Licence Application Decision Other PDV New

Transcription

1 Licence Application Decision Other PDV New Application # Applicant Ship 2 Shore Transportation Ltd. Principals BERROW, Leland DONNELLY, Lauren Address 2201 Dick Avenue, Nanaimo BC V9X 1R6 Current None Authorization (s) Application Summary Date Published in Weekly Bulletin Submitters (and representatives) Board Decision New Special Authorization (Reference: Section 26 of the Passenger Transportation Act) New passenger directed vehicle service on Vancouver Island with 2 vehicles Rates (Section 24 of the Passenger Transportation Act) Point to Point Rates. January 28, 2015 AC Taxi Ltd. Swiftsure Taxi Ltd. GILL, Jatinder Singh dba Oceanside Taxi The special authorization is approved. Terms and conditions of licence are approved as set out in the application summary. Rates sought by the applicant are approved as set out in the application summary. Decision Date March 5, 2015 Panel Chair Brenda Brown I. Introduction This is an application for a passenger transportation licence with Special Authorization to operate a new passenger directed transportation service on Vancouver Island. The proposal is for two 6 11 passenger vehicles, with a point to point rate structure. Page 1 Passenger Transportation Board PDV Decision

2 II. Background Ship 2 Shore Transportation Ltd. has 2 principals, Leland Berrow and Lauren Donnelly. The applicant proposes to provide a transportation service dedicated to a niche market of marine pilots and maritime personnel on Vancouver Island. The application material included: PDV vehicle proposal; terms and conditions with a service limitation; proposed point to point rates; PDV rules; disclosures of unlawful activity and bankruptcy and passenger transportation ownership for both company directors; a business plan; financial information and evidence of public need with support letters. The Board requested clarification and additional information from the applicant on matters relevant to the application. III. Relevant Legislation Division 3 of the Passenger Transportation Act (the Act ) applies to this application. The Act requires the Registrar of Passenger Transportation to forward applications for Special Authorization licences to the Passenger Transportation Board (Board). Section 28(1) of the Act says that the Board may approve the application, if the Board considers that: (a) there is a public need for the service the applicant proposed to provide under any special authorization. (b) the applicant is a fit and proper person to provide that service and is capable of providing that service, and (c) the application, if granted, would promote sound economic conditions in the passenger transportation business in British Columbia. I will consider each of these points in making my decision. Page 2 PDV Decision Passenger Transportation Board

3 IV. Rationale and Submissions (a) Applicant s Rationale Ship 2 Shore Transportation Ltd. is targeting a niche market to supply a superior level of transportation service for BC Coast Pilots and associated maritime personnel. This specialized service once existed but that company has closed its door. There is a void left that the BC Coast Pilots and our company would like to see filled. (b) Submissions & Applicant s Response AC Taxi Ltd. Swiftsure Taxi Ltd. GILL, Jatinder Singh dba Oceanside Taxi The above taxi operators made submissions opposing the Ship 2 Shore application. Their common issues are as follows: There are more than enough service providers by using existing taxis. The majority of BC Coast Pilots use different taxi companies for different parts of Vancouver Island. Wheelchair accessible taxis provide a higher standard vehicle. Vancouver Island is too large an area to be covered by only 2 vehicles. The applicant s rates are greater than taxi rates. Most calls are for last minute pick-up and a fleet with 2 vehicles could not respond in time. The applicant responded to these submissions. It is the customers who are dissatisfied with current services. They approached the applicant to fill the void and provide this service. Support letters indicate inadequate and inferior taxi service, particularly for long trips. Ship 2 Shore will fulfill a need for longer trips. The rates are fair market prices for this type of service. The Board gives more weight to submissions that back up general claims with facts or details. I have considered the submissions and the responses in my review of this application. Page 3 PDV Decision Passenger Transportation Board

4 V. Reasons for the Board s Decision (a) Is there a public need for the service that the applicant proposes to provide under special authorization? Applicants should supply information that is factual and objective to demonstrate public need. They should demonstrate that there are people who would use the service. Applicants should explain why they are applying for a specific number of vehicles. The Board wants to be satisfied that there is a reasonable a connection between the number and types of vehicles requested and public need. Ship 2 Shore Transportation Ltd. reports that some BC Coast Pilots have expressed a desire to have a transportation service that is a step above what is currently offered. Today, there are taxi services, shuttle services, limousine services, air travel, public transportation and the private automobile. Nothing meets the preferences of the intended market. Some of these preferences include: leather interiors; comfortable reclining seats with ample leg room; tinted windows; mobile device plug-ins; 4 wheel drive; refreshments and snacks; Port access authority; knowledgeable drivers of remote port locations and drivers availability to wait extended periods of time. The BC Coast Pilots website notes that one of the more challenging logistical aspects of a BC Coast Pilot s career is the complex travel arrangements which apply to most assignments. Arrangements must be made to get to the berth where the ship is located and then must get home again from the port where the ship is destined. When a BC Coast Pilot is dispatched, each must make their own travel arrangements. A pilot can travel 6-8 hours before the ship is reached and the piloting assignment begins. The Pacific Pilotage Authority is responsible for these transportation costs. One of the applicant s principals, Mr. Leland Berrow, reports having worked closely with the BC Coastal Pilots for 17 years through the Pacific Pilotage Authority. He has established networks within the coastal pilot community. If this application is approved, the applicant plans to establish an association with the Pacific Pilotage Authority to develop a direct billing procedure and to obtain Port access passes. Page 4 PDV Decision Passenger Transportation Board

5 A service to transport marine pilots existed from the Crofton area on Vancouver Island. Gentle Ben s Limo Ltd., operated 3 vehicles until the licence expired in December A service currently exists to transport BC Coast Pilots in the Vancouver area. The applicant reports that Vancouver Island is home to 15 separate ports, each with several berths and anchorages. These locations range from the north to the south of Vancouver Island. Some of the locations are very remote and it is difficult to have a taxi commit to a late hour pickup. The BC Coast Pilots have 40 pilots based in Victoria and 6 based in Nanaimo. In 2013, the Pacific Pilotage Authority (CPPA) reports it had 1348 assignments on Vancouver Island. Each assignment usually requires 2 jobs: one to bring the ship in and the other to take the ship out. According to the PPA, there are significant planned changes that will increase ship traffic in the area. Due to the potential increases in shipping volume, the BC Coast Pilots Association is anticipating hiring more pilots to keep up with the increased demand. The applicant included 6 letters of support from BC Coast Pilots to re-establish this niche service. Such comments included.. This unique service will provide the service we need and will allow access to remote docks at all hours; entrance to secure Port facilities; a well-rested driver, knowledgeable to our needs, who will wait at night and not leave and a newer 4X4 vehicle for use in winter months. Board Analysis and Findings I find that the applicant has supplied relevant and reliable evidence to show there is a public need for this niche transportation service. This type of service existed previously. Reports show that shipping volume is increasing along with the need for more BC Coast Pilots. Letters of support from BC Coast Pilots indicate that there are customers who will use this service. Through the close association of the applicant s president with the BC Coast Pilots and with marine industry connections, it can market personally and directly to individual pilots and the industry as a whole. The applicant has satisfied the requirement of demonstrating a public need. Page 5 PDV Decision Passenger Transportation Board

6 (b) 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 business plan included an executive summary; organizational structure; service plan; vehicle requirements and maintenance. An operations manual is being prepared. Ship 2 Shore Transportation Ltd. was incorporated in November, Mr. Leland Berrow, President, CEO and co-director of Ship 2 Shore Transportation Ltd., has had extensive various job related employment in the marine industry over the past 25 years. His resumé ranges from work with tug and barge companies to a marine consultant. He is well acquainted with the marine transportation industry and reports longstanding and numerous personal relationships with those in various aspects of the industry. Lauren Donnelly is Director of Operations and Secretary of the company. She has been working in the logistics and transportation industry for over 11 years and has experience in accounting, dispatch and customer relations. The vehicles intended to be purchased are luxury SUVs. The applicant anticipates, in most cases, it will be carrying 1 passenger. Financial information included start-up costs and cash flow projections for 36 months. The disclosure forms were completed as required. I find that the applicant has the related skills and resources to operate the proposed specialized service. The applicant is considered fit, proper and capable of providing the intended service. Page 6 PDV Decision Passenger Transportation Board

7 (c) Would the application, if granted, promote sound economic conditions in the passenger transportation business in British Columbia? The Board looks at the economic conditions issue from a wide-ranging view. The economic conditions of the transportation business in British Columbia are considered ahead of the economic and financial interests of an individual applicant or operator. The Board supports healthy competition. The Board discourages competition that could unduly harm existing service providers. This application is for a discretionary transportation service to a niche marine industry market. It provides an additional transportation option for the customer. It is a specialized service that once existed and the applicant now seeks to re-establish. It is distinguishable from a taxis service in terms of vehicle type and capacity. The price differential also separates it from taxi rates. The applicant plans on marketing for long duration trips. There were no limousine operators as submitters to the application. I find this application contributes to sound economic conditions by supplying a discretionary transportation option to a niche market. It is a value added service and contributes to the transportation industry on Vancouver Island. VI. Rates The point to point rates, per trip, are approved as set out in the application summary. VII. Conclusion For the reasons above, this application is approved in whole. I establish the activation requirements and the terms and conditions of licence that are attached to this decision as Appendix I. I establish the rates that are attached to this decision as Appendix II. These form an integral part of the decision. Page 7 PDV Decision Passenger Transportation Board

8 Ship 2 Shore Transportation Ltd. Appendix I Licence Required to Operate Vehicles Approval of application may expire Note to staff: Modify if only 1 vehicle approved. Notice to Registrar Note to staff: Modify if only 1 vehicle approved. The Registrar of Passenger Transportation must issue the applicant a licence before the applicant can operate any vehicles approved in this decision. 1. The applicant must activate at least 50% of the vehicles within 6 months of the date of this decision. 2. If the applicant does not meet the requirements set out in 1 above, this Special Authorization expires. 3. The Passenger Transportation Board may vary the requirements set out in 1 above, if circumstances warrant it. 4. If an applicant needs more time to activate its vehicles, then the applicant must make a request to the Board before the end of the 6 month activation period. (Note: activate means that the applicant has submitted the documents required to obtain a Special Authorization Vehicle Identifier to the Registrar of Passenger Transportation.) The Registrar must not, without direction from the Board, issue the applicant a licence or any Special Authorization Vehicle Identifiers if the applicant has not activated at least 50% of the vehicles within 6 months of the date of this decision. (Note: activated means that the applicant has submitted to the Registrar of Passenger Transportation the documents required to obtain a Special Authorization Vehicle Identifier.) Special Authorization Passenger Directed Vehicle (PDV) Maximum Fleet Size: Vehicle Capacity (LV): Service 1: 2 vehicles Terms & Conditions A driver and not less than 6 and not more than 11 passengers Service Limitation: Service may only be provided to licensed marine pilots employed or engaged by the British Columbia Coast Pilots Ltd., ship crew members or shipping agents. Originating Area: Destination Area: Transportation of passengers may only originate from any point on Vancouver Island Transportation of passengers may terminate at any point on Vancouver Island 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 8 PDV Decision Passenger Transportation Board

9 Ship 2 Shore Transportation Ltd. Appendix II (Rates) Point to Point Rates* Rate $ Nanaimo to: (or reverse) Victoria Port Alberni Crofton Chemainus Port Hardy Tahsis Gold River Port McNeill Campbell River Coal Harbour Sidney Cowichan Bay Ladysmith Harmac & Duke Point Port Alice Bamfield Victoria to: (or reverse) Port Alberni Crofton Chemainus Port Hardy Tahsis Gold River Port McNeill Campbell River Coal Harbour Cowichan Bay Ladysmith Harmac & Duke Point Port Alice Bamfield Additional Hourly Rate (1/2 hour increments) Page 9 PDV Decision Passenger Transportation Board