Application Decision Application: 2461-07 Applicant: Address: Page 1 SKEENA TAXI LTD. 1047 Saskatoon Avenue, Prince Rupert, BC V8J 4J1 Principals: DIDYCHUK, Joseph GILL, Lakhvir Special Authorization: Summary: GILL, Mahinder Singh LY, Chuong BASANTI, Harry LANGTHORNE, Bill RANDHAWA, Gurvinder The applicant has special authorization to operate passenger directed vehicles. This can be viewed in the PT Board Bulletin of October 20, 2004 at www.ptboard.bc.ca/ptb/bulletins.htm. Amendment of Licence (PDV) (Section 31 of the Passenger Transportation Act) Proposed addition of Service 3 providing service under contract with CN Rail and Albert Co-op. Publication: The application was published in the PT Board Bulletin on October 24, 2007 and republished December 12, 2007 (to expand the proposed destination area and to change the proposal for return trips to same vehicle return trips. ) Submissions: Board Considerations: Application Matters: None The Board may approve an application forwarded to it by the Registrar of Passenger Transportation if the Board considers, as set out in section 28(1) of the Passenger Transportation Act, 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. The Board may approve a special authorization if all three provisions are answered in the affirmative. The Board may refuse a licence if any one provision is answered in the negative. The Board views taxicabs as complementary to the public transportation system used by many people in their daily life. For these types of applications, the Board is looking for supporting documentation from potential users as well as business plans and financial statements when considering public need, applicant fitness and economic conditions. The length and complexity of the business plan and financial information as
Board Decisions: Background: well as the volume of letters or statements from potential users should reflect the following factors: the type, size, and complexity of the proposed transportation business; and the degree of comparable competition in the operating area. Regardless of how much supporting material is provided, it is up to the applicant to guide the Board as to what conclusion it should reach based on the supporting data and information that it submits with its application. The Application Handbook, a companion to the application package and forms, contains information on application requirements and Board considerations. The special authorization sought by the applicant is approved as set out in this decision. The terms and conditions sought by the applicant are approved. The applicant, Skeena Taxi Ltd., is authorized under PT Licence 70116 to operate a maximum fleet size of 47 vehicles originating in the Prince Rupert area that can accommodate a driver and not less than 2 and not more than 7 passengers. The applicant does not have a contract clause authority to provide crew transportation services to CN Rail. It currently provides those services under its existing authorization and charges metered rates. The applicant is proposing to add a third Service to the terms and conditions of the licence that would apply specifically to crew transportation services provided under contract. Under the proposed service, transportation may be provided only to persons employed or engaged by CN Rail and only as long as a current written contract exists between Skeena Taxi Ltd. and CN Rail or its broker or agent. Reasons: I. Is there a public need for the service that the applicant proposes to provide under special authorization? Applicants wanting to establish a new taxicab business (or to extend existing services to a new area) should provide to the Board evidence of unmet need in the area. The applicant currently provides service to rail crews based on metered rates, but according to the information provided in the business plan, CN Rail and Alberta Co-op would like a contract with Skeena Taxi Ltd. that includes negotiated deadhead rates. In the business plan, the applicant states that the Port of Prince Rupert had a grand opening of the new container port and the first container ship was scheduled to arrive at the end of October. CN Rail is the only supplier of rail services between Prince Rupert and Prince George and the applicant has been advised by CN Rail to expect a dramatic increase in the volume of rail crew transport. The applicant submitted a letter of intent dated September 27, 2007 from Alberta Co-op Taxi Ltd., the authorized representative for CN Rail for crew transportation across Canada. The letter states that Skeena Taxi has been the carrier of note in the Prince Rupert area for many years and it is our intent to continue to utilize them in Page 2 Application Decision Passenger Transportation Board
the transportation of CN Rail Crewmen, pending the negotiation of a satisfactory contract between them and us. I find that the applicant has demonstrated need for this service. However, the proposed service may only start following the signing of a contract between Skeena Taxi Ltd. and Alberta Co-op as dispatch agent for CN Rail. II. Is the applicant a fit and proper person to provide that service and is the applicant capable of providing that service? The Board considers applicant fitness from two perspectives, or in two steps: (a) is the applicant a fit and proper person to provide the proposed service; and (b) is the applicant capable of providing that service? The applicant provided a business plan, PDV Service Proposal, financial statements, ACCPAC records of account, samples of automated payments from Alberta Co-op and a letter of intent from Alberta Co-op. Skeena Taxi has been providing passenger transportation service originating in Prince Rupert since 1966. I find that the history of the company and the supporting documentation demonstrate that the applicant is a fit and proper person to provide the proposed service and is capable of providing the service. III. Would the application, if granted, promote sound economic conditions in the passenger transportation business in British Columbia? The Board approaches the economic conditions issue from a broad perspective. 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 within passenger transportation markets. As well, the Board discourages destructive forms of competition that could unduly harm existing service providers. This service authorization is limited to persons employed or engaged by CN Rail and only as long as a current written contract exists between Skeena Taxi Ltd. and CN Rail or its broker or agent. It is important that this sector of the public be served. Skeena Taxi Ltd. has been providing crew transportation services to CN Rail and Alberta Co-op in the Prince Rupert area for several years. Approving this application will maintain the status quo with respect to the supply of passenger transportation services for CN Rail crews. It is my finding that approval of this application will promote sound economic conditions in the passenger transportation business. Activation: A Passenger Transportation Licence must be issued by the Registrar of Passenger Transportation under section 29 or renewed under section 34 of the Passenger Transportation Act before the special authorization approved in this decision may be exercised. Page 3 Application Decision Passenger Transportation Board
Special Authorization: Terms & Conditions: Vehicles: Maximum Fleet Size: Vehicle Capacity: Passenger Directed Vehicle (PDV) 47 vehicles A driver and not less than 2 and not more than 7 passengers. Service 1: The following terms and conditions apply to Service 1: Transportation of passengers may only originate from any point in the City of Prince Rupert and points within 40 road kilometres of the City of Prince Rupert. Transportation of passengers may terminate at any point in British Columbia. (iii) Vehicles may pick up passengers who hail or flag the motor vehicle from the street. Service 2: The following terms and conditions apply to Service 2: Reverse Trips: Service Limitation: Transportation of passengers may only originate from any point in the City of Prince Rupert. Transportation of passengers must terminate at the Prince Rupert Airport (YPR). Transportation of passengers may only originate in the destination area if the transportation terminates in the originating area. All passengers must be destined to or originate from Prince Rupert Airport. (iii) Vehicles may pick up passengers who hail or flag the motor vehicle from the street. Service 3: The following terms and conditions apply to Service 3. Same Vehicle Return Trips: Service Limitation: Transportation of passengers may only originate from Prince Rupert and points along Highway 16 within 80 road kilometres of the boundary of the City of Prince Rupert. Transportation of passengers must terminate at points along the Highway 16 corridor from Prince Rupert to Telkwa, including off-highway locations such as Cedarvale and Kitwanga, and including the portion of Highway 37 that is required to travel to Kitwanga and Cedarvale. After providing transportation to a group of passengers from the originating area to the destination area, transportation may only be provided to a different group of passengers from the terminating point of the first trip to Prince Rupert (or to any point within 40 road kilometres of Prince Rupert) if the same vehicle is used for both trips and if that same vehicle did not return to Prince Rupert (or any point within 40 road kilometers of Prince Rupert) before the start of the second trip. Service may only be provided to persons employed or engaged by CN Rail and only as Page 4 Application Decision Passenger Transportation Board
long as a current written contract exists between the licence holder and CN Rail or its broker or its agent. Transfer of a licence: Rates: 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. Passenger Directed Vehicle (PDV) Further to the Board Industry Advisory of September 5, 2007, the Board does not require approval of rates charged for crew transport services when: (a) there is a valid, current written contract between a licensee and a company or its agent and (b) the licensee s conditions of licence have a service limitation specifying that service may only be provided if there is a current, valid contract between the licensee and, or on behalf of, a specified organization. Board Panel Chair: Donna Hains Determination Date: January 3, 2008 Page 5 Application Decision Passenger Transportation Board