1
The Private
Motorcoach and Bus Industry
A Presentation
by: Clyde Hart, Senior Vice President
American
Bus Association
2
American
Bus Association
- Trade association
for the private intercity bus and charter and tour industry.
- Approx. 1000
private bus operators.
- 40,000 motorcoaches
(i.e., at least 35�� vehicle with an elevated passenger deck located
over a baggage compartment*).
- Provide: intercity,
charter and tour, commuter, airport shuttle services nationwide.
- The motorcoach
industry provides 762 million passenger trips annually, which is more
service in two weeks than Amtrak provides in the same year.
* Section 3038 Public
Law 105-178, 49 USC 5310 note.
3
Private
Bus industry works without significant subsidy
- Private bus
operators pay a reduced federal fuel tax (7.3 cents a gallon of a 24.4
cents a gallon tax).
- Publicly funded
transit agencies and Amtrak pay no federal fuel tax.
- Industry competes
for $10 million annually in security grants.
- Industry competes
for $7 million annually to put wheelchair lifts on motorcoaches.
4
Summary
Statistics for the Motorcoach Industry in the U.S. and Canada, 2007-2008
- Key Statistics
2007
2008
%Change
- Passenger
Trips
751,000,000
762,000,000
1.5
- Passenger
Miles
65,496,000,000 65,088,000,000
-0.6
- Service Miles
1,798,000,000 1,827,000,000
1.6
- Number of
MCs
33,536
35,217
5.0
- Source: Nathan
Associates, Inc.
5
Economic
Impact of Private Motorcoach Industry
- United States
- The motorcoach
industry supports 1,056,800 jobs in the country and creates $112,667,533,000
in economic activity
- Florida
- The motorcoach
industry supports 23,400 in the state and creates $2,602,094,900 in
economic activity
- Florida��s
8th Congressional District
- The motorcoach
industry supports 1,230 in FL-8 and creates $136,995,690 in economic
activity
6
Environmental
Benefits
- According
to The Union Of Concerned Scientists, motorcoaches produce less global
warming pollution than planes, trains or automobiles.
- Coaches also
fight congestion, as each coach has the capacity to take up to 55 cars
off of the road at one time.
7
Passenger
Miles per Gallon of Fuel by Mode of Transportation
8
Intercity
Service
- Numerous carriers
provide intercity bus service nationwide.
- Legacy carriers
(e.g. Greyhound; Peter Pan; Jefferson Lines; Rimrock Stages; Northwest
Stages).
- New Model
carriers (e.g. Megabus, Bolt Bus, Vamoose Bus, Jefferson Rocket Express,
Fung Wah).
- Megabus alone
moves over 4 million passengers a year serving 40 major cities.
- BoltBus has
served over 3 million passengers, expected to reach 4 million by end
of year
- The Southwest
Airlines model for the 2010s?
9
Today��s
Intercity Bus Service
10
New Intercity
Service Trends
- Internet
based reservations system.
- Express service
between city pairs.
- Pick up and
discharge in major urban centers, connecting to other modes of transportation.
- Electronic
amenities: Wi-Fi, satellite radio, movies, ��plug-ins��.
- Luxury seating,
food service, extra leg room, ��classes of service��.
11
The Megabus
Network
12
Problems
- Cities view
intercity bus service as a ��cash cow��.
- Proposals
to tax service for picking up on city streets or forcing buses into
terminals.
- Bus terminals
typically not close to other modes of transportation.
- Overzealous
environmental regulations
- Increasing
federal mandates
- Lack of federal
parity
13
Charter
Bus Regulation
- 1970s FTA
rule prevents federally funded transit agencies from performing charter
work when there is a willing and able private operator available.
- In D.C. alone
WMATA admitted to doing $2 million in charter work in 2007.
- In 2008 Congress
mandated an FTA negotiated rulemaking procedure to reform the charter
bus rule.
- The rulemaking
involved 21 representatives of private and public transportation stakeholders
over 8 months.
14
The Resultant
Rulemaking
- Centered
the complaint process in FTA��s Chief Counsel��s Office.
- Rationalized
definition of ��Charter��.
- Provided
for penalties for repeated violations of the rule.
Established
an Appeals Process.
- Exemption
process for unique events.
- Web site
for private carriers to register to provide service.
- Web site
for non profit social service entities to obtain service at reduced
rates.
15
Public
Law 111-117
- Section 172
of the FY 2010 Consolidated Appropriations Act: ��None of the funds
provided or limited under this act may be used to enforce regulations
related to charter bus service under part 604 of title 49 Code of Federal
Regulations, for any transit agency who during FY 2008 was both initially
granted a 60-day period to come into compliance with part 604 and then
was subsequently granted an exception from said part��.
- The provision
(known as the ��Murray Amendment��) permits King County Metro (and
no other agency) to provide their federally funded transit buses for
service to Seattle Mariners�� and Seattle Seahawks�� games and other
special events outside of their regular public transportation routes
at the expense of private, tax paying motorcoach companies and against
whom the FTA may not act.
16
ABA v.
Rogoff
- ABA and UMA
sued FTA Administrator Rogoff alleging that Section 172 violated the
First (right to petition Congress for redress of grievances) and
Fifth (rights to procedural due process and to equal protection) Amendments
of the Constitution and the Separation of Powers.
- On June 9,
2010 Judge Ellen Huvelle (U.S. District Court) found Section 172 to
be unconstitutional in that it targeted a single group (King County
charter bus operators), while other similarly situated entities are
free to exercise their full right to challenge local public competitors
under the Charter Rule.
- The Department
of Justice appealed that ruling and oral argument on the appeal was
held before the U.S. Court of Appeals for the District of Columbia Circuit
on September 23, 2010.
17
FY 2011
Transportation
Appropriations Bill
- Contains
the same exemption as the FY 2010 Appropriations law
- Language
sponsored by Transportation Appropriations Committee Chairman Patty
Murray
