EQT Infrastructure V Collect EUR SCSp and EQT Infrastructure V Collect USD SCSp-Acquisition of Control-First Student, Inc.; First Transit, Inc.; First Mile Square, LLC; First Canada ULC; and Transit Management of Dutchess County, Inc., 27664-27666 [2021-10782]
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27664
Federal Register / Vol. 86, No. 97 / Friday, May 21, 2021 / Notices
A.
Escobar, Office of Disaster Assistance,
U.S. Small Business Administration,
409 3rd Street SW, Suite 6050,
Washington, DC 20416, (202) 205–6734.
SUPPLEMENTARY INFORMATION: The notice
of the President’s major disaster
declaration for Private Non-Profit
organizations in the State of
Washington, dated 04/08/2021, is
hereby amended to include the
following areas as adversely affected by
the disaster.
Primary Counties: Cowlitz and the
Puyallup Tribe of Indians.
All other information in the original
declaration remains unchanged.
FOR FURTHER INFORMATION CONTACT:
(Catalog of Federal Domestic Assistance
Number 59008)
James Rivera,
Associate Administrator for Disaster
Assistance.
[FR Doc. 2021–10703 Filed 5–20–21; 8:45 am]
BILLING CODE 8026–03–P
SURFACE TRANSPORTATION BOARD
[Docket No. FD 36515]
Southwest Pennsylvania Railroad
Company—Acquisition Exemption—
Lines of Westmoreland County
Industrial Development Corporation
jbell on DSKJLSW7X2PROD with NOTICES
Southwest Pennsylvania Railroad
Company (SWP), a Class III rail carrier,1
has filed a verified notice of exemption
under 49 CFR 1150.41 to acquire from
Westmoreland County Industrial
Development Corporation (WCIDC)
approximately 43.34 miles of rail line in
Fayette and Westmoreland Counties,
Pa., as follows: (1) From milepost 0.05
in Greensburg, Pa., through milepost 2.5
at County Home Junction and milepost
17.54 at the Westmoreland/Fayette
County border near Everson to the end
of track at milepost 23.8 in Bullskin, Pa.,
a distance of approximately 23.75 miles;
(2) from the connection with Norfolk
Southern Railway Company at milepost
3.9 in Greensburg, Pa., to milepost 0.0
at County Home Junction (milepost 2.5
on the first line above), a distance of
approximately 3.9 miles; (3) the Yukon
Branch from milepost 0.0 at Hunker,
Pa., to the end of track at milepost 3.5
at Waltz, Pa., a distance of
approximately 3.5 miles; (4) the Mt.
Pleasant Sub from milepost 3.31 near
1 The verified notice states that SWP is a wholly
owned subsidiary of Carload Express, Inc., a
noncarrier holding company that also controls two
other Class III rail carriers operating in
Pennsylvania, Maryland, Delaware, and Virginia.
See Carload Express, Inc.—Continuance in Control
Exemption—Delmarva Cent. R.R., FD 36072 (STB
served Dec. 2, 2016).
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17:15 May 20, 2021
Jkt 253001
Everson, Pa., to the end of track at
approximately milepost 15.3 at
Westmoreland Yard near Mount
Pleasant, Pa., a distance of
approximately 11.99 miles, including
certain yard tracks and a 0.58-mile spur
track at Westmoreland Yard; 2 and (5)
the W&LE Connector from the
connection with SWP at milepost 0.05
to the connection with Wheeling & Lake
Erie Railway Company at milepost 0.25
near Everson, Pa., a distance of
approximately 0.20 miles (the Lines).
According to the verified notice, SWP
has leased and operated the Lines since
1995.3
The verified notice states that SWP
and WCIDC have executed a Purchase
and Sale Agreement dated April 23,
2021, providing for SWP’s acquisition of
the Lines.
SWP certifies that its projected annual
revenues as a result of this transaction
will not result in SWP’s becoming a
Class II or Class I rail carrier but that its
annual revenues exceed $5 million.
Pursuant to 49 CFR 1150.42(e), if a
carrier’s projected annual revenues will
exceed $5 million, it must, at least 60
days before the exemption is to become
effective, post a notice of its intent to
undertake the proposed transaction at
the workplace of the employees on the
affected lines, serve a copy of the notice
on the national offices of the labor
unions with employees on the affected
lines, and certify to the Board that it has
done so. However, SWP has filed a
petition for waiver of the 60-day
advance labor notice requirements.
SWP’s waiver request will be addressed
in a separate decision. The Board will
establish the effective date of the
exemption in its separate decision on
the waiver request.
SWP also certifies that the proposed
acquisition and operation of the Lines
does not involve a provision or
agreement that may limit future
interchange with a third-party
connecting carrier.
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
2 SWP states that it previously acquired the
segment of the Mt. Pleasant Sub from milepost 0.0
in Broad Ford, Pa., to milepost 3.31 in Southwest
Pennsylvania Railroad—Acquisition Exemption—
Laurel Hill Development Corp., FD 35584 (STB
served Jan. 13, 2012).
3 See Sw. Pa. R.R.—Acquis. & Operation
Exemption—Lines of Consolidated Rail Corp., FD
32692 (ICC served July 21, 1995); Sw. Pa. R.R.—
Lease & Operation Exemption—Lines of
Westmoreland Cnty. Indus. Dev. Corp., FD 32737
(ICC served July 21, 1995; Westmoreland Cnty.
Indus. Dev. Corp.—Acquis. Exemption—Sw. Pa.
R.R., FD 32767 (ICC served Nov. 3, 1995).
PO 00000
Frm 00113
Fmt 4703
Sfmt 4703
a petition to revoke will not
automatically stay the effectiveness of
the exemption. Petitions for stay must
be filed no later than May 28, 2021.
All pleadings, referring to Docket No.
FD 36515, should be filed with the
Surface Transportation Board via efiling on the Board’s website. In
addition, a copy of each pleading must
be served on SWP’s representative,
Thomas J. Litwiler, Fletcher & Sippel
LLC, 29 North Wacker Drive, Suite 800,
Chicago, IL 60606.
According to SWP, this action is
categorically excluded from
environmental review under 49 CFR
1105.6(c) and from historic preservation
reporting requirements under 49 CFR
1105.8(b).
Board decisions and notices are
available at www.stb.gov.
Decided: May 17, 2021.
By the Board, Scott M. Zimmerman, Acting
Director, Office of Proceedings.
Tammy Lowery,
Clearance Clerk.
[FR Doc. 2021–10734 Filed 5–20–21; 8:45 am]
BILLING CODE 4915–01–P
SURFACE TRANSPORTATION BOARD
[Docket No. MCF 21093]
EQT Infrastructure V Collect EUR
SCSp and EQT Infrastructure V Collect
USD SCSp—Acquisition of Control—
First Student, Inc.; First Transit, Inc.;
First Mile Square, LLC; First Canada
ULC; and Transit Management of
Dutchess County, Inc.
Surface Transportation Board.
Notice Tentatively Approving
and Authorizing Finance Transaction.
AGENCY:
ACTION:
EQT Infrastructure V Collect
EUR SCSp and EQT Infrastructure V
Collect USD SCSp, each a noncarrier
acting by its manager EQT Fund
Management S.a` r.l. (jointly, Applicants
or EQT), have filed an application to
acquire control of First Student, Inc.,
First Transit, Inc., First Mile Square,
LLC, First Canada ULC, and Transit
Management of Dutchess County, Inc.
(collectively, Target Carriers), which
each hold interstate carrier operating
authority in the United States, from
FirstGroup plc (FirstGroup) and its
subsidiary FirstBus Investments Ltd.
(FirstBus), through a stock purchase
agreement. 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 July
6, 2021. If any comments are filed,
SUMMARY:
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Federal Register / Vol. 86, No. 97 / Friday, May 21, 2021 / Notices
jbell on DSKJLSW7X2PROD with NOTICES
Applicants may file a reply by July 20,
2021. If no opposing comments are filed
by July 6, 2021, this notice shall be
effective on July 7, 2021.
ADDRESSES: Comments should be filed
with the Surface Transportation Board
via e-filing on the Board’s website. In
addition, send one copy of comments to
EQT’s representative: David H. Coburn,
Steptoe & Johnson LLP, 1330
Connecticut Avenue NW, Washington,
DC 20036.
FOR FURTHER INFORMATION CONTACT:
Jonathon Binet at (202) 245–0368.
Assistance for the hearing impaired is
available through the Federal Relay
Service at (800) 877–8339.
SUPPLEMENTARY INFORMATION: According
to the application, Applicants form part
of the fifth infrastructure investment
fund established by EQT AB,1 known as
EQT Infrastructure V. (Appl. 4.) The
fund is organized under the laws of
Luxembourg and headquartered in
Luxembourg City, Lux. (Id.) Applicants
state that EQT currently does not
directly or indirectly control any
federally regulated motor passenger
carriers operating in the United States.
(Id. at 2.)
Under this transaction, EQT will
acquire, through a stock purchase
agreement, five motor passenger carriers
from FirstGroup and its subsidiary
FirstBus. (Id. at 1.) EQT states that
FirstGroup is a public limited company
organized under the laws of Scotland
and headquartered in Aberdeen, Scot.
(Id. at 5.) According to EQT, FirstGroup
is an international transportation group
that provides services in North America,
where it has several operating divisions,
which include the Target Carriers,2 and
in the United Kingdom. The stock
agreement provides for the transfer of all
outstanding shares of First Transit, Inc.,
and FirstGroup Investment Corporation
(FirstGroup Investment),3 a subsidiary
of FirstGroup. (Id. at 1.) This transfer
will place EQT in control of the
following motor passenger carriers that
each hold interstate carrier operating
authority in the United States:
• First Student, Inc., which provides
over 900 million student journeys per
year to approximately 1,000 school
1 Applicants state that EQT AB manages and
advises a range of specialized investment funds and
other investment vehicles that invest in companies
across the world. EQT AB is not an applicant.
(Appl. 3.)
2 FirstGroup also controls four interstate
passenger motor carriers that are not part of the
proposed transaction. (Appl. 5, Ex. 3.)
3 FirstGroup Investment is a Delaware corporation
headquartered in Cincinnati, Ohio. (Appl. 5.) EQT
states that FirstGroup Investment is a holding
company that controls four of the Target Carriers,
in addition to other noncarriers that are not subject
to this application. (Id.)
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17:15 May 20, 2021
Jkt 253001
districts, engages in interstate charter
and special operations, and provides
intrastate transportation in California,
Washington, and Pennsylvania;
• First Transit, Inc., which transports
350 million passengers annually across
more than 300 locations in North
America and engages in intrastate
transportation in the states of California,
Colorado, and Rhode Island, and in the
Washington, DC, metropolitan area;
• First Mile Square, LLC, which
specializes in student transportation in
the southeastern New York area and
also conducts special and charter
operations;
• First Canada ULC, d/b/a First
Student Canada, which provides motor
passenger services in Canada but also
operates some cross-border services into
the United States, primarily in the form
of charter bus operations;
• Transit Management of Dutchess
County, Inc., dba Dutchess County Mass
Transit, which provides contract motor
passenger transportation services in the
Dutchess County, NY, area, and holds
an intrastate permit authorizing it to
provide motor passenger contract
service within Dutchess County under
contracts with the county. (Id. at 6–10.) 4
EQT states that it has no current plans
to materially alter the services that the
Target Carriers provide, to weaken the
existing management structure that is in
place to ensure the safety and reliability
of such services, or to make any
significant changes that would
adversely affect the Target Carriers’
safety controls, employees, or
customers. (Id. at 3.) Rather, EQT states,
its goal is to continue providing safe and
reliable motor passenger transportation
to the public while improving the
quality and efficiency of that
transportation and enhancing the value
of the Target Carriers. (Id. at 2–3.)
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
from the proposed transaction, and (3)
the interest of affected carrier
employees. Applicants have submitted
the information required by 49 CFR
1182.2, to include information
demonstrating 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
4 Additional information about the Target
Carriers, including U.S. Department of
Transportation (USDOT) numbers, motor carrier
numbers, and USDOT safety fitness ratings, can be
found in the application. (Appl. 6–10, Ex. 1.)
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Frm 00114
Fmt 4703
Sfmt 4703
27665
statement under 49 U.S.C. 14303(g) that
the aggregate gross operating revenues
of the involved carriers exceeded $2
million during the 12-month period
ending in December 2020, see 49 CFR
1182.2(a)(5). (Appl. 11–14.)
EQT asserts that the transaction will
not alter the adequacy or nature of the
transportation currently provided by the
Target Carriers. (Id. at 13.) According to
the application, EQT plans to invest in
improved digital technology, such as
touring software and various in-bus
technologies to track and improve driver
performance and safety metrics, and to
accelerate existing plans made by First
Student, Inc., and First Transit, Inc., for
the acquisition of electric vehicles and
associated charging infrastructure. (Id.
at 12.) EQT states that, through its
investment in electrification of the
Target Carrier fleets, it hopes to expedite
a broader interest in the electrification
and sustainability of motor vehicle
fleets nationwide. (Id. at 13.) Further,
EQT plans to retain the current
management of each Target Carrier,
including safety managers at both the
corporate and local levels. (Id.) EQT also
submits that the proposed transaction
will have no adverse effect on the level
of competition in any sector of the
motor passenger business in which the
Target Carriers operate because EQT
does not control other federally
regulated motor passenger carriers
operating in the United States. (Id. at 3.)
As to the fixed charges that will result
from the proposed transaction, EQT
states that the cost of the proposed
transaction is being financed by a
combination of debt and equity capital.
(Id. at 13.) EQT states that the Target
Carriers each have a stable revenue
stream that is more than adequate to
service existing and anticipated debt.
(Id.) EQT also states that the Target
Carriers will have access to funds from
EQT Infrastructure V (which has an
estimated total fund size of
approximately $18 billion) and other
EQT funds and will have the backing of
EQT AB’s considerable capitalization.
(Id.)
According to EQT, the transaction is
not expected to adversely affect current
employees of the Target Carriers. (Id. at
14.) EQT states that it has no plans for
employee layoffs or reductions in
staffing and does not plan to adversely
change existing employee benefits. (Id.)
The Board finds that the acquisition
of the Target Carriers 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
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Federal Register / Vol. 86, No. 97 / Friday, May 21, 2021 / Notices
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.
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 July 7,
2021, unless opposing comments are
filed by July 6, 2021.
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: May 17, 2021.
By the Board, Board Members Begeman,
Fuchs, Oberman, Primus, and Schultz.
Kenyatta Clay,
Clearance Clerk.
[FR Doc. 2021–10782 Filed 5–20–21; 8:45 am]
BILLING CODE 4915–01–P
SURFACE TRANSPORTATION BOARD
[Docket No. AB 183 (Sub-No. 5X)]
Union Railroad Company, LLC—
Abandonment Exemption—in the City
of McKeesport, Allegheny County, PA
jbell on DSKJLSW7X2PROD with NOTICES
Union Railroad Company, LLC (URR),
has filed a verified notice of exemption
under 49 CFR part 1152 subpart F—
Exempt Abandonments to abandon
approximately 5.4 miles of switching
and terminal trackage known as the
MCR Track in the City of McKeesport in
Allegheny County, PA (the Line).1 The
1 URR states that the Line, which does not have
mileposts, is generally bounded on the north by the
Monongahela River; on the east by the McKeesport/
North Versailles Township line; on the south by
Lysle Blvd., 5th Avenue, Bowman Avenue, and/or
East Pittsburgh McKeesport Road; and on the west
by the Youghiogheny River.
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17:15 May 20, 2021
Jkt 253001
Line traverses U.S. Postal Service Zip
Code 15132.
URR has certified that: (1) It has
provided no local common carrier traffic
over the Line during the past two years;
(2) no overhead traffic has moved over
the Line and overhead traffic, if there
were any, could be rerouted over other
lines; (3) no formal complaint filed by
a user of rail service on the Line (or by
a state or local government entity acting
on behalf of such user) regarding
cessation of service over the Line either
is pending with the Surface
Transportation Board (Board) or with
any U.S. District Court or has been
decided in favor of complainant within
the two-year period; and (4) the
requirements at 49 CFR 1105.7 and
1105.8 (notice of environmental and
historic report), 49 CFR 1105.12
(newspaper publication), and 49 CFR
1152.50(d)(1) (notice to governmental
agencies) have been met.
As a condition to this exemption, any
employee adversely affected by the
abandonment shall be protected under
Oregon Short Line Railroad—
Abandonment Portion Goshen Branch
Between Firth & Ammon, in Bingham &
Bonneville Counties, Idaho, 360 I.C.C.
91 (1979). To address whether this
condition adequately protects affected
employees, a petition for partial
revocation under 49 U.S.C. 10502(d)
must be filed.
Provided no formal expression of
intent to file an offer of financial
assistance (OFA) has been received,2 the
exemption will be effective on June 20,
2021, unless stayed pending
reconsideration. Petitions to stay that do
not involve environmental issues must
be filed by May 28, 2021.3 Formal
expressions of intent to file an OFA
under 49 CFR 1152.27(c)(2) and interim
trail use/rail banking requests under 49
CFR 1152.29 must be filed by June 1,
2021.4 Petitions to reopen or requests
for public use conditions under 49 CFR
1152.28 must be filed by June 10, 2021.
2 Persons interested in submitting an OFA must
first file a formal expression of intent to file an
offer, indicating the type of financial assistance they
wish to provide (i.e., subsidy or purchase) and
demonstrating that they are preliminarily
financially responsible. See 49 CFR 1152.27(c)(2)(i).
3 The Board will grant a stay if an informed
decision on environmental issues (whether raised
by a party or by the Board’s Office of Environmental
Analysis (OEA) in its independent investigation)
cannot be made before the exemption’s effective
date. See Exemption of Out-of-Serv. Rail Lines, 5
I.C.C.2d 377 (1989). Any request for a stay should
be filed as soon as possible so that the Board may
take appropriate action before the exemption’s
effective date.
4 Filing fees for OFAs and trail use requests can
be found at 49 CFR 1002.2(f)(25) and (27),
respectively.
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All pleadings, referring to Docket No.
AB 183 (Sub-No. 5X), should be filed
with the Surface Transportation Board
via e-filing on the Board’s website. In
addition, a copy of each pleading must
be served on URR’s representative,
Crystal M. Zorbaugh, Baker & Miller
PLLC, 2401 Pennsylvania Avenue NW,
Suite 300, Washington, DC 20037.
If the verified notice contains false or
misleading information, the exemption
is void ab initio.
URR has filed a combined
environmental and historic report that
addresses the potential effects, if any, of
the abandonment on the environment
and historic resources. OEA will issue a
Draft Environmental Assessment (Draft
EA) by May 28, 2021. The Draft EA will
be available to interested persons on the
Board’s website, by writing to OEA, or
by calling OEA at (202) 245–0305.
Assistance for the hearing impaired is
available through the Federal Relay
Service at (800) 877–8339. Comments
on environmental and historic
preservation matters must be filed
within 15 days after the Draft EA
becomes available to the public.
Environmental, historic preservation,
public use, or interim trail use/rail
banking conditions will be imposed,
where appropriate, in a subsequent
decision.
Pursuant to the provisions of 49 CFR
1152.29(e)(2), URR shall file a notice of
consummation with the Board to signify
that it has exercised the authority
granted and fully abandoned the Line. If
consummation has not been effected by
URR’s filing of a notice of
consummation by May 21, 2022, and
there are no legal or regulatory barriers
to consummation, the authority to
abandon will automatically expire.
Board decisions and notices are
available at www.stb.gov.
Decided: May 17, 2021.
By the Board, Scott M. Zimmerman, Acting
Director, Office of Proceedings.
Brendetta Jones,
Clearance Clerk.
[FR Doc. 2021–10724 Filed 5–20–21; 8:45 am]
BILLING CODE 4915–01–P
SURFACE TRANSPORTATION BOARD
[Docket No. FD 36502]
Lubbock & Western Railway, L.L.C.—
Lease and Operation Exemption With
Interchange Commitment—BNSF
Railway Company
Lubbock & Western Railway, L.L.C.
(LWR), a Class III rail carrier, has filed
a verified notice of exemption under 49
CFR 1150.41 to lease from BNSF
E:\FR\FM\21MYN1.SGM
21MYN1
]]>Agencies
[Federal Register Volume 86, Number 97 (Friday, May 21, 2021)]
[Notices]
[Pages 27664-27666]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-10782]
-----------------------------------------------------------------------
SURFACE TRANSPORTATION BOARD
[Docket No. MCF 21093]
EQT Infrastructure V Collect EUR SCSp and EQT Infrastructure V
Collect USD SCSp--Acquisition of Control--First Student, Inc.; First
Transit, Inc.; First Mile Square, LLC; First Canada ULC; and Transit
Management of Dutchess County, Inc.
AGENCY: Surface Transportation Board.
ACTION: Notice Tentatively Approving and Authorizing Finance
Transaction.
-----------------------------------------------------------------------
SUMMARY: EQT Infrastructure V Collect EUR SCSp and EQT Infrastructure V
Collect USD SCSp, each a noncarrier acting by its manager EQT Fund
Management S.[agrave] r.l. (jointly, Applicants or EQT), have filed an
application to acquire control of First Student, Inc., First Transit,
Inc., First Mile Square, LLC, First Canada ULC, and Transit Management
of Dutchess County, Inc. (collectively, Target Carriers), which each
hold interstate carrier operating authority in the United States, from
FirstGroup plc (FirstGroup) and its subsidiary FirstBus Investments
Ltd. (FirstBus), through a stock purchase agreement. 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 July 6, 2021. If any comments are
filed,
[[Page 27665]]
Applicants may file a reply by July 20, 2021. If no opposing comments
are filed by July 6, 2021, this notice shall be effective on July 7,
2021.
ADDRESSES: Comments should be filed with the Surface Transportation
Board via e-filing on the Board's website. In addition, send one copy
of comments to EQT's representative: David H. Coburn, Steptoe & Johnson
LLP, 1330 Connecticut Avenue NW, Washington, DC 20036.
FOR FURTHER INFORMATION CONTACT: Jonathon Binet at (202) 245-0368.
Assistance for the hearing impaired is available through the Federal
Relay Service at (800) 877-8339.
SUPPLEMENTARY INFORMATION: According to the application, Applicants
form part of the fifth infrastructure investment fund established by
EQT AB,\1\ known as EQT Infrastructure V. (Appl. 4.) The fund is
organized under the laws of Luxembourg and headquartered in Luxembourg
City, Lux. (Id.) Applicants state that EQT currently does not directly
or indirectly control any federally regulated motor passenger carriers
operating in the United States. (Id. at 2.)
---------------------------------------------------------------------------
\1\ Applicants state that EQT AB manages and advises a range of
specialized investment funds and other investment vehicles that
invest in companies across the world. EQT AB is not an applicant.
(Appl. 3.)
---------------------------------------------------------------------------
Under this transaction, EQT will acquire, through a stock purchase
agreement, five motor passenger carriers from FirstGroup and its
subsidiary FirstBus. (Id. at 1.) EQT states that FirstGroup is a public
limited company organized under the laws of Scotland and headquartered
in Aberdeen, Scot. (Id. at 5.) According to EQT, FirstGroup is an
international transportation group that provides services in North
America, where it has several operating divisions, which include the
Target Carriers,\2\ and in the United Kingdom. The stock agreement
provides for the transfer of all outstanding shares of First Transit,
Inc., and FirstGroup Investment Corporation (FirstGroup Investment),\3\
a subsidiary of FirstGroup. (Id. at 1.) This transfer will place EQT in
control of the following motor passenger carriers that each hold
interstate carrier operating authority in the United States:
---------------------------------------------------------------------------
\2\ FirstGroup also controls four interstate passenger motor
carriers that are not part of the proposed transaction. (Appl. 5,
Ex. 3.)
\3\ FirstGroup Investment is a Delaware corporation
headquartered in Cincinnati, Ohio. (Appl. 5.) EQT states that
FirstGroup Investment is a holding company that controls four of the
Target Carriers, in addition to other noncarriers that are not
subject to this application. (Id.)
---------------------------------------------------------------------------
First Student, Inc., which provides over 900 million
student journeys per year to approximately 1,000 school districts,
engages in interstate charter and special operations, and provides
intrastate transportation in California, Washington, and Pennsylvania;
First Transit, Inc., which transports 350 million
passengers annually across more than 300 locations in North America and
engages in intrastate transportation in the states of California,
Colorado, and Rhode Island, and in the Washington, DC, metropolitan
area;
First Mile Square, LLC, which specializes in student
transportation in the southeastern New York area and also conducts
special and charter operations;
First Canada ULC, d/b/a First Student Canada, which
provides motor passenger services in Canada but also operates some
cross-border services into the United States, primarily in the form of
charter bus operations;
Transit Management of Dutchess County, Inc., dba Dutchess
County Mass Transit, which provides contract motor passenger
transportation services in the Dutchess County, NY, area, and holds an
intrastate permit authorizing it to provide motor passenger contract
service within Dutchess County under contracts with the county. (Id. at
6-10.) \4\
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\4\ Additional information about the Target Carriers, including
U.S. Department of Transportation (USDOT) numbers, motor carrier
numbers, and USDOT safety fitness ratings, can be found in the
application. (Appl. 6-10, Ex. 1.)
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EQT states that it has no current plans to materially alter the
services that the Target Carriers provide, to weaken the existing
management structure that is in place to ensure the safety and
reliability of such services, or to make any significant changes that
would adversely affect the Target Carriers' safety controls, employees,
or customers. (Id. at 3.) Rather, EQT states, its goal is to continue
providing safe and reliable motor passenger transportation to the
public while improving the quality and efficiency of that
transportation and enhancing the value of the Target Carriers. (Id. at
2-3.)
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 from the proposed transaction, and (3) the interest
of affected carrier employees. Applicants have submitted the
information required by 49 CFR 1182.2, to include information
demonstrating 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 the involved carriers exceeded $2 million
during the 12-month period ending in December 2020, see 49 CFR
1182.2(a)(5). (Appl. 11-14.)
EQT asserts that the transaction will not alter the adequacy or
nature of the transportation currently provided by the Target Carriers.
(Id. at 13.) According to the application, EQT plans to invest in
improved digital technology, such as touring software and various in-
bus technologies to track and improve driver performance and safety
metrics, and to accelerate existing plans made by First Student, Inc.,
and First Transit, Inc., for the acquisition of electric vehicles and
associated charging infrastructure. (Id. at 12.) EQT states that,
through its investment in electrification of the Target Carrier fleets,
it hopes to expedite a broader interest in the electrification and
sustainability of motor vehicle fleets nationwide. (Id. at 13.)
Further, EQT plans to retain the current management of each Target
Carrier, including safety managers at both the corporate and local
levels. (Id.) EQT also submits that the proposed transaction will have
no adverse effect on the level of competition in any sector of the
motor passenger business in which the Target Carriers operate because
EQT does not control other federally regulated motor passenger carriers
operating in the United States. (Id. at 3.)
As to the fixed charges that will result from the proposed
transaction, EQT states that the cost of the proposed transaction is
being financed by a combination of debt and equity capital. (Id. at
13.) EQT states that the Target Carriers each have a stable revenue
stream that is more than adequate to service existing and anticipated
debt. (Id.) EQT also states that the Target Carriers will have access
to funds from EQT Infrastructure V (which has an estimated total fund
size of approximately $18 billion) and other EQT funds and will have
the backing of EQT AB's considerable capitalization. (Id.)
According to EQT, the transaction is not expected to adversely
affect current employees of the Target Carriers. (Id. at 14.) EQT
states that it has no plans for employee layoffs or reductions in
staffing and does not plan to adversely change existing employee
benefits. (Id.)
The Board finds that the acquisition of the Target Carriers 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
[[Page 27666]]
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.
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 July 7, 2021, unless opposing
comments are filed by July 6, 2021.
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: May 17, 2021.
By the Board, Board Members Begeman, Fuchs, Oberman, Primus, and
Schultz.
Kenyatta Clay,
Clearance Clerk.
[FR Doc. 2021-10782 Filed 5-20-21; 8:45 am]
BILLING CODE 4915-01-P
