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[Federal Register Volume 88, Number 221 (Friday, November 17, 2023)]
[Notices]
[Pages 80374-80375]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-25491]

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SURFACE TRANSPORTATION BOARD

[Docket No. MCF 21112]

TBL Group, Inc.--Acquisition of Control--East Coast 
Transportation Company of North Florida LLC

AGENCY: Surface Transportation Board.

ACTION: Notice tentatively approving and authorizing finance 
transaction.

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SUMMARY: On October 19, 2023, TBL Group, Inc. (TBL Group or Applicant), 
a holding company, filed an application to acquire substantially all of 
the business operations and assets of East Coast Transportation Company 
of North Florida LLC (East Coast Transportation or Seller). The Board 
is tentatively approving and authorizing the transaction, and, if no 
opposing comments are timely filed, this notice will be the final Board 
action.

DATES: Comments may be filed by January 2, 2024. If any comments are 
filed, TBL Group may file a reply by January 16, 2024. If no opposing 
comments are filed by January 2, 2024, this notice shall be effective 
on January 3, 2024.

ADDRESSES: Comments may be filed with the Board either via e-filing at 
www.stb.gov/proceedings-actions/e-filing/other-filings/ or in writing 
addressed to: Surface Transportation Board, 395 E Street SW, 
Washington, DC 20423-0001. Comments must reference Docket No. MCF 
21112. In addition, one copy of comments must be sent to TBL Group's 
representative: Barry Lewis, United States Transit Funding, Inc., P.O. 
Box 2563, Ormond Beach, FL 32175.

FOR FURTHER INFORMATION CONTACT: Amy Ziehm at (202) 245-0391. If you 
require an accommodation under the Americans with Disabilities Act, 
please call (202) 245-0245.

SUPPLEMENTARY INFORMATION: According to the application, TBL Group is a 
domestic for-profit incorporated entity headquartered in the state of 
Texas. TBL Group has been in operation since 2015 and has two wholly 
owned subsidiaries, GBJ, Inc. and Echo Tours & Charters LP, which 
primarily provide charter, tour, and local intercity and intracity 
transportation in the Houston-Dallas-San Antonio, Texas corridor, as 
well as the Jacksonville, North Florida market. (Appl. 1-2 (pdf pages 
3-4).) According to Applicant, its subsidiaries currently operate 189 
commercial motor vehicles in the above-mentioned markets.\1\ (Id. at 2 
(pdf page 4).)
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    \1\ Additional information about the carriers, including U.S. 
Department of Transportation (USDOT) numbers, motor carrier numbers, 
and USDOT safety fitness ratings, can be found in the application. 
(See Appl. 1-3, 9 (pdf pages 3-5, 11).)
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    East Coast Transportation is an S Corporation with its principal 
place of business located in the state of Florida. (Id.) According to 
the application, East Coast Transportation is federally registered to 
provide passenger-carrier motor services and has been in operation for 
14 years, providing charter service in Florida and other parts of the 
Southeast United States. (Id.) East Coast Transportation operates 23 
motorcoaches and currently has no parent, subsidiary, or affiliate 
companies. (Id.) TBL Group clarified by letter filed October 30, 2023, 
that, through the proposed transaction, Seller intends to transfer 80% 
ownership and control of East Coast Transportation to TBL Group, under 
the name Echo East Coast Transportation, LLC (Echo East Coast 
Transportation), and Robert M. Sobol, Chief Executive Officer of East 
Coast Transportation, will hold 20% ownership of the company. (TBL 
Group Letter 1, Oct. 30, 2023.)

[[Page 80375]]

    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. TBL Group has submitted the information 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), 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 TBL 
Group and East Coast Transportation exceeded $2 million during the 12-
month period immediately preceding the filing of the application, see 
49 CFR 1182.2(a)(5).
    TBL Group asserts that the transaction is consistent with the 
public interest. TBL Group states that the transaction is not expected 
to have a material, detrimental impact on the adequacy of 
transportation services available for the public, but rather it 
anticipates that public services will be improved as operating 
efficiencies will ``enable the carriers to provide service across a 
broad geographic area.'' (Appl. 5 (pdf page 7).) With respect to fixed 
charges, TBL Group asserts that the restructuring of day-to-day 
operations will allow the Applicant to lower operational costs and 
continue to provide affordable passenger-carrier transportation 
services. (Id. at 7 (pdf page 9).) Further, TBL Group anticipates that 
there will be no overall negative impact to employees as a result of 
the transaction. According to TBL Group, the transaction will enable 
the parties to consolidate some headquarters and administrative 
personnel. (Id.) TBL Group, asserts, however, that labor force 
additions in higher paying sales and field operations in multiple 
cities will offset any personnel contraction across Texas and Florida. 
(Id.) TBL Group notes that, ``while the current goal of the transaction 
is to maximize utilization with fewer vehicles, over time the companies 
will be able to grow by taking advantage of economies of scale, better 
financial terms, and increased buying power, resulting in additions to 
driver and non-driver personnel.'' (Id.) Lastly, TBL Group asserts that 
the transaction will not have a material, adverse effect on 
competition. According to TBL Group, the areas served by the carriers 
are subject to robust competition. (Id.) Specifically, TBL Group states 
that the Jacksonville, Florida market has over 20 interstate 
transportation providers offering charter and tour service. (Id.) TBL 
Group estimates that interstate and intrastate carriers in the 
Jacksonville, Florida market generate over $75 million in annual 
revenues and operate approximately 800 vehicles, including sedans, mini 
buses, and motor coaches. (Id. at 7-8 (pdf pages 9-10).) After the 
transaction, TBL Group states that the combined revenues of Echo East 
Coast Transportation will be less than 10% of $75 million and will 
account for less than five percent of the vehicles in the local market. 
(Id. at 8 (pdf page 10.) Thus, TBL Group asserts that the applicable 
carriers are largely separate and distinct, with a small amount of 
overlap in the larger markets, and do not plan on significantly 
altering their current operations, but merely wish to take advantage of 
efficiencies gained through working under one corporate structure. (Id. 
at 7-8 (pdf pages 8-9).)
    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 expiration of the comment period, this 
notice will take effect automatically and will be the final Board 
action. Persons wishing to oppose the application must follow the rules 
at 49 CFR 1182.5 and 1182.8.
    This action is categorically excluded from environmental review 
under 49 CFR 1105.6(c).
    Board decisions and notices are available at www.stb.gov.
    It is ordered:
    1. The proposed transaction is approved and authorized, subject to 
the filing of opposing comments.
    2. If opposing comments are timely filed, the findings made in this 
notice will be deemed vacated.
    3. This notice will be effective January 3, 2024, unless opposing 
comments are filed by January 2, 2024. If any comments are filed, TBL 
Group may file a reply by January 16, 2024.
    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: November 9, 2023.

    By the Board, Board Members Fuchs, Hedlund, Oberman, Primus, and 
Schultz.
Jeffrey Herzig,
Clearance Clerk.
[FR Doc. 2023-25491 Filed 11-16-23; 8:45 am]
BILLING CODE 4915-01-P
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