[Federal Register Volume 82, Number 91 (Friday, May 12, 2017)]
[Notices]
[Pages 22181-22182]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-09657]


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SURFACE TRANSPORTATION BOARD

[Docket No. FD 36109]


Grupo M[eacute]xico, S.A.B. de C.V. and GM[eacute]xico 
Transportes, S.A. de C.V.--Control Exemption--Florida East Coast 
Holdings Corp.

    GM[eacute]xico Transportes, S.A. de C.V. (GM[eacute]xico 
Transportes), a non-carrier holding company, has filed a verified 
notice of exemption pursuant to 49 CFR 1180.2(d)(2) to control Florida 
East Coast Railway, L.L.C. (FECR), a Class II rail carrier operating in 
the state of Florida, and Texas Pacifico Transportation, Ltd. 
(Pacifico), a Class III rail carrier operating in the state of Texas. 
In addition, GM[eacute]xico Transportes filed an amendment to its 
verified notice of exemption to identify and encompass its parent 
company, Grupo M[eacute]xico, S.A.B. de C.V. (Grupo M[eacute]xico), 
also a non-carrier holding company,\1\ and to identify Copper Basin 
Railway, Inc. (Copper Basin), a Class III rail carrier operating in the 
state of Arizona, as an additional carrier which Grupo M[eacute]xico 
controls.\2\ Control of these three rail carriers by Grupo 
M[eacute]xico and GM[eacute]xico Transportes will be effected upon the 
merger of GMXT Florida Merger Sub, Inc. (GMXT Merger Sub), a non-
carrier subsidiary of GM[eacute]xico Transportes, with and into Florida 
East Coast Holdings Corp. (FEC Holdings), a non-carrier currently 
controlling FECR.\3\
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    \1\ GM[eacute]xico Transportes filed the verified notice of 
exemption and the amendment to that notice identifying itself as the 
entity obtaining Board authority in this proceeding. However, 
because Grupo M[eacute]xico is the ultimate parent company of 
GM[eacute]xico Transportes, and because Grupo M[eacute]xico is the 
entity in ultimate control of both Pacifico and Copper Basin, this 
proceeding has been recaptioned to include Grupo M[eacute]xico.
    \2\ It appears that Grupo M[eacute]xico did not obtain Board 
authority to have common control of more than one rail carrier when 
it acquired Copper Basin. If that is the case, and if such authority 
was required, the Board expects Grupo M[eacute]xico to promptly 
submit an appropriate filing for authorization of that common 
control.
    \3\ On April 10, 2017, GM[eacute]xico Transportes and FEC 
Holdings jointly filed a motion for protective order under 49 CFR 
1104.14(b), which will be addressed in a separate decision.
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    The transaction may be consummated on or after May 28, 2017, the 
effective date of the exemption.\4\
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    \4\ Because GM[eacute]xico Transportes amended its verified 
notice of exemption on April 28, 2017, that date is the official 
filing date and the basis for all subsequent dates.

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[[Page 22182]]

    Grupo M[eacute]xico and GM[eacute]xico Transportes represent that: 
(1) The carriers that are the subject of this notice do not connect 
with each other; (2) the control transaction is not a part of a series 
of anticipated transactions that would result in such a connection; and 
(3) the transaction does not involve a Class I carrier. Therefore, the 
transaction is exempt from the prior approval requirements of 49 U.S.C. 
11323. See 49 CFR 1180.2(d)(2).
    Under 49 U.S.C. 10502(g), the Board may not use its exemption 
authority to relieve a rail carrier of its statutory obligation to 
protect the interests of its employees. Because the transaction 
involves one Class II rail carrier and two Class III rail carriers, the 
transaction is subject to the labor protection requirements of 49 
U.S.C. 11326(b) and Wisconsin Central Ltd.--Acquisition Exemption--
Lines of Union Pacific Railroad, 2 S.T.B. 218 (1997).
    If the verified notice contains false or misleading information, 
the exemption is void ab initio. Petitions to revoke the exemption 
under 49 U.S.C. 10502(d) may be filed at any time. The filing of a 
petition to revoke will not automatically stay the effectiveness of the 
exemption. Petitions for stay must be filed by May 19, 2017 (at least 
seven days before the exemption becomes effective).
    An original and 10 copies of all pleadings, referring to Docket No. 
FD 36109, must be filed with the Surface Transportation Board, 395 E 
Street SW., Washington, DC 20423-0001. In addition, a copy of each 
pleading must be served on Charles A. Spitulnik, Kaplan Kirsch & 
Rockwell, 1001 Connecticut Avenue, NW., Suite 800, Washington, DC 
20036.
    Board decisions and notices are available on our Web site at 
``WWW.STB.DOT.GOV.''

    Decided: May 9, 2017.

    By the Board, Rachel D. Campbell, Director, Office of 
Proceedings.
Marline Simeon,
Clearance Clerk.
[FR Doc. 2017-09657 Filed 5-11-17; 8:45 am]
 BILLING CODE 4915-01-P