4. Prior Studies and Anecdotal Evidence
This section summarizes the limited information that is available on motor carrier costs and benefits from CVISN technology deployment. Further details on the findings of the review of pertinent prior literature summarized below are presented in Appendix C.
While substantial information exists on the impacts of CVISN deployment on states, few studies have documented the impacts of CVISN deployment on motor carriers. Review of journal articles, case studies, press releases, and web sites yielded anecdotal evidence on the impacts of CVISN technologies on motor carriers. Motor carriers benefit from bypass time savings, fuel economy improvement, increased safety through reduction in backups, increase in miles traveled, reduction in administrative costs, reduced operation and maintenance costs by eliminating frequent starts and stops, increased regulatory compliance, and increased levels of efficiency and effectiveness. Only studies published after 2001 providing quantitative information on the costs and benefits of CVISN have been summarized below.
In 2002, as part of a U.S. DOT-sponsored independent evaluation, the technical and institutional feasibility, costs, and benefits of intelligent transportation user services for commercial vehicle operations deploying CVISN were estimated (FHWA, 2002). The focus of the study was to estimate costs and benefits to states. In the process of gathering data to support that effort, a national motor carrier survey was conducted to gather qualitative data on costs and benefits of CVISN to motor carriers. A total of 158 responses were received. Across large motor carriers, the reported total in-house staff time involved in credentialing had a mean of between 1 and 2 full-time equivalent (FTE) days per power unit per year, with a median value of between 0.2 and 2 FTE days.
As for the time saved through electronic screening (preclearance or weigh station bypass), survey respondents estimated the mean amount of time involved per inspection to be 19 minutes for size/weight checks and 45 minutes for safety checks.
For the same study, three motor carriers were also interviewed in detail as part of the cost analysis data collection effort; two carriers were participating in the Kentucky deployment and one carrier in the Maryland deployment. Motor carriers were interviewed to gather information on the costs incurred in obtaining IRP credentials before and after CVISN deployment and the impact of CVISN systems on the efficiency and productivity of motor carrier operations. These three companies reported saving an average of between approximately 60 and 80 percent of their administrative costs for credentialing, and between approximately 50 and 60 percent of their labor hours after converting from paper-based to CVISN electronic credentialing.
The design of Washington State’s e-credentialing program, its deployment and operation, and some of the benefits realized through the use of intelligent transportation systems were documented in a case study (FMCSA 2004). Benefits identified included time savings through fewer administrative corrections cause by missing or illegible information and accurate tracking of fleet sizes and its associated paperwork. Customer feedback from one company, Gordon Trucking, based in Pacific, Washington, indicates a savings of approximately 1 hour of administrative labor per power unit for administering credentials electronically. Gordon Trucking operated over 1000 power units in 2004 and estimated adding approximately 200 new power units per year. Since joining the program in 2001, the company has reduced cost by going from 2 to 1.5 FTE administrative staff positions dedicated to license processing.
The PrePass electronic screening program has been shown to have a significant impact on the profitability of enrolled motor carriers (Walton, 2002). Benefits of the PrePass system in terms of time savings, fuel, and operational cost have been captured on a programmatic basis by Affiliated Computer Services (ACS), the system integrator and the operator of the PrePass system (PrePass, 2007). In 2006, 51,124,786 screening bypasses resulted in time savings of 4,260,399 hours, fuel savings of 25,562,393, and operational cost savings of $255,623,930.
Review of corporate press releases yielded additional anecdotal evidence on the economic benefits of the PrePass electronic screening system:
- Every stop at a weigh station costs carriers about $5.00 (PRNewswire, 2006a).
- Savings in Illinois from 1999 to June 2006 were estimated at more than $54.9 million or roughly $7.8 million annually (PRNewswire, 2006b).
- Savings in Missouri from 2002 to June 2006 were estimated at more than $32.1 million or roughly $8 million annually (PRNewswire, 2006c).
- Savings in Wyoming since from 1999 to June 2006 were estimated at more than $16.7 million or roughly $2.4 million annually (PRNewswire, 2006d).
- Savings in Nebraska from 1999 to June 2006 were estimated at more than $8.9 million or roughly 1.3 million annually (PRNewswire, 2006e).
- Savings in California from 1995 to June 2006 were estimated to exceed $131.5 million or roughly $12 million annually (PRNewswire, 2006f).
Further details are presented in Appendix C.