Agency Spotlight: DOT Set to Approve Request To Acquire Kansas Corp.

by Shannon Allen

The Department of Transportation’s (“DOT’s”) Surface Transportation Board (“STB”) issued a Notice Tentatively Approving and Authorizing an application by a Canadian carrier that “provides transportation on both an interstate and intrastate basis across the United States” for acquisition of control over a Kansas corporation that “holds interstate operating authority” and “provides rail crew transportation services in over 20 states within the Unites States.”  The proposed transaction would result in a change of ownership, but would not change the nature or scope of operations or transfer any operating authorities.

Under 49 U.S.C. 14303(b), the Board must approve and authorize a motor carrier of passengers transaction it finds consistent with the public interest, taking into consideration at least:

·         The effect of the transaction on the adequacy of transportation to the public;

·         the total fixed charges that result; and

·         the interest of affected carrier employees.

The applicants state that the proposed transaction 1) will have no significant impact on the adequacy of transportation services available to the public, 2) will improve efficiency and lower the costs of operations, 3) will have no adverse impact on competition, and 4) will not have a significant adverse impact on carrier employees.

The STB, based on the application, finds the acquisition proposal is consistent with the public interest and should be tentatively approved and authorized noting “that the motor carrier passenger sector is competitive and has low barriers to entry.”  In addition, the proposal “will not significantly affect either the quality of the human environment or the conservation of energy resources.”

The STB is tentatively approving and authorizing the transaction, and, if no opposing comments are timely filed, this notice will be the final Board action.  Interested individuals wishing to oppose the application must follow the rules under 49 CFR 1182.5 and 1182.8.  Comments must be filed by May 13, 2013. Applicants may file a reply by May 28, 2013. If no comments are filed by May 13, 2013, this notice shall be effective on May 14, 2013.

Send an original and 10 copies of any comments referring to Docket No. MCF 21052 to: Surface Transportation Board, 395 E Street SW., Washington, DC 20423-0001. In addition, send one copy of comments to Applicants' representative: David H. Coburn, Steptoe & Johnson LLP, 1330 Connecticut Ave. NW., Washington, DC 20036.