Application Decision Urgent Public Need Request

Transcription

1 Application Decision Urgent Public Need Request Application # UPN Applicant Hallcon Crew Transport Inc. Trade Name (s) Principals Address Current Authorization (s) Application Summary Hallcon LEVISON, A. Andrew RAMSAY, Kevin A JAMES, William H. PLUT, Anton G TYRA, Vincent J Yonge Street, Suite 1010, Toronto ON M2M 4J1 Special and General Authorization: Passenger Directed Vehicles PT Licence #71510 Amendment of Licence Add Service 5 Board Decision Decision Date February 8, 2013 Additional Vehicles Add 5 vehicles under Service 5. New fleet size would be 23. A. The panel is satisfied that there is an urgent public need for the service proposed in this application. B. The licence amendment is approved. C. 4 additional vehicles are approved. Panel Chair Don Zurowski Legislation & Policy Section 26(3) of the Passenger Transportation Act reads: the board need not publish notice of the application or accept or consider any written submissions provided in respect of the application if the board is satisfied that there is an urgent public need for the service proposed in the application. (Emphasis added) If the Board finds that there is an urgent public need for the service, it will review the application materials and make a decision on the application. If the Board finds that there is no urgent public need for the service, the Board will not make a decision on the Page 1

2 application. It will publish the application at that time. The Board will accept and consider submissions received. I. Background Hallcon Crew Transport Inc. (Hallcon) provides crew transportation services to Canadian Pacific Railway (CPR) and the Canadian National Railway (CNR). It holds Passenger Transportation (PT) license 71510, with General and Special Authorizations. Under its Special Authorization (SA), Hallcon may use vehicles with a carrying capacity of a driver and not more than 11 passengers. Hallcon is authorized to provide 4 transportation services in defined regions in the province of BC. All services are for crew transport. Service 1 allows the transportation of CPR crews in the southeastern corner of BC and authorizes 5 vehicles. Services 2 and 3 allow the transportation of CN crews across the northern interior and interior of B.C and authorize 5 vehicles in total for both service areas. Service 4 allows the transportation both CN and CPR crews in southwest, west and south interior BC. Under service 4 a maximum of 8 SA vehicles may be operated or a combination of SA and General Authorization (GA) vehicles. (GA vehicles have a carrying capacity of more than 12 passengers and a driver). Hallcon proposes the following service area: Transportation of passengers may only originate from points along the CPR rail corridors as follows: From Field to Kamloops via Revelstoke (parallel to Highway 1) From Golden to Cranbrook (parallel to the Kootenay and Kimberley Highways) Transportation of passengers may only terminate at points along the CPR and CNR rail corridors as follows: From Field to North Bend via Kamloops and Revelstoke (parallel to Highway 1) From Golden to Cranbrook via Kimberly (parallel to the Kootenay and Kimberley Highways) For some of this area, Field to Revelstoke and Golden to Cranbrook, Hallcon has no SA. It must use either GA vehicles or sub-contract to operators with a SA licence. Page 2 Application Decision Passenger Transportation Board

3 Reasons for the Board s Decision A. Urgent Public Need Urgent is relevant to the public s need, not the applicant s need. It is an exception to the public process for considering applications. Applicants must demonstrate to the Board that there is an urgent public need for the application to be processed without notice or consideration of submissions. In considering urgent public need, the Board may consider such things as: Whether other licensees are available to provide the service to the public Whether there is a real public demand for the service How the urgency came to exist Whether any of the urgency was due to the applicant s delay Hallcon states that it urgently requires five 4x4 vehicles to operate Service 5 from now through Spring. The applicant, in support of its urgent public need request, relies primarily on a January 25, 2013 letter to them from CPR. This letter states the following: In recent weeks, CPR has experienced significant train delays as a result of its inability to move crews due to heavy snow and poor access to tracks in certain parts of BC. Our service standards, both internally and with our customers, do not allow for these types of delays. The most significant of such delays are to our crews based from Field through to North Bend. Our current provider, Hallcon Crew Transport Inc. (Hallcon) and the other carriers contracted by Hallcon already utilize snow tires and chains on a number of their vehicles, however the vehicle type they use cannot function in deep snow, or icy road conditions safely. Our employees could be left stranded in the BC interior, in the cold and snow, with no way to access them. As result we are experiencing train delays, and placing our employees in possible risk. We have asked that Hallcon immediately replace its existing vehicles in these areas with 4x4 vehicles that will be better equipped to handle wither conditions. We understand that a special authorization will be required for Hallcon to utilize Ford Expedition s or similar vehicles as the seating capacity is smaller than that allowed by Hallcon s general authorization. When considering urgency, I am influenced by changing service standards and expectations, both internal at CPR and external to CPR, as they relate to the provision of service. I find the safety benefits of matching the appropriate vehicles with service requirement of the public to be time sensitive. Therefore, I will consider this application on the basis of urgent public need. Page 3 Application Decision Passenger Transportation Board

4 B. Board Considerations (a) Is the applicant a fit and proper person to provide that service and is the applicant capable of providing that service? The Board looks at fitness in two parts: (i) is the applicant a fit and proper person to provide the proposed service; and (ii) is the applicant capable of providing that service? The Board reviews the conduct of an applicant and the structure of its operations. Does the applicant seem to understand passenger transportation laws and policies? Is the business set up to follow these laws? Is there something in the applicant s background that shows it disregards the law? This application package included the following: PDV Proposed Terms and Conditions Proposed PDV Rules Business Plan Financial Information Disclosure of Passenger Transportation Ownership and Disclosure of Unlawful Activity & Bankruptcy of all directors and officers The file received from the Passenger Transportation Branch indicates that, in 2012, the Branch received two complaints regarding Hallcon operating outside its authorized service areas, one of which resulted in an administrative fine. Although an administrative penalty is concerning, I do not find this a sufficient reason to question Hallcon s fitness. The Board has found the applicant to be fit proper and capable in previous decisions, and no new information has come to my attention that causes concerns about the applicant s continued fitness. The addition of the proposed service will not add measurably to the complexity of the applicant s business. The Board feels that the applicant is fully aware of what is involved in providing the service and has demonstrated that it is capable of proving that service. The Board finds the applicant fit and proper and capable of providing the proposed service. (b) Is there a public need for the service that the applicant proposes to provide under special authorization? Hallcon contends that the Board has determined, in previous decisions, that a business to business contract, such as the contract between CPR and Hallcon, satisfied the test of public need and that CPR and its crews are the public. Page 4 Application Decision Passenger Transportation Board

5 I find that, as it pertains to this application, CPR crews are the public and this business to business contract is an indication of public need. I give weight to CPR s letter dated January 25, 2013 as an indicator of public need. CPR s letter states that it has a set of service standards that are not currently being met by Hallcon and its subcontractors. CPR requires Hallcon to provide 4x4 vehicles to safely meet its crew transport requirements in a timely way. Hallcon is proposing to provide a new Service 5. This new service area overlaps in some places with its current operating authority in Service 4. I accept the evidence and argument put forward by Hallcon that there is an immediate need for 4x4 vehicles in proposed Service 5 area. However, I find that some of this need could be met within Hallcon s current licensing authority. Hallcon could change some of its existing fleet that it uses to provide crew transportation in Service 4 to 4x4 vehicles. I find there an immediate public need for Hallcon to operate four 4x4 SA vehicles under the proposed Service 5. These vehicles are required from now through Spring At any time the applicant may apply for permanent authorization, at which time its application will be published in PTB s Weekly Bulletin. (c) Would the application, if granted, promote sound economic conditions in the passenger transportation business in British Columbia? There are many markets for transportation services. A healthy, competitive industry provides the public with service options while enabling operators to run a successful business. Based on the evidence before me, including a letter from CPR date January 25, 2013, I am convinced the addition of 4 new SA vehicles will not unduly affect other PT license holders in the originating and destination area of service 5. Although there will be some impact on existing Hallcon subcontractors, it is a result of not having the appropriate vehicles to meet CPR requirements. As well, any impacts should be minimized given the time-limited approval of this application. II. Conclusion I am approving this application in part and for a limited duration. I establish the activation requirements and the terms and conditions of licence that are attached to this decision as Appendix I. These form an integral part of the decision. Page 5 Application Decision Passenger Transportation Board

6 Hallcon Crew Transport Inc. Appendix I Licence Required to Operate Vehicles Notice to Registrar Special Authorization Maximum Fleet Size: The Registrar of Passenger Transportation must issue the applicant a licence before the applicant can operate any vehicles approved in this decision. After May 15, 2013, the licensee s authority under Service 5 expires. This includes its authority to operate 4 vehicles under this service. After May 15, 2013, the licensee s maximum fleet size reverts to 18 vehicles as outlined in a-d below. Passenger Directed Vehicle (PDV) Terms & Conditions of Licence Vehicles A maximum of 22 passenger directed vehicles (PDVs) may be operated as set out below: a. Up to 5 PDVs along the rail corridor outlined in service 1. b. Up to 5 PDVs along the rail corridor outlined in services 2 and 3. c. Up to 8 PDVs may be operated based on the sliding scale below along the rail corridor outlined in service 4 and the rail corridor from Kamloops to Avola only 1 in Service 3. d. The number of PDVs that may be operated under service 4, as of September 2 22, 2012, is based on the sliding scale below e. Up to 4 PDVs along the rail corridor outlined in service 5 Total General Passenger Vehicles based in Service 4 originating area 3 Maximum PDVs that may operated under Service or more 0 Page 6 Application Decision Passenger Transportation Board

7 1 This means that up to 13 passenger directed vehicles may operate in service 3 from Kamloops to Avola. 2 For the purposes of calculating the sliding scale as outlined in paragraph 3 below, from the date of this decision until September 22, 2012, Hallcon Crew Transport Inc. may provide to the Registrar an "estimate" of the number GAs that it would have based in Service 4, had this decision been in effect. 3 For the purposes of determining whether a general passenger vehicle is based in the Service 4 originating area, a vehicle that originates more than 15% of its trips per licence year within the Service 4 originating area will be deemed to be based in that area. The number of general passenger vehicles will be the average of actual vehicles used in the licence year leading up to the date of renewal and the number of vehicles that Hallcon Crew Transport Ltd. anticipates using in the licence year ahead, rounded to the nearest number of general passenger vehicles. 4 If, throughout the year, Hallcon Crew Transport Inc. wishes to increase the number of general passenger vehicles based in Service 4 Hallcon must surrender the appropriate number of passenger directed identifiers that have been issued to it by the Registrar of Passenger Transportation. Licence Renewal: At licence renewal, the Registrar may, if other requirements are met, 1. issue up to 10 identifiers for use in Service 1, 2 and 3 as outlined in a. through c. under Maximum Fleet Size above. 2. issue the appropriate number of identifiers for Service 4 as outlined in d. under Maximum Fleet Size above. At licence renewal, Hallcon Crew Transport Ltd. must provide sufficient data to the Registrar to enable the Registrar to make the calculations necessary to determine the appropriate number of passenger directed vehicle identifiers to be issued to Hallcon Crew Transport Ltd. under Service 4. The Registrar may refuse to accept data provided by Hallcon Crew Transport Inc. when there is not enough detail for the Registrar to assess the number of passenger directed vehicles that may be operated under service 4. Despite the Registrar s acceptance of information at renewal time, the Registrar may require additional records or details from Hallcon Crew Transportation Inc. from time to time. Page 7 Application Decision Passenger Transportation Board

8 Vehicle Capacity: Vehicles can accommodate a driver and not more than 11 passengers. Service 1: The following terms and conditions apply to Service 1 Originating Area: Transportation of passengers may only originate from any point on the Canadian Pacific Railway (CP Rail) corridors east to and including the British Columbia/Alberta border, west to and including Elko, and north by the Elk Valley. Destination Area: Transportation of passengers may only terminate at any point on the CP Rail corridors west to and including the City of Cranbrook, east to and including the British Columbia/Alberta border, and beyond when engaged in an extra-provincial undertaking. Reverse Trips: Transportation of passengers may originate from the destination area when the transportation terminates within the originating area. Service Limitations: Service may only be provided to persons employed or engaged by CP Rail and only when the licensee has a written transportation service agreement with CP Rail or its broker or agent to provide ongoing crew transportation. Service 2: These Terms and Conditions apply to Service 2 only Originating Area: Transportation of passengers may only originate from points along the Canadian National (CN Rail) rail corridor between Smithers and the British Columbia / Alberta border via McBride and Prince George, and beyond the border when engaged in an extra-provincial undertaking. Destination Area: Transportation of passengers may only terminate at points in the originating area. Service Limitation: Service may only be provided to persons employed or engaged by CN Rail and VIA Rail and only when the licensee has a written transportation service agreement with CN Rail or VIA Rail or its broker or agent to provide ongoing crew transportation. Service 3: The following terms and conditions apply to Service 3. Originating Area: Transportation of passengers may only originate from points along the Canadian National (CN Rail) rail corridor between Kamloops and the British Columbia / Alberta border (near Highway 16) via Clearwater, and beyond the border when engaged in an extra-provincial undertaking. Destination Area: Transportation of passengers may only terminate at points in the originating area. Service Limitation: Service may only be provided to persons employed or engaged by CN Rail and VIA Rail and only when the licensee has a written transportation service agreement with CN Rail or VIA Rail or its broker or agent to provide ongoing crew transportation. Page 8 Application Decision Passenger Transportation Board

9 Service 4: The following terms and conditions apply to Service 4. Originating Area: Transportation of passengers may only originate from points along the following rail corridors: (a) The Canadian National (CN Rail) rail corridor between Chilliwack and Kamloops via North Bend, and Lillooet. (b) The Canadian Pacific (CP Rail) rail corridor between Harrison Mills and Malakwa via North Bend, Kamloops and Salmon Arm. Destination Area: Transportation of passengers may only terminate at points along the following rail corridors or points: (a) The CN Rail corridor between Vancouver and Kamloops via North Bend, and Lillooet. (b) The CP Rail corridor between Vancouver and Revelstoke via North Bend, Kamloops and Salmon Arm. Reverse Trips: Transportation of passengers may originate from the destination area when the transportation terminates within the originating area. Service Limitation: Service may only be provided to persons employed or engaged by CP Rail and CN Rail and only when the licensee has a written transportation service agreement with CN Rail or CP Rail or their broker or agent to provide ongoing crew transportation. Service 5: The following terms and conditions apply to Service 5. Vehicle Limitation: Only 4x4 vehicles may be operated Originating Area: Transportation of passengers may only originate from points along the CPR rail corridors as follows: From Field to Kamloops via Revelstoke (parallel to Highway 1) From Golden to Cranbrook (parallel to the Kootenay and Kimberley Highways) Destination Area: Transportation of passengers may only terminate at points along the CPR and CNR rail corridors as follows: From Field to North Bend via Kamloops and Revelstoke (parallel to Highway 1) From Golden to Cranbrook via Kimberly (parallel to the Kootenay and Kimberley Highways) Reverse Trips: Transportation of passengers may originate from the destination area when the transportation terminates within the originating area. Service Limitation: Service may only be provided to persons employed or engaged by CP Rail and CN Rail and only when the licensee has a written transportation service agreement with CN Rail or CP Rail or their broker or agent to provide ongoing crew transportation. Page 9 Application Decision Passenger Transportation Board

10 Service 5 After May 15, 2013, the licensee s authority under Service 5 expires. This includes its authority to operate 4 vehicles under this service. Taxi Cameras: Taxi camera equipment may only be installed and operated in vehicles when the licensee is in compliance with applicable taxi camera rules, standards and orders of the Passenger Transportation Board. Transfer of a licence: This special authorization may not be assigned or transferred except with the approval of the Board pursuant to section 30 of the Passenger Transportation Act. Page 10 Application Decision Passenger Transportation Board