81_FR_77208 81 FR 76994 - National Express LLC-Acquisition of Control-Trinity, Inc., Trinity Cars, Inc., and Trinity Student Delivery, LLC

81 FR 76994 - National Express LLC-Acquisition of Control-Trinity, Inc., Trinity Cars, Inc., and Trinity Student Delivery, LLC

SURFACE TRANSPORTATION BOARD

Federal Register Volume 81, Issue 214 (November 4, 2016)

Page Range76994-76997
FR Document2016-26724

On October 7, 2016, National Express LLC (National Express or Applicant), a noncarrier, filed an application under 49 U.S.C. 14303 to acquire control of Trinity, Inc. (Trinity), Trinity Cars, Inc. (Trinity Cars), and Trinity Student Delivery, LLC (Trinity Student) (collectively, 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 & 1182.8.

Federal Register, Volume 81 Issue 214 (Friday, November 4, 2016)
[Federal Register Volume 81, Number 214 (Friday, November 4, 2016)]
[Notices]
[Pages 76994-76997]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-26724]


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SURFACE TRANSPORTATION BOARD

[Docket No. MCF 21073]


National Express LLC--Acquisition of Control--Trinity, Inc., 
Trinity Cars, Inc., and Trinity Student Delivery, LLC

AGENCY: Surface Transportation Board.

ACTION: Notice tentatively approving and authorizing finance 
transaction.

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

SUMMARY: On October 7, 2016, National Express LLC (National Express or 
Applicant), a noncarrier, filed an application under 49 U.S.C. 14303 to 
acquire control of Trinity, Inc. (Trinity), Trinity Cars, Inc. (Trinity 
Cars), and Trinity Student Delivery, LLC (Trinity Student) 
(collectively, 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 & 1182.8.

DATES: Comments must be filed by December 19, 2016. Applicant may file 
a reply by January 3, 2017. If no opposing comments are filed by 
December 19, 2016, this notice shall be effective on December 20, 2016.

ADDRESSES: Send an original and 10 copies of any comments referring to 
Docket No. MCF 21073 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., 10 W. Market Street, Suite 1500, 
Indianapolis, IN 46204.

FOR FURTHER INFORMATION CONTACT: Jonathon Binet (202) 245-0368. Federal 
Information Relay Service (FIRS) for the hearing impaired: 1-800-877-
8339.

SUPPLEMENTARY INFORMATION: Applicant, a noncarrier, states that it is a 
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). Applicant states that Express Group 
indirectly controls the following passenger motor carriers 
(collectively, National Express Affiliated Carriers): Beck Bus 
Transportation Corp. (Beck); Carrier Management Corporation (CMI); 
Diamond Transportation Services, Inc. (Diamond); Durham School 
Services, L.P. (Durham); MV Student Transportation, Inc. (MV); National 
Express Transit Corporation (NETC); National Express Transit Services 
Corporation (NETSC); Petermann Ltd. (LTD); Petermann Northeast LLC 
(Northeast); Petermann Northwest LLC (Northwest); Petermann Southwest 
LLC (Southwest); Petermann STSA, LLC (STSA); The Provider Enterprises, 
Inc. (Provider); Rainbow Management Service Inc. (Rainbow); Robertson 
Transit, Inc. (Robertson); Safeway Training and Transportation Services 
Inc. (Safeway); Septran, Inc. (Septran); Smith Bus Service, Inc. 
(Smith); Suburban Paratransit Service, Inc. (Suburban Paratransit); 
Trans Express,

[[Page 76995]]

Inc. (Trans Express); and White Plains Bus Company, Inc. (White 
Plains).
    Applicant asserts the following facts regarding the National 
Express Affiliated Carriers held by Express Group:
     Beck is a passenger motor carrier primarily engaged in 
providing student school bus transportation services in the states of 
Illinois and Indiana under contracts with regional and local school 
jurisdictions. Beck also provides charter passenger services to the 
public. It holds interstate common carrier authority from Federal Motor 
Carrier Safety Administration under MC-143528.
     CMI is a passenger motor carrier doing business as 
Matthews Bus Company and is primarily engaged in providing student 
school bus transportation services in the state of Pennsylvania under 
contracts with regional and local school jurisdictions. CMI also 
provides intrastate charter passenger services to the public. CMI does 
not have interstate carrier authority as it is not required for the 
operations conducted by CMI.
     Diamond is a passenger motor carrier providing exempt 
interstate and regulated intrastate paratransit and shuttle services in 
the District of Columbia metropolitan area. It does not have interstate 
carrier authority.
     Durham is a passenger motor carrier primarily engaged in 
providing student school bus transportation services in approximately 
32 states under contracts with regional and local school jurisdictions. 
Durham also provides charter passenger services to the public. It holds 
interstate common carrier authority under MC-163066.
     MV is a passenger motor carrier primarily engaged in 
providing student school bus transportation services in the state of 
Missouri under contracts with regional and local school jurisdictions. 
MV also provides charter passenger services to the public. It holds 
interstate common carrier authority under MC-148934.
     NETC is an intrastate passenger motor carrier with its 
principal place of business in Cincinnati, Ohio. NETC does not have 
interstate carrier authority.
     NETSC is a passenger motor carrier engaged primarily in 
providing intrastate transit services in the areas of Westmoreland, PA; 
Arlington, VA; Greensboro, NC; Vallejo, CA; and Yuma, AZ. NETSC does 
not have interstate carrier authority as it is not required for the 
operations conducted by NETSC.
     LTD is a passenger motor carrier primarily engaged in 
providing non-regulated school bus transportation services in the state 
of Ohio under contracts with regional and local school jurisdictions. 
LTD also provides charter passenger services to the public. It holds 
interstate common carrier authority under MC-364668.
     Northeast is a passenger motor carrier primarily engaged 
in providing 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. It holds interstate contract carrier authority 
under MC-723926.
     Northwest is a passenger motor carrier primarily engaged 
in providing non-regulated school bus transportation services under 
contracts with regional and local school jurisdictions. Northwest does 
not have interstate carrier authority as it is not required for the 
operations conducted by Northwest.
     Southwest is a passenger motor carrier primarily engaged 
in providing 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. It 
holds interstate contract carrier authority under MC-644996.
     STSA is a passenger motor carrier primarily engaged in 
providing 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. It holds interstate contract carrier authority under MC-749360.
     Provider is a passenger motor carrier doing business as 
Provider Bus, and is primarily engaged in providing non-regulated 
school bus transportation services in the state of New Hampshire under 
contracts with regional and local school jurisdictions. Provider does 
not have interstate carrier authority as it is not required for the 
operations conducted by Provider.
     Rainbow provides interstate and intrastate charter and 
special party passenger transportation services in the state of New 
York. It holds interstate passenger common carrier authority under MC-
490015.
     Robertson is a passenger motor carrier primarily engaged 
in providing non-regulated school bus transportation services in the 
state of New Hampshire under contracts with regional and local school 
jurisdictions. Robertson also provides charter passenger service to the 
public. It does not have active interstate carrier authority, though 
MC-176053 is assigned to it.
     Safeway is a passenger motor carrier primarily engaged in 
providing non-regulated school bus transportation services in the state 
of New Hampshire under contracts with regional and local school 
jurisdictions. It does not have active interstate carrier authority, 
though MC-522039 is assigned to it.
     Septran is a passenger motor carrier primarily engaged in 
providing non-regulated school bus transportation services in the state 
of Illinois under contracts with regional and local school 
jurisdictions. It does not have active interstate carrier authority, 
though MC-795208 is assigned to it.
     Smith is a passenger motor carrier primarily engaged in 
providing non-regulated school bus transportation services in the state 
of Maryland and surrounding areas under contracts with regional and 
local school jurisdictions. Smith does not have interstate carrier 
authority as it is not required for the operations conducted by Smith.
     Suburban Paratransit is a motor carrier providing 
paratransit services primarily in Westchester County and Bronx, N.Y. 
Suburban Paratransit does not have interstate carrier authority as it 
is not required for the operations conducted by Suburban Paratransit.
     Trans Express provides interstate and intrastate passenger 
transportation services in the state of New York. It holds interstate 
passenger common carrier authority under MC-187819.
     White Plains is a passenger motor carrier doing business 
as Suburban Charters, and it operates primarily as a provider of non-
regulated school bus transportation services in the state of New York. 
White Plains also operates as a motor passenger carrier providing 
charter service to the public. It holds interstate passenger common 
carrier authority under MC-160624.
    Applicant asserts the following facts with regard to the 
Acquisition Carriers:
     Trinity is a Michigan corporation operating primarily as a 
provider of non-regulated school bus transportation services in 
southeastern Michigan, and also operates as a passenger motor carrier 
providing charter service to the public. Trinity holds common carrier 
operating authority under MC-364003.
     Trinity Cars is also a Michigan corporation, operating as 
an intrastate passenger motor carrier as a provider of for-hire sedan 
and van service in southeastern Michigan. Trinity Cars holds interstate 
operating authority under MC-632139.
     Trinity Student is a Michigan limited liability company 
and a wholly-owned subsidiary of Trinity. Trinity Student operates 
primarily as a provider of non-regulated school bus transportation 
services in the areas of Toledo and Cleveland, Ohio. Trinity

[[Page 76996]]

Student also provides interstate charter passenger services. For 
purposes of its interstate passenger operations, Trinity Student holds 
common and contract carrier operating authority under MC-836335.
    Applicant states that all of the issued and outstanding stock of 
Trinity and Trinity Cars is owned and held by Jerry Sheppard, Jr., 
Trustee of the Jerry Sheppard, Jr. Revocable Inter-Vivos Trust U/A/D 
Sept. 24, 2003, as amended (Jerry Sheppard Trust), and Rebetha J. 
Sheppard, Trustee of the Rebetha J. Sheppard Revocable Inter-Vivos 
Trust U/A/D Sept. 24, 2003, as amended (Rebetha Sheppard Trust) 
(collectively, Sellers).
    Applicant asserts that there is one affiliate of the Acquisition 
Carriers, Trinity Coach, LLC, though it is not a part of the 
contemplated transaction. Applicant states that Trinity Coach, LLC, is 
a Michigan limited liability company that is a passenger motor carrier 
providing interstate services under common carrier authority under MC-
537169. Jerry Sheppard, Jr., individually, holds a 100% membership 
interest in Trinity Coach, LLC.
    Applicant further states that, other than the National Express 
Affiliated Carriers, the Acquisition Carriers, and Trinity Coach, there 
are no other affiliated carriers with regulated interstate operations, 
and the Sellers have no other direct or indirect ownership interest in 
any other interstate passenger motor carrier.
    Applicant also asserts that it would acquire direct 100% control of 
Trinity and Trinity Cars through stock ownership, and indirect control 
of Trinity Student as a wholly-owned subsidiary of Trinity.
    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 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), and a statement that the aggregate gross operating revenues 
of the National Express Affiliated Carriers and the Acquisition 
Carriers exceeded $2 million for the preceding 12-month period. See 49 
U.S.C. 14303(g).\1\
---------------------------------------------------------------------------

    \1\ Applicants with gross operating revenues exceeding $2 
million are required to meet the requirements of 49 CFR 1182.
---------------------------------------------------------------------------

    Applicant submits that the proposed transaction would have no 
significant impact on the adequacy of transportation services to the 
public, as the Acquisition Carriers would continue to provide the 
services they currently provide using the same names for the 
foreseeable future. Applicant states that the Acquisition Carriers 
``will continue to operate, but going forward, will be operating within 
the National Express corporate family.'' (Appl. 14.)
    According to Applicant, ``[t]he addition of the Acquisition 
Carriers 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 market, but in different geographic areas.'' (Id.) Applicant 
asserts that the Acquisition Carriers are experienced in some of the 
same market segments already served by some of the National Express 
Affiliated Carriers. Applicant expects the transaction to result in 
operating efficiencies and cost savings derived from economies of 
scale, all of which, Applicant states, would help to ensure the 
provision of adequate service to the public. Applicant further asserts 
that bringing the Acquisition Carriers 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.)
    Applicant also claims that neither competition nor the public 
interest would be adversely affected by the contemplated transaction. 
Applicant states that the Acquisition Carriers are ``relatively small 
carriers in the overall markets in which they compete: Unregulated 
metropolitan school bus operations, providers of charter services, and 
providers of sedan and van services.'' (Id.) Applicant states that 
school bus operators typically occupy a limited portion of the charter 
business because (i) the equipment offered is not as comfortable as 
that offered by motor coach operators; and (ii) scheduling demands 
imposed by the primary school bus operation impose major constraints on 
charter services that can be offered. It further explains that the 
sedan and van services business sector is comprised of a number of 
providers, with no provider having a dominant market share in the 
sector. Applicant also explains that the charter and sedan and van 
services offered by the Acquisition Carriers are geographically 
dispersed from those of the National Express Affiliated Carriers, and 
that there is limited overlap in service areas and/or in customer bases 
among the National Express Affiliated Carriers and the Acquisition 
Carriers. Thus, Applicant states 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.
    Applicant asserts that there are no fixed charges associated with 
the contemplated transaction. Applicant also states that it does not 
anticipate a measurable reduction in force or changes in compensation 
levels and/or benefits to employees. Applicant submits, however, that 
staffing redundancies could potentially result in limited downsizing of 
back-office or managerial level personnel.
    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 Web site 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 December 20, 2016, unless opposing 
comments are filed by December 19, 2016.
    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;

[[Page 76997]]

and (3) the U.S. Department of Transportation, Office of the General 
Counsel, 1200 New Jersey Avenue SE., Washington, DC 20590.

    Decided: November 1, 2016.

    By the Board, Chairman Elliott, Vice Chairman Miller, and 
Commissioner Begeman.
Brendetta S. Jones,
Clearance Clerk.
[FR Doc. 2016-26724 Filed 11-3-16; 8:45 am]
 BILLING CODE 4915-01-P



                                                    76994                        Federal Register / Vol. 81, No. 214 / Friday, November 4, 2016 / Notices

                                                    and password. Matters requiring higher                     intergovernmental organizations,                   SUMMARY:   On October 7, 2016, National
                                                    assurance will require multi-factor                        relations with non-governmental                    Express LLC (National Express or
                                                    credentials, such as a certificate based                   organizations, World Maritime Day,                 Applicant), a noncarrier, filed an
                                                    login.                                                     Report of the Day of the Seafarer, and             application under 49 U.S.C. 14303 to
                                                      Dated: October 26, 2016.                                 IMO Maritime Ambassador Scheme)                    acquire control of Trinity, Inc. (Trinity),
                                                    Lisa Aguirre,
                                                                                                            —Report on the status of the convention               Trinity Cars, Inc. (Trinity Cars), and
                                                                                                               and membership of the Organization                 Trinity Student Delivery, LLC (Trinity
                                                    Managing Director, Directorate of Defense
                                                                                                            —Report on the status of conventions                  Student) (collectively, Acquisition
                                                    Trade Controls, Department of State.
                                                                                                               and other multilateral instruments in              Carriers). The Board is tentatively
                                                    [FR Doc. 2016–26715 Filed 11–3–16; 8:45 am]
                                                                                                               respect of which the Organization                  approving and authorizing the
                                                    BILLING CODE 4710–25–P
                                                                                                               performs functions                                 transaction, and, if no opposing
                                                                                                            —Place, date and duration of the next                 comments are timely filed, this notice
                                                                                                               two sessions of the Council and                    will be the final Board action. Persons
                                                    DEPARTMENT OF STATE                                                                                           wishing to oppose the application must
                                                                                                               substantive items for inclusion in the
                                                    [Public Notice: 9779]                                      provisional agendas for the next two               follow the rules at 49 CFR 1182.5 &
                                                                                                               sessions of Council (C 118 and C 119)              1182.8.
                                                    Notice of Public Meeting                                —Supplementary agenda items, if any                   DATES: Comments must be filed by
                                                       The Department of State will conduct                    Members of the public may attend                   December 19, 2016. Applicant may file
                                                    an open meeting at 9:00 a.m. on                         this meeting up to the seating capacity               a reply by January 3, 2017. If no
                                                    November 9, 2016, in Room 5L18–01 of                    of the room. To facilitate the building               opposing comments are filed by
                                                    the Douglas A. Munro Coast Guard                        security process, and to request                      December 19, 2016, this notice shall be
                                                    Headquarters Building at St. Elizabeth’s,               reasonable accommodation, those who                   effective on December 20, 2016.
                                                    2703 Martin Luther King Jr. Avenue SE.,                 plan to attend should contact the                     ADDRESSES: Send an original and 10
                                                    Washington, DC 20593. The primary                       meeting coordinator, LCDR Tiffany                     copies of any comments referring to
                                                    purpose of the meeting is to prepare for                Duffy, by email at Tiffany.A.Duffy@                   Docket No. MCF 21073 to: Surface
                                                    the one hundred and seventeenth                         uscg.mil, by phone at (202) 372–1362,                 Transportation Board, 395 E Street SW.,
                                                    session of the International Maritime                   by fax at (202) 372–1925, or in writing               Washington, DC 20423–0001. In
                                                    Organization’s (IMO) Council to be held                 at 2703 Martin Luther King Jr. Ave. SE.,              addition, send one copy of comments to
                                                    at the IMO Headquarters, United                         Stop 7509, Washington, DC 20593–7509                  Applicant’s representative: Andrew K.
                                                    Kingdom, December 5–9, 2016.                            not later than November 2, 2016.                      Light, Scopelitis, Garvin, Light, Hanson
                                                       The agenda items to be considered                    Requests made after November 2, 2016                  & Feary, P.C., 10 W. Market Street, Suite
                                                    include:                                                might not be able to be accommodated.                 1500, Indianapolis, IN 46204.
                                                    —Adoption of the agenda                                    Please note that due to security                   FOR FURTHER INFORMATION CONTACT:
                                                    —Report of the Secretary-General on                     considerations, two valid, government                 Jonathon Binet (202) 245–0368. Federal
                                                       credentials                                          issued photo identifications must be                  Information Relay Service (FIRS) for the
                                                    —Rules of Procedure of the Council                      presented to gain entrance to Coast                   hearing impaired: 1–800–877–8339.
                                                    —Strategy, planning and reform                          Guard Headquarters. It is recommended                 SUPPLEMENTARY INFORMATION: Applicant,
                                                    —Resource management (Human                             that attendees arrive to Coast Guard                  a noncarrier, states that it is a holding
                                                       resource matters, report on                          Headquarters no later than 30 minutes                 company organized under the laws of
                                                       investments, budget considerations                   ahead of the scheduled meeting for the                the state of Delaware that is indirectly
                                                       for 2016–2017, Results-based budget:                 security screening process. Coast Guard               controlled by a British corporation,
                                                       Outline of budgetary implications for                Headquarters is accessible by taxi and                National Express Group, PLC (Express
                                                       2018–2019)                                           public transportation. Parking in the                 Group). Applicant states that Express
                                                    —IMO Member State Audit Scheme                          vicinity of the building is extremely                 Group indirectly controls the following
                                                    —Consideration of the report to the                     limited. Additional information                       passenger motor carriers (collectively,
                                                       Marine Environmental Protection                      regarding this and other IMO public                   National Express Affiliated Carriers):
                                                    —Consideration of the report of the                     meetings may be found at:                             Beck Bus Transportation Corp. (Beck);
                                                       Technical Cooperation Committee                      www.uscg.mil/imo.                                     Carrier Management Corporation (CMI);
                                                    —Technical Cooperation Fund: Report                       Dated: October 21, 2016.                            Diamond Transportation Services, Inc.
                                                       on activities of the 2015 programme                  Jonathan W. Burby,                                    (Diamond); Durham School Services,
                                                    —IMO International Maritime Law                                                                               L.P. (Durham); MV Student
                                                                                                            Coast Guard Liaison Officer, Office of Ocean
                                                       Institute                                            and Polar Affairs, Department of State.               Transportation, Inc. (MV); National
                                                    —Report on the 38th Consultative                                                                              Express Transit Corporation (NETC);
                                                                                                            [FR Doc. 2016–26716 Filed 11–3–16; 8:45 am]
                                                       Meeting of Contracting Parties to the                                                                      National Express Transit Services
                                                                                                            BILLING CODE 4710–09–P
                                                       London Convention 1972 and the                                                                             Corporation (NETSC); Petermann Ltd.
                                                       11th Meeting of Contracting Parties to                                                                     (LTD); Petermann Northeast LLC
                                                       the 1996 Protocol to the London                                                                            (Northeast); Petermann Northwest LLC
                                                       Convention                                           SURFACE TRANSPORTATION BOARD                          (Northwest); Petermann Southwest LLC
                                                    —Protection of vital shipping lanes                                                                           (Southwest); Petermann STSA, LLC
                                                    —Periodic review of administrative                      [Docket No. MCF 21073]                                (STSA); The Provider Enterprises, Inc.
asabaliauskas on DSK3SPTVN1PROD with NOTICES




                                                       requirements in mandatory IMO                                                                              (Provider); Rainbow Management
                                                       instruments                                          National Express LLC—Acquisition of                   Service Inc. (Rainbow); Robertson
                                                    —Principles to be considered in the                     Control—Trinity, Inc., Trinity Cars, Inc.,            Transit, Inc. (Robertson); Safeway
                                                       review of existing requirements and                  and Trinity Student Delivery, LLC                     Training and Transportation Services
                                                       the development of new requirements                  AGENCY: Surface Transportation Board.                 Inc. (Safeway); Septran, Inc. (Septran);
                                                    —External relations (With the U.N. and                                                                        Smith Bus Service, Inc. (Smith);
                                                                                                            ACTION:Notice tentatively approving
                                                       the specialized agencies, Joint                                                                            Suburban Paratransit Service, Inc.
                                                                                                            and authorizing finance transaction.
                                                       Inspection Unit, relations with                                                                            (Suburban Paratransit); Trans Express,


                                               VerDate Sep<11>2014   17:52 Nov 03, 2016   Jkt 241001   PO 00000   Frm 00084   Fmt 4703   Sfmt 4703   E:\FR\FM\04NON1.SGM   04NON1


                                                                                 Federal Register / Vol. 81, No. 214 / Friday, November 4, 2016 / Notices                                            76995

                                                    Inc. (Trans Express); and White Plains                  contracts with regional and local school              non-regulated school bus transportation
                                                    Bus Company, Inc. (White Plains).                       jurisdictions. LTD also provides charter              services in the state of New Hampshire
                                                       Applicant asserts the following facts                passenger services to the public. It holds            under contracts with regional and local
                                                    regarding the National Express                          interstate common carrier authority                   school jurisdictions. It does not have
                                                    Affiliated Carriers held by Express                     under MC–364668.                                      active interstate carrier authority,
                                                    Group:                                                     • Northeast is a passenger motor                   though MC–522039 is assigned to it.
                                                       • Beck is a passenger motor carrier                  carrier primarily engaged in providing                   • Septran is a passenger motor carrier
                                                    primarily engaged in providing student                  student school bus transportation                     primarily engaged in providing non-
                                                    school bus transportation services in the               services, primarily in the states of Ohio             regulated school bus transportation
                                                    states of Illinois and Indiana under                    and Pennsylvania under contracts with                 services in the state of Illinois under
                                                    contracts with regional and local school                regional and local school jurisdictions.              contracts with regional and local school
                                                    jurisdictions. Beck also provides charter               Northeast also provides charter                       jurisdictions. It does not have active
                                                    passenger services to the public. It holds              passenger services to the public. It holds            interstate carrier authority, though MC–
                                                    interstate common carrier authority                     interstate contract carrier authority                 795208 is assigned to it.
                                                    from Federal Motor Carrier Safety                       under MC–723926.                                         • Smith is a passenger motor carrier
                                                    Administration under MC–143528.                            • Northwest is a passenger motor                   primarily engaged in providing non-
                                                       • CMI is a passenger motor carrier                   carrier primarily engaged in providing                regulated school bus transportation
                                                    doing business as Matthews Bus                          non-regulated school bus transportation               services in the state of Maryland and
                                                    Company and is primarily engaged in                     services under contracts with regional                surrounding areas under contracts with
                                                    providing student school bus                            and local school jurisdictions.                       regional and local school jurisdictions.
                                                    transportation services in the state of                 Northwest does not have interstate                    Smith does not have interstate carrier
                                                    Pennsylvania under contracts with                       carrier authority as it is not required for           authority as it is not required for the
                                                    regional and local school jurisdictions.                the operations conducted by Northwest.                operations conducted by Smith.
                                                    CMI also provides intrastate charter                       • Southwest is a passenger motor                      • Suburban Paratransit is a motor
                                                    passenger services to the public. CMI                   carrier primarily engaged in providing                carrier providing paratransit services
                                                    does not have interstate carrier authority              student school bus transportation                     primarily in Westchester County and
                                                    as it is not required for the operations                services in the state of Texas under                  Bronx, N.Y. Suburban Paratransit does
                                                    conducted by CMI.                                       contracts with regional and local school              not have interstate carrier authority as it
                                                       • Diamond is a passenger motor                       jurisdictions. Southwest also provides                is not required for the operations
                                                    carrier providing exempt interstate and                 charter passenger services to the public.             conducted by Suburban Paratransit.
                                                    regulated intrastate paratransit and                    It holds interstate contract carrier                     • Trans Express provides interstate
                                                    shuttle services in the District of                     authority under MC–644996.                            and intrastate passenger transportation
                                                    Columbia metropolitan area. It does not                    • STSA is a passenger motor carrier                services in the state of New York. It
                                                    have interstate carrier authority.                      primarily engaged in providing student                holds interstate passenger common
                                                       • Durham is a passenger motor carrier                school bus transportation services,                   carrier authority under MC–187819.
                                                    primarily engaged in providing student                  primarily in the state of Kansas under                   • White Plains is a passenger motor
                                                    school bus transportation services in                   contracts with regional and local school              carrier doing business as Suburban
                                                    approximately 32 states under contracts                 jurisdictions. STSA also provides                     Charters, and it operates primarily as a
                                                    with regional and local school                          charter passenger services to the public.             provider of non-regulated school bus
                                                    jurisdictions. Durham also provides                     It holds interstate contract carrier                  transportation services in the state of
                                                    charter passenger services to the public.               authority under MC–749360.                            New York. White Plains also operates as
                                                    It holds interstate common carrier                         • Provider is a passenger motor                    a motor passenger carrier providing
                                                    authority under MC–163066.                              carrier doing business as Provider Bus,               charter service to the public. It holds
                                                       • MV is a passenger motor carrier                    and is primarily engaged in providing                 interstate passenger common carrier
                                                    primarily engaged in providing student                  non-regulated school bus transportation               authority under MC–160624.
                                                    school bus transportation services in the               services in the state of New Hampshire                   Applicant asserts the following facts
                                                    state of Missouri under contracts with                  under contracts with regional and local               with regard to the Acquisition Carriers:
                                                    regional and local school jurisdictions.                school jurisdictions. Provider does not                  • Trinity is a Michigan corporation
                                                    MV also provides charter passenger                      have interstate carrier authority as it is            operating primarily as a provider of
                                                    services to the public. It holds interstate             not required for the operations                       non-regulated school bus transportation
                                                    common carrier authority under MC–                      conducted by Provider.                                services in southeastern Michigan, and
                                                    148934.                                                    • Rainbow provides interstate and                  also operates as a passenger motor
                                                       • NETC is an intrastate passenger                    intrastate charter and special party                  carrier providing charter service to the
                                                    motor carrier with its principal place of               passenger transportation services in the              public. Trinity holds common carrier
                                                    business in Cincinnati, Ohio. NETC                      state of New York. It holds interstate                operating authority under MC–364003.
                                                    does not have interstate carrier                        passenger common carrier authority                       • Trinity Cars is also a Michigan
                                                    authority.                                              under MC–490015.                                      corporation, operating as an intrastate
                                                       • NETSC is a passenger motor carrier                    • Robertson is a passenger motor                   passenger motor carrier as a provider of
                                                    engaged primarily in providing                          carrier primarily engaged in providing                for-hire sedan and van service in
                                                    intrastate transit services in the areas of             non-regulated school bus transportation               southeastern Michigan. Trinity Cars
                                                    Westmoreland, PA; Arlington, VA;                        services in the state of New Hampshire                holds interstate operating authority
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                                                    Greensboro, NC; Vallejo, CA; and Yuma,                  under contracts with regional and local               under MC–632139.
                                                    AZ. NETSC does not have interstate                      school jurisdictions. Robertson also                     • Trinity Student is a Michigan
                                                    carrier authority as it is not required for             provides charter passenger service to the             limited liability company and a wholly-
                                                    the operations conducted by NETSC.                      public. It does not have active interstate            owned subsidiary of Trinity. Trinity
                                                       • LTD is a passenger motor carrier                   carrier authority, though MC–176053 is                Student operates primarily as a provider
                                                    primarily engaged in providing non-                     assigned to it.                                       of non-regulated school bus
                                                    regulated school bus transportation                        • Safeway is a passenger motor                     transportation services in the areas of
                                                    services in the state of Ohio under                     carrier primarily engaged in providing                Toledo and Cleveland, Ohio. Trinity


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                                                    76996                        Federal Register / Vol. 81, No. 214 / Friday, November 4, 2016 / Notices

                                                    Student also provides interstate charter                million for the preceding 12-month                    is comprised of a number of providers,
                                                    passenger services. For purposes of its                 period. See 49 U.S.C. 14303(g).1                      with no provider having a dominant
                                                    interstate passenger operations, Trinity                   Applicant submits that the proposed                market share in the sector. Applicant
                                                    Student holds common and contract                       transaction would have no significant                 also explains that the charter and sedan
                                                    carrier operating authority under MC–                   impact on the adequacy of                             and van services offered by the
                                                    836335.                                                 transportation services to the public, as             Acquisition Carriers are geographically
                                                                                                            the Acquisition Carriers would continue               dispersed from those of the National
                                                       Applicant states that all of the issued              to provide the services they currently                Express Affiliated Carriers, and that
                                                    and outstanding stock of Trinity and                    provide using the same names for the                  there is limited overlap in service areas
                                                    Trinity Cars is owned and held by Jerry                 foreseeable future. Applicant states that             and/or in customer bases among the
                                                    Sheppard, Jr., Trustee of the Jerry                     the Acquisition Carriers ‘‘will continue              National Express Affiliated Carriers and
                                                    Sheppard, Jr. Revocable Inter-Vivos                     to operate, but going forward, will be                the Acquisition Carriers. Thus,
                                                    Trust U/A/D Sept. 24, 2003, as amended                  operating within the National Express                 Applicant states that the impact of the
                                                    (Jerry Sheppard Trust), and Rebetha J.                  corporate family.’’ (Appl. 14.)                       contemplated transaction on the
                                                    Sheppard, Trustee of the Rebetha J.                        According to Applicant, ‘‘[t]he                    regulated motor carrier industry would
                                                    Sheppard Revocable Inter-Vivos Trust                    addition of the Acquisition Carriers to               be minimal at most and that neither
                                                    U/A/D Sept. 24, 2003, as amended                        the carriers held by National Express is              competition nor the public interest
                                                    (Rebetha Sheppard Trust) (collectively,                 consistent with the practices within the              would be adversely affected.
                                                    Sellers).                                               passenger motor carrier industry of                      Applicant asserts that there are no
                                                                                                            strong, well-managed transportation                   fixed charges associated with the
                                                       Applicant asserts that there is one
                                                                                                            organizations adapting their corporate                contemplated transaction. Applicant
                                                    affiliate of the Acquisition Carriers,                  structure to operate several different                also states that it does not anticipate a
                                                    Trinity Coach, LLC, though it is not a                  passenger carriers within the same                    measurable reduction in force or
                                                    part of the contemplated transaction.                   market, but in different geographic                   changes in compensation levels and/or
                                                    Applicant states that Trinity Coach,                    areas.’’ (Id.) Applicant asserts that the             benefits to employees. Applicant
                                                    LLC, is a Michigan limited liability                    Acquisition Carriers are experienced in               submits, however, that staffing
                                                    company that is a passenger motor                       some of the same market segments                      redundancies could potentially result in
                                                    carrier providing interstate services                   already served by some of the National                limited downsizing of back-office or
                                                    under common carrier authority under                    Express Affiliated Carriers. Applicant                managerial level personnel.
                                                    MC–537169. Jerry Sheppard, Jr.,                         expects the transaction to result in                     The Board finds that the acquisition
                                                    individually, holds a 100% membership                   operating efficiencies and cost savings               proposed in the application is
                                                    interest in Trinity Coach, LLC.                         derived from economies of scale, all of               consistent with the public interest and
                                                       Applicant further states that, other                 which, Applicant states, would help to                should be tentatively approved and
                                                    than the National Express Affiliated                    ensure the provision of adequate service              authorized. If any opposing comments
                                                    Carriers, the Acquisition Carriers, and                 to the public. Applicant further asserts              are timely filed, these findings will be
                                                    Trinity Coach, there are no other                       that bringing the Acquisition Carriers                deemed vacated, and, unless a final
                                                                                                            within the National Express corporate                 decision can be made on the record as
                                                    affiliated carriers with regulated
                                                                                                            family would serve to enhance the                     developed, a procedural schedule will
                                                    interstate operations, and the Sellers
                                                                                                            viability of the overall organization and             be adopted to reconsider the
                                                    have no other direct or indirect                        the operations of the National Express                application. See 49 CFR 1182.6(c). If no
                                                    ownership interest in any other                         Affiliated Carriers, which would ensure               opposing comments are filed by the
                                                    interstate passenger motor carrier.                     the continued availability of adequate                expiration of the comment period, this
                                                       Applicant also asserts that it would                 passenger transportation service for the              notice will take effect automatically and
                                                    acquire direct 100% control of Trinity                  public. (Id.)                                         will be the final Board action.
                                                    and Trinity Cars through stock                             Applicant also claims that neither                    This action is categorically excluded
                                                    ownership, and indirect control of                      competition nor the public interest                   from environmental review under 49
                                                    Trinity Student as a wholly-owned                       would be adversely affected by the                    CFR 1105.6(c).
                                                    subsidiary of Trinity.                                  contemplated transaction. Applicant                      Board decisions and notices are
                                                                                                            states that the Acquisition Carriers are              available on our Web site at
                                                       Under 49 U.S.C. 14303(b), the Board                  ‘‘relatively small carriers in the overall            ‘‘WWW.STB.GOV’’.
                                                    must approve and authorize a                            markets in which they compete:                           It is ordered:
                                                    transaction that it finds consistent with               Unregulated metropolitan school bus                      1. The proposed transaction is
                                                    the public interest, taking into                        operations, providers of charter services,            approved and authorized, subject to the
                                                    consideration at least: (1) The effect of               and providers of sedan and van                        filing of opposing comments.
                                                    the proposed transaction on the                         services.’’ (Id.) Applicant states that                  2. If opposing comments are timely
                                                    adequacy of transportation to the public;               school bus operators typically occupy a               filed, the findings made in this notice
                                                    (2) the total fixed charges that result;                limited portion of the charter business               will be deemed vacated.
                                                    and (3) the interest of affected carrier                because (i) the equipment offered is not                 3. This notice will be effective
                                                    employees. Applicant submitted                          as comfortable as that offered by motor               December 20, 2016, unless opposing
                                                    information, as required by 49 CFR                      coach operators; and (ii) scheduling                  comments are filed by December 19,
                                                                                                                                                                  2016.
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                                                    1182.2, including information to                        demands imposed by the primary
                                                                                                                                                                     4. A copy of this notice will be served
                                                    demonstrate that the proposed                           school bus operation impose major
                                                                                                                                                                  on: (1) The U.S. Department of
                                                    transaction is consistent with the public               constraints on charter services that can
                                                                                                                                                                  Transportation, Federal Motor Carrier
                                                    interest under 49 U.S.C. 14303(b), and a                be offered. It further explains that the
                                                                                                                                                                  Safety Administration, 1200 New Jersey
                                                    statement that the aggregate gross                      sedan and van services business sector
                                                                                                                                                                  Avenue SE., Washington, DC 20590; (2)
                                                    operating revenues of the National                                                                            the U.S. Department of Justice, Antitrust
                                                                                                              1 Applicants with gross operating revenues
                                                    Express Affiliated Carriers and the                                                                           Division, 10th Street & Pennsylvania
                                                                                                            exceeding $2 million are required to meet the
                                                    Acquisition Carriers exceeded $2                        requirements of 49 CFR 1182.                          Avenue NW., Washington, DC 20530;


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                                                                                 Federal Register / Vol. 81, No. 214 / Friday, November 4, 2016 / Notices                                                 76997

                                                    and (3) the U.S. Department of                            Issued in Washington, DC, on October 31,            improvement of roadway access to the
                                                    Transportation, Office of the General                   2016.                                                 airport by realigning Robin Hood Road.
                                                    Counsel, 1200 New Jersey Avenue SE.,                    Elliott Black,                                        Other associated infrastructure was
                                                    Washington, DC 20590.                                   Director, Office of Airport Planning and              proposed for construction or demolition
                                                                                                            Programming.                                          or relocation including taxiways,
                                                      Decided: November 1, 2016.
                                                                                                            [FR Doc. 2016–26630 Filed 11–3–16; 8:45 am]           lighting, hangers, maintenance facilities,
                                                      By the Board, Chairman Elliott, Vice                                                                        runway safety areas and runway
                                                                                                            BILLING CODE 4910–13–P
                                                    Chairman Miller, and Commissioner                                                                             protection zones.
                                                    Begeman.                                                                                                         In 2001, the FAA began preparing an
                                                    Brendetta S. Jones,                                     DEPARTMENT OF TRANSPORTATION                          EIS for similar projects based on the
                                                    Clearance Clerk.                                                                                              need to accommodate additional
                                                    [FR Doc. 2016–26724 Filed 11–3–16; 8:45 am]             Federal Aviation Administration                       operations at the airport. During the first
                                                    BILLING CODE 4915–01–P
                                                                                                                                                                  EIS process, the needs of the airport
                                                                                                            Notice of Cancellation of                             changed and it was determined that the
                                                                                                            Environmental Impact Statement for                    projects were no longer justified based
                                                                                                            the Norfolk International Airport,                    on the stated need and the preparation
                                                                                                            Norfolk, Virginia                                     of the first EIS was cancelled. In 2013,
                                                    DEPARTMENT OF TRANSPORTATION
                                                                                                            AGENCY:  Federal Aviation                             the FAA agreed to proceed with a
                                                    Federal Aviation Administration                         Administration (FAA), DOT.                            phased second EIS preparation to
                                                                                                                                                                  review a similar project proposed by the
                                                                                                            ACTION: Notice of cancellation of
                                                                                                                                                                  Norfolk Airport Authority. The first
                                                    [Docket No. FAA–2016–9346]                              preparation of environmental impact
                                                                                                                                                                  phase of the project consisted of
                                                                                                            statement.
                                                                                                                                                                  consultant selection, EIS scoping, and
                                                    Passenger Facility Charge (PFC)
                                                                                                            SUMMARY:   The Federal Aviation                       an analysis of the proposed project’s
                                                    Program; Draft FAA Order 5500.1B
                                                                                                            Administration (FAA) announces that it                purpose and need to determine if the
                                                                                                            has discontinued preparation of an                    FAA should continue to the second
                                                    AGENCY:Federal Aviation
                                                                                                            Environmental Impact Statement (EIS)                  phase, which would be completion of
                                                    Administration (FAA), DOT.
                                                                                                            for the proposed construction of new                  the EIS and determination.
                                                    ACTION:   Notice of withdrawal.                         Runway 5R/23L and associated                             At the conclusion of the first phase of
                                                                                                            development at Norfolk International                  the second EIS, the FAA determined
                                                    SUMMARY: FAA is rescinding the draft                    Airport, Norfolk, Virginia. The FAA’s                 that the fundamental purpose and need
                                                    FAA Order 5500.1B, Passenger Facility                   discontinued preparation of the EIS is                of the projects were not supported by
                                                    Charge published on August 5, 2016,                     based upon the completion of the first                the current or anticipated needs of the
                                                    and withdrawing its request for public                  phase of the EIS. Based on the results of             airport. The FAA is now terminating the
                                                    review and comment.                                     the first phase (Scoping and Purpose &                second EIS process. However, the FAA
                                                                                                            Need development), the FAA has                        recognizes the importance of ORF to the
                                                    DATES: The FAA previously extended                                                                            greater Norfolk/Hampton Roads region
                                                                                                            determined that the fundamental
                                                    the comment period to October 31,                                                                             and to the Commonwealth of Virginia.
                                                                                                            purpose and need is not supported by
                                                    2016. FAA subsequently established a                                                                          Moreover, the FAA agrees that a parallel
                                                                                                            the current or anticipated development
                                                    public Docket FAA 2016–9346 and                                                                               runway may still be a viable long-term
                                                                                                            needs of the Airport at this time.
                                                    comments received will be entered into                                                                        plan for the future, if and when
                                                                                                            FOR FURTHER INFORMATION CONTACT:
                                                    the public Docket.                                                                                            operational demand warrants.
                                                                                                            Marcus Brundage, Environmental                        Therefore, the FAA continues to support
                                                    FOR FURTHER INFORMATION CONTACT:   Joe                  Protection Specialist, Federal Aviation               the proposed runway remaining on the
                                                    Hebert, Manager, Financial Analysis                     Administration, Washington Airports                   approved Airport Layout Plan, as
                                                    and Passenger Facility Charge Branch,                   District Office, 23723 Air Freight Lane,              conditionally approved pending
                                                    APP–510, Federal Aviation                               Suite 210, Dulles, Virginia 20166;                    environmental review on October 5,
                                                    Administration, 800 Independence                        Telephone (703) 661–1365.                             2011, and protecting the associated
                                                    Avenue SW., Washington, DC 20591,                       SUPPLEMENTARY INFORMATION: On June                    airspace.
                                                    telephone (202) 267–8375; facsimile                     12, 2015, the FAA, published in the
                                                                                                                                                                    Issued in Dulles, Virginia on October 28,
                                                    (202) 267–5302.                                         Federal Register a Notice of Intent (NOI)             2016.
                                                    SUPPLEMENTARY INFORMATION:     On August                to prepare an Environmental Impact
                                                                                                                                                                  Matthew J. Thys,
                                                                                                            Statement (EIS) and hold two public
                                                    5, 2016, the FAA published a notice and                                                                       Manager, Washington Airports District Office,
                                                                                                            scoping meetings in Norfolk and
                                                    request for comments titled ‘‘Passenger                                                                       Eastern Region.
                                                                                                            Virginia Beach, Virginia (Volume 80,
                                                    Facility Charge (PFC) Program; Draft                                                                          [FR Doc. 2016–26631 Filed 11–3–16; 8:45 am]
                                                                                                            Number 113, FR 33582–33583). The
                                                    FAA Order 5500.1B’’ (81 FR 51963). The                                                                        BILLING CODE 4910–13–P
                                                                                                            public meetings were held at the
                                                    notice requested interested parties
                                                                                                            Bayside High School and at the Holiday
                                                    submit written comments by September
                                                                                                            Inn Norfolk Airport on July 22 and 23,                DEPARTMENT OF TRANSPORTATION
                                                    30, 2016. On September 21, 2016, the                    2015, respectively.
                                                    FAA extended the original comment                         The stated purpose of the project was
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                                                    period by 31 days, from September 30,                                                                         Federal Transit Administration
                                                                                                            to ‘‘meet relevant FAA airfield safety
                                                    2016, to October 31, 2016.                              standards and enhance airfield safety                 [Docket No. FTA–2016–0036]
                                                       After careful consideration, the FAA                 without reducing runway availability.’’
                                                                                                                                                                  Notice of Proposed Buy America
                                                    has decided to rescind the draft Order                  The proposed project included the
                                                                                                                                                                  Waiver for Replacement Parts on
                                                    and cancel the public review process.                   decommissioning and demolition of
                                                                                                                                                                  Diesel Multiple Unit Rail Vehicles
                                                    The FAA will issue a revised draft in                   Runway 14/32, the construction of new
                                                    the near future for public review and                   Runway 5R/23L and associated                          AGENCY:   Federal Transit Administration,
                                                    comment.                                                development at the airport, and                       DOT.


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Document Created: 2018-02-14 08:27:23
Document Modified: 2018-02-14 08:27:23
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
ActionNotice tentatively approving and authorizing finance transaction.
DatesComments must be filed by December 19, 2016. Applicant may file a reply by January 3, 2017. If no opposing comments are filed by December 19, 2016, this notice shall be effective on December 20, 2016.
ContactJonathon Binet (202) 245-0368. Federal Information Relay Service (FIRS) for the hearing impaired: 1-800-877- 8339.
FR Citation81 FR 76994 

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