographically dispersed from
the service areas of the National Express
Affiliated Carriers, and there is very
limited overlap in the service areas and
customer bases among the National
Express Affiliated Carriers and Wise.
(Id. at 12.) Thus, Applicants state that
the impact of the contemplated
transaction on the regulated motor
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carrier industry would be minimal at
most and that neither competition nor
the public interest would be adversely
affected. (Id.)
Applicants assert that there are no
significant fixed charges associated with
the contemplated transaction. (Id. at 10.)
Applicants also state that National
Express does not anticipate a
measurable reduction in force or
changes in compensation levels or
benefits to employees. (Id.) Applicants
submit, however, that staffing
redundancies could result in limited
downsizing of back-office or manageriallevel personnel. (Id.)
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 website 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
November 14, 2018, unless opposing
comments are filed by November 13,
2018.
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: September 24, 2018.
By the Board, Board Members Begeman
and Miller.
Kenyatta Clay,
Clearance Clerk.
[FR Doc. 2018–21142 Filed 9–27–18; 8:45 am]
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SURFACE TRANSPORTATION BOARD
[Docket No. FD 36217]
San Pedro Valley Railroad, LLC—
Operation Exemption—San Pedro
Valley Holdings, LLC in Cochise
County, Ariz.
San Pedro Valley Railroad, LLC
(SPVR), a noncarrier, has filed a verified
notice of exemption under 49 CFR
1150.31 to operate two rail lines being
acquired by San Pedro Valley Holdings,
LLC: (1) From point of connection to
Union Pacific Railroad (UP) at milepost
1033.25 at or near Benson, to milepost
1040.15 at or near St. David, a distance
of 6.9 miles in Cochise County, Ariz.;
and (2) from point of connection to UP
at milepost 1074 at or near Wilcox, to
all tracks at Wilcox Yard, a total of 8,281
feet or 1.57 miles, in Cochise County
(collectively, the Lines). The Lines total
approximately 8.47 miles.
This transaction is related to a
concurrently filed verified notice of
exemption in Gregory B. Cundiff—
Continuance in Control Exemption—
San Pedro Valley Railroad, LLC in
Cochise County, Ariz., Docket No. FD
36219, in which Ironhorse Resources,
Inc., seeks Board approval to continue
in control of SPVR upon SPVR’s
becoming a Class III rail carrier.
SPVR certifies that, as a result of the
proposed transaction, its projected
annual revenues will not result in its
becoming a Class I or Class II rail carrier
and will not exceed $5 million. SPVR
also certifies that the proposed
transaction does not involve any
interchange commitments as defined in
49 CFR 1150.43(h).
The earliest this transaction may be
consummated is October 17, 2018, the
effective date of the exemption (30 days
after the verified notice was filed).1
SPVR states that it intends to
consummate the transaction no sooner
than 30 days after the filing of this
notice of exemption.
If the verified notice contains false or
misleading information, the exemption
is void ab initio. Petitions to revoke the
exemption under 49 U.S.C. 10502(d)
may be filed at any time. The filing of
a petition to revoke will not
automatically stay the effectiveness of
the exemption. Petitions to stay must be
filed by October 10, 2018 (at least seven
days before the exemption becomes
effective).
1 SPVR filed its verified notice of exemption on
August 30, 2018. On September 17, 2018, however,
SPVR supplemented its verified notice to clarify
references to Docket No. FD 36219. Therefore,
September 17, 2018, is deemed the verified notice’s
filing date.
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Agencies
[Federal Register Volume 83, Number 189 (Friday, September 28, 2018)]
[Notices]
[Pages 49146-49148]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-21142]
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SURFACE TRANSPORTATION BOARD
[Docket No. MCF 21083]
National Express LLC--Acquisition of Control--Wise Coaches, Inc.
AGENCY: Surface Transportation Board.
ACTION: Notice tentatively approving and authorizing finance
transaction.
-----------------------------------------------------------------------
SUMMARY: On August 31, 2018, National Express LLC (National Express)
and Alan Wise (collectively, Applicants), noncarriers, jointly filed an
application under 49 U.S.C. 14303 for National Express to acquire
control of Wise Coaches, Inc. d/b/a Wise Coach of Nashville (Wise). 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 & 1182.8.
DATES: Comments must be filed by November 13, 2018. Applicants may file
a reply by November 27, 2018. If no opposing comments are filed by
November 13, 2018, this notice shall be effective on November 14, 2018.
ADDRESSES: Send an original and 10 copies of any comments referring to
Docket No. MCF 21083 to: Surface Transportation Board, 395 E Street SW,
Washington, DC 20423-0001. In addition, send one copy of comments to
National Express' representative: Andrew K. Light, Scopelitis, Garvin,
Light, Hanson & Feary, P.C., 10 W Market Street, Suite 1400,
Indianapolis, IN 46204.
FOR FURTHER INFORMATION CONTACT: Sarah Fancher (202) 245-0355. Federal
Information Relay Service (FIRS) for the hearing impaired: 1-800-877-
8339.
SUPPLEMENTARY INFORMATION: According to the application, National
Express is a non-carrier 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). (Appl. 1-2.)
Applicants state that Express Group indirectly controls the following
passenger motor carriers (collectively, National Express Affiliated
Carriers):
[[Page 49147]]
Aristocrat Limousine and Bus, Inc. (Aristocrat); Beck Bus
Transportation Corp. (Beck); Durham School Services, L.P. (Durham); MV
Student Transportation, Inc. (MV); National Express Transit--Yuma
(NETY); Petermann Ltd. (Petermann); Petermann Northeast LLC
(Northeast); Petermann Southwest LLC (Southwest); Petermann STSA, LLC
(STSA); Queen City Transportation, LLC (Queen City); Trans Express,
Inc. (Trans Express); Trinity, Inc. (Trinity); Trinity Student Delivery
LLC (Trinity Student); and White Plains Bus Company, Inc., d/b/a
Suburban Paratransit Service (White Plains). (Id. at 2.)
Applicants assert the following facts regarding the National
Express Affiliated Carriers held by Express Group (id. at 2-7):
Aristocrat is a passenger motor carrier providing to
the public interstate passenger charter services in the states of
New Jersey, New York, and Pennsylvania, and intrastate passenger
charter services in the state of New Jersey. The USDOT Number
assigned to Aristocrat is 141894, and Aristocrat has a
``Satisfactory'' USDOT Safety Rating. Aristocrat holds interstate
carrier authority from the Federal Motor Carrier Safety
Administration (FMCSA) under MC-173839.
Beck is a passenger motor carrier primarily engaged in
providing non-regulated 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. The USDOT Number assigned to Beck is 277593, and Beck
has a ``Satisfactory'' USDOT Safety Rating. Beck holds interstate
carrier authority under MC-143528.
Durham is a passenger motor carrier primarily engaged
in providing non-regulated 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. The USDOT Number assigned to Durham is
350651, and Durham has a ``Satisfactory'' USDOT Safety Rating.
Durham holds interstate carrier authority under MC-163066.
MV is a passenger motor carrier primarily engaged in
providing non-regulated 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. The USDOT Number assigned to MV is 1049130, and MV has a
``Satisfactory'' USDOT Safety Rating. MV holds interstate carrier
authority under MC-148934.
NETY is a passenger motor carrier primarily engaged in
providing paratransit services in the area of Yuma, Ariz. The USDOT
Number assigned to NETY is 2532398, and NETY has a ``Satisfactory''
USDOT Safety Rating. NETY holds interstate carrier authority under
MC-960629.
Petermann is a passenger motor carrier primarily
engaged in providing non-regulated student 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. The USDOT Number assigned to
Petermann is 821384, and Petermann has a ``Satisfactory'' USDOT
Safety Rating. Petermann holds interstate carrier authority under
MC-364668.
Northeast is a passenger motor carrier primarily
engaged in providing non-regulated 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. The USDOT
Number assigned to Northeast is 2058860, but Northeast does not yet
have a USDOT Safety Rating. Northeast holds interstate carrier
authority under MC-723926.
Southwest is a passenger motor carrier primarily
engaged in providing non-regulated 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. The USDOT Number assigned to
Southwest is 1765359, but Southwest does not yet have a USDOT Safety
Rating. Southwest holds interstate carrier authority under MC-
644996.
STSA is a passenger motor carrier primarily engaged in
providing non-regulated 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. The USDOT Number assigned to STSA is
2133951, and STSA has a ``Satisfactory'' USDOT Safety Rating. STSA
holds interstate carrier authority under MC-749360.
Queen City is a passenger motor carrier primarily
engaged in providing non-regulated student school bus transportation
services in the metropolitan area of Cincinnati, Ohio, and charter
passenger services to the public. The USDOT Number assigned to Queen
City is 224683, and Queen City has a ``Satisfactory'' USDOT Safety
Rating. Queen City holds interstate carrier authority under MC-
163846.
Trans Express provides interstate and intrastate
passenger transportation services in the state of New York. The
USDOT Number assigned to Trans Express is 530250, and Trans Express
has a ``Satisfactory'' USDOT Safety Rating. Trans Express holds
interstate carrier authority under MC-187819.
Trinity is a passenger motor carrier engaged in
providing non-regulated school bus transportation services in
southeastern Michigan and also operates charter service to the
public. The USDOT Number assigned to Trinity is 822553, but Trinity
does not yet have a USDOT Safety Rating. Trinity holds interstate
carrier authority under MC-364003.
Trinity Student is a passenger motor carrier primarily
engaged in providing non-regulated school bus transportation
services in northern Ohio. Trinity Student also provides charter
passenger services. The USDOT Number assigned to Trinity Student is
2424638, but Trinity Student does not yet have a USDOT Safety
Rating. Trinity Student holds interstate carrier authority under MC-
836335.
White Plains is a passenger motor carrier and operates
primarily as a provider of non-regulated school bus transportation
services in the state of New York, paratransit services, and charter
service to the public. The USDOT Number assigned to White Plains is
25675, and White Plains has a ``Satisfactory'' USDOT Safety Rating.
White Plains holds interstate carrier authority under MC-160624.
Applicants assert the following facts about Wise (Appl. at 7-8):
Wise is a Tennessee corporation. It operates primarily
as a motor carrier providing interstate passenger charter services
in the state of Tennessee and surrounding states, and intrastate
passenger charter and shuttle services in the state of Tennessee.
The USDOT Number assigned to Wise is 763412, and Wise has a
``Satisfactory'' USDOT Safety Rating. Wise holds interstate carrier
authority under MC-343763.
Applicants state that Wise is not affiliated with any other
passenger carrier that has interstate passenger motor carrier
authority. (Id. at 8.)
According to the Application, Alan Wise holds all of the issued and
outstanding equity stock of Wise. Applicants assert that National
Express would acquire all of the outstanding equity stock, resulting in
100% control of Wise through the stock acquisition. (Id.) Applicants
further state that, other than the National Express Affiliated Carriers
and Wise, there are no other affiliated carriers with regulated
interstate operations that are involved in this application. (Id.)
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 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 Wise exceeded $2 million for the preceding 12-month period. See 49
U.S.C. 14303(g).\1\
---------------------------------------------------------------------------
\1\ Parties must certify that the transaction involves carriers
whose aggregate gross operating revenues exceed $2 million, as
required under 49 CFR 1182.2(a)(5).
---------------------------------------------------------------------------
Applicants submit that the proposed transaction would have no
material
[[Page 49148]]
impact on the adequacy of transportation services to the public, as
Wise would continue to provide the services it currently provides using
the same name. (Appl. 9.) Applicants state that Wise ``will continue to
operate, but going forward, will be operating within the National
Express corporate family, an organization that is very experienced in
passenger transportation operations.'' (Id.)
According to Applicants, ``[t]he addition of Wise 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 services markets, but in
different geographic areas.'' (Id.) Applicants assert that Wise is
experienced in some of the same market segments already served by some
of the National Express Affiliated Carriers. (Id. at 9-10.) Applicants
expect the transaction to result in improved operating efficiencies,
increased equipment utilization rates, and cost savings derived from
economies of scale, all of which, Applicants state, would help to
ensure the provision of adequate service to the public. (Id. at 10.)
Applicants further assert that bringing Wise 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.)
Applicants also claim that neither competition nor the public
interest would be adversely affected by the contemplated transaction.
Applicants state that the population and demand for charter and shuttle
services in Nashville, Tenn., and the surrounding area (the Service
Area) have consistently grown and are expected to increase in the
foreseeable future. (Id. at 11.) According to Applicants, Wise competes
directly with other passenger charter and shuttle service providers in
the Service Area, including Anchor Tours, First Class Charter, Grand
Avenue, and Gray Line Nashville. (Id. at 11-12.) Applicants state that
the Service Area is geographically dispersed from the service areas of
the National Express Affiliated Carriers, and there is very limited
overlap in the service areas and customer bases among the National
Express Affiliated Carriers and Wise. (Id. at 12.) Thus, Applicants
state that the impact of the contemplated transaction on the regulated
motor carrier industry would be minimal at most and that neither
competition nor the public interest would be adversely affected. (Id.)
Applicants assert that there are no significant fixed charges
associated with the contemplated transaction. (Id. at 10.) Applicants
also state that National Express does not anticipate a measurable
reduction in force or changes in compensation levels or benefits to
employees. (Id.) Applicants submit, however, that staffing redundancies
could result in limited downsizing of back-office or managerial-level
personnel. (Id.)
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 website 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 November 14, 2018, unless opposing
comments are filed by November 13, 2018.
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: September 24, 2018.
By the Board, Board Members Begeman and Miller.
Kenyatta Clay,
Clearance Clerk.
[FR Doc. 2018-21142 Filed 9-27-18; 8:45 am]
BILLING CODE 4915-01-P