the staff of the Ridgewood blog
Paramus NJ, Coach USA, a Paramus-based transportation company, has informed NJ Transit that it plans to prematurely terminate contracts for 20 bus routes in Bergen, Hudson, and Passaic counties. This decision comes as Coach USA began Chapter 11 bankruptcy proceedings last month.
Newel Scoon, one of Coach’s regional vice presidents, notified NJ Transit on Wednesday, July 10, that the company is seeking bankruptcy court approval to reject and terminate its three agreements with NJ Transit effective August 16.
To preserve as many bus services and jobs as possible, Coach USA has reached asset purchase agreements with companies such as The Renco Group, Inc., which agreed to buy Rockland Coaches and Suburban Transit. Suburban operates 14 NJ Transit routes in Middlesex County and one in Union County.
“We are working to transition service by August 16 and, in the meantime, we are continuing to operate service on those routes,” said a Coach spokesperson. “We have been proactive in communicating with New Jersey Transit and other interested parties regarding these lines and others that we continue to serve. We also continue to provide uninterrupted service across more than 50 other commuter routes in New Jersey and New York, including all services to and from points in Manhattan.”
Impacted Routes and Transition Plans
The company has not yet found buyers for the business units holding the contracts for routes in Hudson, Bergen, and Passaic counties. The affected routes are as follows:
Bergen County:
- 751, 752, 753, 755, 756, 762, 772, and 780
Passaic County:
- 702, 705, 707, 709, 722, 744, 746, 748, and 758
Hudson County:
- 2, 84, and 88
Among these, the 752 route between Oakland, Ridgewood, and Hackensack is one of the routes impacted.
NJ Transit has awarded Hoboken-based Academy Express, LLC, a contract to take over the Passaic routes starting September 1. However, the termination of Coach USA’s agreements leaves NJ Transit facing significant logistical challenges, including finding drivers or another private contractor to manage the remaining routes with only five weeks’ notice.
Staffing and Service Challenges
NJ Transit has been struggling with bus operator availability, often cited as the primary reason for bus cancellations. “This presents significant challenges for NJ Transit’s resources, given the ongoing and fierce competition for recruiting commercially licensed drivers from a limited pool of qualified candidates,” said Jim Smith, NJ Transit spokesperson. “We are exploring every available option to limit the impacts on bus service in the state.”
More than 250 Coach USA employees will lose their jobs due to these route terminations.
Financial Struggles and Industry Impact
Coach USA has been significantly affected by ridership losses due to the COVID-19 pandemic and has not fully recovered. Signs of financial distress appeared last year when the company terminated service on three routes serving the Newark area and chose not to bid on a contract to continue operating NJ Transit’s nine Passaic routes earlier this year.
Unlike public transportation agencies and airlines, private bus companies did not receive substantial stimulus funds from state and federal governments following the pandemic. Over $120 billion was made available to public transportation agencies and airlines through three federal aid packages, but 1,300 bus companies had to apply for PPP loans or $2 billion in federal grant money available through the CERTS program.
This year, three other New Jersey bus companies ended commuter bus service due to similar financial challenges. Coach USA’s decision to terminate its contracts with NJ Transit underscores the ongoing financial difficulties facing private transportation companies in the wake of the pandemic.