September 1, 2004 THE NEWS RESOURCE FOR THE BUS AND MOTORCOACH INDUSTRY Tighter security slows Dismal coach border crossings, Price outlook for diesel isn’t pretty WASHINGTON — Not only is the current price Diesel Fuel Prices hassle-free days gone Stepped up security measures us too much hassle because they of diesel fuel outrageous but the outlook has turned Cents per Gallon equally as disgusting. 200 are running up the time it takes know it’s coming up.” Oil industry analysts, as well as the federal gov- 185 motorcoaches to cross the borders Most operators are handling ernment, are predicting high prices both for the short between the United States and the delays by building extra time and longer terms. 170 both Canada and Mexico, but car- into their itineraries, double check- riers and their passengers appear to ing to make sure their paperwork is “The effects of higher oil prices are . being felt 155 in the diesel market and it appears that relief is not be taking the delays — of up to an in order, and prepping passengers imminent,” says the U.S. Energy Information 140 hour or more — in stride. for the waits that now routinely “Certainly it’s taking longer to take from 20 minutes to more than Administration. 125 Perhaps worse, with no relief from high-priced cross the border, but we all recog- an hour, a significant increase from crude oil, diesel fuel and gasoline in sight, economists 110 nize that it’s because of the 9/11 sit- the five to 10 minutes it used to are now predicting the U.S. and world economies Sep Dec Mar Jun Sep uation and everything else we read take. 2003-04 could slip into recession because of the pervasive 2002-03 about every day,” said Brian Crow, Passengers are told of the delays impact of high energy costs. A worldwide economic executive director of the Ontario and border crossing procedures at slowdown would eventually reduce demand, causing Upward price revisions Motor Coach Association in the start of a trip and then remind- Toronto. “We expect and accept ed of them as the coach approach- prices to fall, but at an enormous cost in terms of jobs The latest Short-Term Energy Outlook published that there has to be better security, es a border station. “We have to do and consumer spending. by the Energy Information Administration contains a and there is a bit better under- that otherwise they could start Meanwhile, motorcoach operators are forced to substantial upward revision for diesel fuel and oil standing now from the carrier and complaining,” said Labrado. cope on a daily basis with diesel fuel prices that are at prices. passenger points of view.” Delays vary widely from border least 30 cents a gallon higher than they were one year The EIA expects the price of diesel to average Antonio Labrado, owner of crossing to border crossing and usu- ago. $1.79 per gallon in both the third and fourth quarters Sunset Coaches in El Paso agreed, ally depend on the time of day and A 30-cents-a-gallon difference means coach oper- of this year (revised up from $1.66 and $1.69, respec- noting that most passengers shrug amount of traffic coaches en- ators are paying $60 more for a 200-gallon retail pur- tively), after averaging $1.72 per gallon in the second off the delays because they’re acute- counter when they reach a station. chase today than they were last year. quarter. ly aware of the security needs at “Sometimes you get there about About the only protection for operators is to build However, that forecast will likely have to be a fuel surcharge into charter contracts. border crossings. “They don’t give CONTINUED ON PAGE 10 þ CONTINUED ON PAGE 12 þ Alabama coach association fights locally, nationally Although the Alabama Motor- to levels that could push the tax on “It was our main reason for coach Association has only been Second in a series of reports new and newer models to more forming,” said Thrasher, who was a around for two years, it’s already in on state bus associations than $5,000, from about $500. leading figure in organizing fellow the thick of some of the hottest issues state tax matters – personal prop- “They gave us no explanation operators. facing the motorcoach industry. erty taxes on the rolling stock of other than to say, ‘That’s how it is Since then, the association has The fledging organization is motor carriers, and sales taxes on sometimes,’” said Thrasher, adding worked closely with several state doing battle with its home state over new coaches – are the early targets that the increase was put into place legislators and earlier this year taxes and with the federal govern- of the organization, which wrapped administratively, not legislatively. managed to get legislation drafted ment over transit agencies gaining up its second annual meeting last “No laws were passed to do it, they that would trim the upper level of more authority to do charter work. month. just did it. It was a Gestapo tactic, the property tax to between $600 “Those are the biggest issues Thrasher said both issues have at least it seemed like that to me.” and $800, which is the average that that our members and our industry the potential of raising serious The increase triggered a series neighboring states charge. face right now and we’re working financial problems for most motor- of meetings among motorcoach Additionally, the measure hard to get them fixed,” says associ- coach companies in the state and operators across the state, which would set the minimum tax for Jim Thrasher ation President Jim Thrasher, pres- possibly even putting some out of led to the birth of the state associa- older coaches at $400, up from the ident of Thrasher Brothers Trail- business. tion and a vow from members to $250 that was charged before the ways in Birmingham. The property tax issue devel- sent out notices that it had raised challenge the state to reduce the higher tax rate went into effect. He said two critically important oped two years ago when the state the rates on the annual assessment tax to a more reasonable amount. CONTINUED ON PAGE 14 þ $ISCOVER WHY WERE THE 0ARTS 0ROS Á n «>ÀÌÃ] ëii`Þ `iÛiÀÞ° *>ÀÌà vÀ *ÀiÛÃ̸ V>V ið &" %- ,.))(+- "À`iÀ i >Ì Ì i *>ÀÌà -ÌÀi° 53 #ANADA WWWMCICOACHCOM BUS & MOTORCOACH NEWS — September 1, 2004 — 3 OPERATOR NEWS Charley turns Florida operators’ world wrong side up PUNTA GORDA, Fla. — “As it turned out, I do not believe groups that were going to Busch Similar sentiment was ex- Hurricane Charley, which dealt a anyone was.” Gardens and Universal Studios/ pressed by Brian Scott of Escot Bus devastating blow last month to Several coach operators report- Islands of Adventure. Lines in Largo, Fla. “While we feel hundreds of thousands of Florida ed heavy loss of business because of “Of course, all groups that had extremely lucky, we at the same residents and businesses, also deliv- the hurricane and Tropical Storm already begun their trips were time feel tremendous loss for the ered a harsh blow to many of that Bonnie that preceded it. returned early and all groups that folks that live south and east of us,” state’s motorcoach operators. “While we did not incur any had trips scheduled were can- he said. “As a company operating its physical damage from Hurricane celled,” said Davis. Two well-known coach indus- main terminal from Sarasota, Fla., Charley, there was a financial loss “Everyone experienced a finan- try veterans, Bruce Matthews, the with one-half of its equipment of thousands of dollars,” said Jeff cial loss due to Charley,” said Davis. retired CEO of Upstate Tours and based on the west coast (of Davis of Davis Tours in Ft. “But our financial losses dim in The Matthews Group in Saratoga Florida), we thought we were pre- Lauderdale. “We had multiple Boy comparison to what the physical Springs, N.Y., and Pete Worthing- pared for the worst,” said Maria Scout trips in the Keys, church victims of this hurricane are endur- ton, a former senior executive at Bankemper, president and general camps in Panama City, senior citi- ing, and I do not intend to make DATTCO in New Britain, Conn., manager of Cruise Connection. zen groups in Ft. Myers, and several light of their situation.” have closeby homes in Punta CONTINUED ON PAGE 13 þ Safety management seminar is planned for fall by UMA ALEXANDRIA, Va. — The experienced or advanced program. United Motorcoach Association is Each session will involve two full planning a major two-day, industry- days of classroom presentations. wide safety seminar for managers The seminar will begin each and owners of motorcoach opera- day at 8 a.m. and conclude at 5 p.m. tions, as well as company safety There will be an hour for lunch and directors. half-hour breaks during the morn- The seminar will be Dec. 1 and ing and afternoon sessions. 2, and take place at the training The programs each day will facility of the National Transporta- focus on a key management topic tion Safety Board in Leesburg, Va. and multiple presenters will be Participation by top NTSB officials involved. The agenda will include is expected. a whole range of topics related to “This seminar will present com- risk management, including hiring, prehensive and usable information training, disciplinary and opera- to persons who manage risks associ- tional standards. Plus, reward, ated with motorcoach fleet opera- incentive and compliance issues.