[Federal Register Volume 76, Number 240 (Wednesday, December 14, 2011)]
[Notices]
[Pages 77888-77889]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-32057]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[Docket No. MC-F 21042]


Student Transportation of America, Inc.--Control--Dairyland 
Buses, Inc.

AGENCY: Surface Transportation Board.

ACTION: Notice Tentatively Approving and Authorizing Finance 
Transaction.

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SUMMARY: Student Transportation of America, Inc., a motor carrier of 
passengers (Student Transportation), has filed an application under 49 
U.S.C. 14303 for its acquisition of control of Dairyland Buses, Inc., 
also a motor carrier of passengers (Dairyland). 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 
under 49 CFR 1182.5 and 1182.8.

DATES: Comments must be filed by January 27, 2012. Student 
Transportation may file a reply by February 10, 2012. If no comments 
are filed by January 27, 2012, this notice shall be effective on that 
date.

ADDRESSES: Send an original and 10 copies of any comments referring to 
Docket No. MC-F 21042 to: Surface Transportation Board, 395 E Street 
SW., Washington, DC 20423-0001. In addition, send one copy of comments 
to Student Transportation's representative: Mark J. Andrews, 
Strasburger & Price, LLP, Suite 640, 1700 K Street NW., Washington, DC 
20006.

FOR FURTHER INFORMATION CONTACT: Julia M. Farr, (202) 245-0359. Federal 
Information Relay Service (FIRS) for the hearing impaired: 1-(800) 877-
8339.

SUPPLEMENTARY INFORMATION: Student Transportation is a publicly held 
corporation established under the laws of New Jersey. It holds 
authority from the Federal Motor Carrier Safety Administration (FMCSA) 
as a motor carrier providing interstate charter

[[Page 77889]]

passenger services to the public (MC-31422). Dairyland, a corporation 
established under Wisconsin law, also holds a FMCSA license (MC-170747) 
and is owned by Coach USA, Inc., a Delaware corporation and noncarrier. 
The core business of both Student Transportation and Dairyland is 
transporting students to and from school, a type of transportation not 
subject to Board jurisdiction. See 49 U.S.C. 13506(a)(1). According to 
the application, approximately 97 percent of Student Transportation's 
revenue is derived from school bus services exempt from FMCSA licensing 
jurisdiction; the remaining 3 percent is derived from incidental 
charter operations that do require FMCSA authority if they are 
interstate in nature. Similarly, the application indicates that 
Dairyland derives the vast majority of its revenue from exempt school 
bus transportation, with the remainder involving incidental charter 
operations. The application states that FMCSA-regulated charter and 
special operations have accounted for an insignificant percentage of 
Student Transportation's and Dairyland's total revenues.
    Under the proposed transaction, Student Transportation seeks 
permission to acquire all of the shares of Dairyland. According to the 
application, the shares of Dairyland were anticipated to be transferred 
on or about November 14, 2011, from their current owner, Coach USA, 
Inc., into an independent voting trust established under 49 CFR pt 
1013--Guidelines for the Proper Use of Voting Trusts, where they would 
remain until the proposed transaction is dismissed by Student 
Transportation or disapproved by the Board, or until Board approval is 
final and effective.
    Under 49 U.S.C. 14303(b), the Board must approve and authorize a 
transaction it finds consistent with the public interest, taking into 
consideration at least: (1) The effect of the transaction on the 
adequacy of transportation to the public; (2) the total fixed charges 
that result; and (3) the interest of affected carrier employees. 
Student Transportation has submitted information, as required by 49 CFR 
1182.2, including the information to demonstrate that the proposed 
transaction is consistent with the public interest under 49 U.S.C. 
14303(b), and a statement that the 12-month aggregate gross operating 
revenues of Student Transportation and Dairyland exceeded $2 million.
    Student Transportation states that the proposed transaction will 
have no significant impact on the adequacy of transportation services 
available to the public because Student Transportation has no intention 
of substantially changing the physical operations historically 
conducted by Dairyland. With respect to fixed charges, Student 
Transportation states that the proposed transaction will reduce not 
only interest costs but also a variety of other overhead and variable 
costs that Dairyland might otherwise bear. According to Student 
Transportation, the transaction will have a positive impact on employee 
interests, as the economies and efficiencies resulting from the 
proposed transaction, will directly benefit Dairyland's employees by 
maintaining job security and retaining or expanding the volume of 
available work. Additional information, including a copy of the 
application, may be obtained from Student Transportation's 
representative.
    On the basis of the application, the Board finds that the proposed 
acquisition of control is consistent with the public interest and 
should be tentatively approved and authorized. If any opposing comments 
are timely filed, this finding 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.
    The party's application and Board decisions and notices are 
available on our Web site at http://www.stb.dot.gov.
    This decision will not significantly affect either the quality of 
the human environment or the conservation of energy resources.
    It is ordered:
    1. The proposed finance 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 as having been vacated.
    3. This notice will be effective January 27, 2012, unless opposing 
comments are timely filed.
    4. A copy of this decision will be served on: (1) U.S. Department 
of Transportation, Federal Motor Carrier Safety Administration, 1200 
New Jersey Avenue SE., Washington, DC 20590; (2) the U.S. Department of 
Justice, Antitrust Division, 10th Street & Pennsylvania Avenue NW., 
Washington, DC 20530; and (3) the U.S. Department of Transportation, 
Office of the General Counsel, 1200 New Jersey Avenue SE., Washington, 
DC 20590.

    Decided: December 8, 2011.

    By the Board, Chairman Elliott, Vice Chairman Begeman, and 
Commissioner Mulvey.
Jeffrey Herzig,
Clearance Clerk.
[FR Doc. 2011-32057 Filed 12-13-11; 8:45 am]
BILLING CODE 4915-01-P