CVISN Motor Carrier Business Case

2007Final reportPDFTech ReportG604622DTFH61-02-C-00134, Task BA34022Commercial vehicle operationsEconomic analysisMotor carriersTruckingAutomated clearanceIntelligent transportation systemsReturn on investmentInspectionWeigh stationsBenefit cost analysisSafetyMobilityCVISNCredentialsPermitsTruckStation BypassUnited StatesUnited States. Joint Program Office for Intelligent Transportation SystemsMurray, D.Brown, V. J.Balducci, P.Mahadevan, K.McDonald, W.McFadden, M.Battelle Memorial InstituteAmerican Transportation Research InstituteUnited States. Joint Program Office for Intelligent Transportation SystemsNTL-INTELLIGENT TRANSPORTATION SYSTEMS-Commercial Vehicle OperationsNTL-INTELLIGENT TRANSPORTATION SYSTEMS-INTELLIGENT TRANSPORTATION SYSTEMSNTL-INTELLIGENT TRANSPORTATION SYSTEMS-Information ManagementIntelligent Transportation Systems Joint Program Office;Federal Highway AdministrationThe objective was to evaluate economic justifications for motor carriers to participate in CVISN deployment. CVISN (Commercial Vehicle Information Systems and Networks) includes: interstate credentials administration (registration and permitting), electronic screening (transponder-based weigh station bypass), and safety information exchange. A broader goal was to improve the industry\u2019s understanding of the effect that Intelligent Transportation Systems (ITS) can have on the business operations of motor carriers. Thirtyeight telephone interviews were conducted with motor carriers or service bureaus. An economic model was developed based the telephone interviews, and supplemented by a literature review. The economic analysis documented (1) startup and annual recurrent costs for motor carriers; (2) economic benefits; and (3) the returns on investment (ROIs) made by motor carriers who choose to deploy CVISNtechnologies. The model assumed a 10-year life cycle, with appropriate discount rates. The economic analysis indicates significant, near-immediate financial benefits to carriers from taking part in electronic (web-based) credentials administration, and substantial benefits to carriers from enrolling their trucks in electronic screening programs or partnerships. Over the 10-year ROI time horizon, total net benefits per carrier for participating in electronic credentialing are estimated at $3.6 million, resulting in an overall ROI of 2,971:1 and a payback period of less than 1 month. Enrolled motor carriers are also experiencing significant returns on their investment in electronic screening technologies, with ROI ratios for all but one of the companies evaluated ranging from 6.1:1 to 15.9:1