[Federal Register Volume 90, Number 47 (Wednesday, March 12, 2025)]
[Notices]
[Pages 11868-11870]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-03931]
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SURFACE TRANSPORTATION BOARD
[Docket No. MCF 21130]
Jefferson Partners, L.P. dba Jefferson Lines--Acquisition of
Control--Karst Stage, Inc.
AGENCY: Surface Transportation Board.
ACTION: Notice Tentatively Approving and Authorizing Finance
Transaction.
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SUMMARY: On January 22, 2025, Jefferson Partners, L.P., dba Jefferson
Lines (Jefferson), an interstate passenger motor carrier, submitted an
application for authority to acquire and operate the assets of another
interstate passenger motor carrier, Karst Stage, Inc. (Karst). The
Board is tentatively approving and authorizing this transaction. If no
opposing comments are timely filed, this notice will be the final Board
action.
DATES: Comments must be filed by April 28, 2025. If any comments are
filed, Jefferson may file a reply by May 12, 2025. If no opposing
comments are filed by April 28, 2025, this notice shall be effective on
April 29, 2025.
ADDRESSES: Comments, referring to Docket No. MCF 21130, may be filed
with the Board either via e-filing on the Board's website or in writing
addressed to: Surface Transportation Board, 395 E Street SW,
Washington, DC 20423-0001. In addition, send one copy of comments to
Jefferson's representative: Richard P. Schweitzer, Richard P.
Schweitzer, P.L.L.C., 1717 K Street NW, Suite 900, Washington, DC
20006.
FOR FURTHER INFORMATION CONTACT: Jonathon Binet at (202) 245-0368. If
you require an accommodation under the Americans with Disabilities Act,
please call (202) 245-0245.
[[Page 11869]]
SUPPLEMENTARY INFORMATION: The application \1\ states that Jefferson
Partners, L.P., is a limited partnership that operates as a motor
carrier of passengers under the name Jefferson Lines. (Appl. 1.)
Jefferson's principal place of business in Minneapolis, Minn. (Id.)
According to the application, Jefferson provides regular route service
in 14 states from its Minneapolis location. (Id. at 2.) Jefferson also
provides charter bus service originating in Minneapolis and Billings,
Mont.\2\ (Id.)
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\1\ The application was supplemented on February 11, 2025.
Therefore, for purposes of determining the procedural schedule and
statutory deadlines, the filing date of the application is February
11, 2025. See 49 CFR 1182.4(a).
\2\ Further information, including Jefferson's U.S. Department
of Transportation (USDOT) numbers, motor carrier numbers, and USDOT
safety fitness ratings, can be found in the application. (Id. at 2,
10.)
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The application states that Karst's principal place of business is
in Bozeman, Mont. (Id.) Karst holds interstate authority to carry
passengers \3\ and currently provides charter bus service from Bozeman
to locations throughout the United States. (Id.)
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\3\ Further information about Karst, including its USDOT number,
motor carrier number, and USDOT safety fitness rating, can be found
in the application. (Id. at 2, 10.)
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The application explains that, in this transaction, Jefferson will
purchase and hold all of Karst's assets. (Id. at 3.) The application
states that Jefferson has established a new company, Karst Stage, LLC,
that will operate the assets acquired from Karst and employ Karst's
former employees. (Id. at 2-3.) According to the application, Jefferson
has obtained interstate passenger motor carrier authority for Karst
Stage, LLC, which will become a carrier after the transaction.\4\ (Id.
at 2.) After the transaction, Jefferson and Karst Stage, LLC, will
operate as separate entities but plan to integrate and share certain
management functions. (Id. at 3.) \5\
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\4\ Karst Stage, LLC's motor carrier number can be found in the
application. (Appl. 2.) Its USDOT number can be found in Jefferson's
request for interim approval. Req. for Interim Approval i, Jefferson
Partners, L.P.--Acquis. of Control--Karst Stage, Inc., MCF 21130 TA.
The application states that after consummation of the transaction,
it is expected that Karst's motor carrier operating authority will
be withdrawn. (Id. at 3 n.1.)
\5\ In Jefferson Partners, L.P.--Acquisition of Control--Karst
Stage, Inc., MCF 21130 TA (STB served Feb. 21, 2025), the Board
authorized Jefferson to operate Karst's assets on an interim basis
under 49 U.S.C. 14303(i) and 49 CFR 1182.7(b).
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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 resulting from the proposed transaction, and (3) the interest
of affected carrier employees. Jefferson has submitted the information
required by 49 CFR 1182.2, including information demonstrating that the
proposed transaction is consistent with the public interest under 49
U.S.C. 14303(b), see 49 CFR 1182.2(a)(7), and a jurisdictional
statement under 49 U.S.C. 14303(g) that the aggregate gross operating
revenues of the involved carriers exceeded $2 million during the 12-
month period immediately preceding the filing of the application, see
49 CFR 1182.2(a)(5).
Jefferson asserts that granting the application would be consistent
with the public interest. (Appl. at 5.) According to the application,
the proposed transaction will ensure continued service to Karst's
existing customer base with no reduction in current service levels.
(Id. at 6.) The application states that the proposed transaction will
not result in significant operational changes and that merging the
operations of Jefferson and Karst Stage, LLC, under a single corporate
umbrella will allow both carriers to engage in economies of scale.
(Id.) After the transaction, Jefferson plans to share several
management functions with Karst Stage, LLC, including administration,
safety management, human resources, accounting, and payroll. (Id. at
3.) Jefferson states that combining these functions will increase
efficiency for both companies. (Id. at 6.) The application also states
that the proposed transaction will result in better financial terms
that will facilitate the replacement of aging vehicles with newer, more
efficient equipment. (Id.) Thus, Jefferson contends that the
transaction will result in economies of scale, management efficiencies,
and improved financial terms. (Id.) According to the application,
Jefferson seeks to leverage these benefits to grow the businesses of
both carriers, potentially improving the level of transportation
available to the public. (Id.)
Jefferson anticipates that this transaction could ultimately reduce
the overall fixed charges for financing equipment acquisitions. (Id. at
7.) According to the application, the transaction will strengthen
Jefferson and Karst Stage, LLC's combined financial structure, allowing
them to take advantage of better financial terms. (Id. at 6, 7.)
Jefferson further represents that the proposed transaction will not
have an overall negative impact on the interests of employees. (Id. at
7.) The application states that Jefferson does not anticipate reducing
Karst's workforce or Jefferson's workforce. (Id.) Because Karst Stage,
LLC, will continue Karst's current operations in substantially the same
manner, Karst's employees will have the prospect of continued,
uninterrupted employment. (Id.) Jefferson also expects both Karst
Stage, LLC, and Jefferson to grow over time by taking advantage of
economies of scale, improved financial terms, and increased buying
power, resulting in additions to both driver and non-driver personnel.
(Id.)
Jefferson argues that the proposed transaction will not have a
material adverse effect on competition, explaining that although
Jefferson and Karst both currently provide charter bus service in
Montana, Karst operates out of Bozeman, and Jefferson operates out of
Billings. (Id.) According to the application, Karst and Jefferson have
no common customers and serve largely separate and distinct areas, with
some overlap in the larger markets. (Id. at 7-8.) The application
states that Jefferson and Karst Stage, LLC, will maintain separate
identities after the transaction, and their market shares will not
change. (Id. at 8-9.) The application further states that both Karst
and the Jefferson face strong intra- and intermodal competition in
their respective markets. (Id. at 9.) According to the application,
passengers' ability to travel in their own vehicles as an alternative
to charter bus services exerts additional competitive pressure. (Id. at
9.) Jefferson therefore argues that the proposed transaction will not
diminish competition. (Id.) According to Jefferson, the transaction
will instead support competition by allowing Karst's existing
operations to continue. (Id. at 8.)
Based on Jefferson's representations, the Board finds that the
acquisition as proposed in the application is consistent with the
public interest and should be tentatively approved and authorized. If
any opposing comments are timely filed, these findings will be deemed
vacated and, unless a final decision can be made on the record as
developed, a procedural schedule will be adopted to reconsider the
application. See 49 CFR 1182.6. If no opposing comments are filed by
the expiration of the comment period, this notice will take effect
automatically and will be the final Board action in this proceeding.
This action is categorically excluded from environmental review
under 49 CFR 1105.6(c).
Board decisions and notices are available at www.stb.gov.
It is ordered:
[[Page 11870]]
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 April 29, 2025, unless opposing
comments are filed by April 28, 2025. If any comments are filed,
Jefferson may file a reply by May 12, 2025.
4. A copy of this notice will be served on: (1) the U.S. Department
of Transportation, Federal Motor Carrier Safety Administration, 1200
New Jersey Avenue SE, Washington, DC 20590; (2) the U.S. Department of
Justice, Antitrust Division, 10th Street & Pennsylvania Avenue NW,
Washington, DC 20530; and (3) the U.S. Department of Transportation,
Office of the General Counsel, 1200 New Jersey Avenue SE, Washington,
DC 20590.
Decided: March 6, 2025.
By the Board, Board Members Fuchs, Hedlund, Primus, and Schultz.
Brendetta Jones,
Clearance Clerk.
[FR Doc. 2025-03931 Filed 3-11-25; 8:45 am]
BILLING CODE 4915-01-P