Benefit

An analysis of benefits and costs of Roll Stability Control (RSC) Systems for the trucking industry found benefits per dollar spent values of $1.66 to $5.34 with varying estimates of efficiency and annual VMT.


February 2009
Nationwide,United States


Summary Information

The goal of the Federal Motor Carrier Safety Administration (FMCSA) is to reduce the number and severity of commercial motor vehicle (CMV) crashes. Over the last several years, FMCSA has collaborated with the trucking industry to test, evaluate, and encourage the deployment of several onboard safety systems (OSS) for CMVs in an effort to enhance the safety of all roadway users. As part of an ongoing FMCSA effort to encourage voluntary adoption of onboard safety systems, this analysis builds on previous field operational testing by refocusing benefit-cost assessments from more general societal impacts to targeted motor-carrier-industry outcomes, since motor carriers are the end-users responsible for investment and deployment of OSS.

For the Benefit Cost Analysis, the benefits in terms of crash cost avoidance were compared to the costs in terms of total technology costs. The data for the potential benefit, measured in terms of crash cost avoidance, came from information provided by insurance companies and motor carriers on actual expenses incurred in a CMV crash. The benefit potential was measured against the purchase, installation, and operational costs of Roll Stability Control (RSC) systems in motor carrier operations. As a result, this assessment incorporates actual motor-carrier-based benefit-cost data.

FINDINGS

When the anticipated costs and benefits of the RSC systems are compared, the benefits of using the system over a period of five years outweigh the costs associated with purchasing the systems at each efficiency rate (53% and 37% determined using information from simulations and motor carrier feedback, and used to estimate the portion of these types of crashes that could be preventable by RSC systems) and for the vehicle miles traveled (VMT) categories used, starting at 80,000 VMT. For every dollar spent, carriers received more than a dollar back in benefits that could be quantified for this analysis.

Tables 1 through 4 present the average benefits a motor carrier could expect to receive for each dollar invested in stability systems.


Average Annual VMT
RSC 37% Efficiency
RSC 53% Efficiency
RSC and Traction Control 37% Efficiency
RSC and Traction Control 53% Efficiency
80,000
$3.27
$4.68
$1.87
$2.67
100,000
$4.08
$5.85
$2.33
$3.34
120,000
$4.90
$7.02
$2.80
$4.01
140,000
$5.72
$8.19
$3.27
$4.67
160,000
$6.54
$9.36
$3.73
$5.34
Table 1: Anticipated Benefits per Dollar Spent for Purchasing RSC System, 3% Discount Rate without Financing


Average Annual VMT
RSC 37% Efficiency
RSC 53% Efficiency
RSC and Traction Control 37% Efficiency
RSC and Traction Control 53% Efficiency
80,000
$3.05
$4.37
$1.72
$2.47
100,000
$3.81
$5.46
$2.16
$3.09
120,000
$4.58
$6.56
$2.59
$3.71
140,000
$5.34
$7.65
$3.02
$4.32
160,000
$6.10
$8.74
$3.45
$4.94
Table 2: Anticipated Benefits per Dollar Spent for Purchasing RSC System, 7% Discount Rate without Financing


Average Annual VMT
RSC 37% Efficiency
RSC 53% Efficiency
RSC and Traction Control 37% Efficiency
RSC and Traction Control 53% Efficiency
80,000
$3.03
$4.34
$1.71
$2.45
100,000
$3.78
$5.42
$2.14
$3.06
120,000
$4.54
$6.51
$2.56
$3.67
140,000
$5.30
$7.59
$2.99
$4.29
160,000
$6.05
$8.67
$3.73
$4.90
Table 3: Anticipated Benefits per Dollar Spent for Purchasing RSC System, 3% Discount Rate with Financing


Average Annual VMT
RSC 37% Efficiency
RSC 53% Efficiency
RSC and Traction Control 37% Efficiency
RSC and Traction Control 53% Efficiency
80,000
$2.95
$4.22
$1.66
$2.38
100,000
$3.68
$5.28
$2.07
$2.97
120,000
$4.42
$6.33
$2.49
$3.56
140,000
$5.16
$7.39
$2.90
$4.16
160,000
$5.89
$8.44
$3.32
$4.75
Table 4: Anticipated Benefits per Dollar Spent for Purchasing RSC System, 7% Discount Rate with Financing

Payback periods were also calculated to determine the length of time required to recover the initial investments made for the stability systems. Although the motor carrier can expect a positive return on investment by purchasing the technology, the amount of time it will take for a motor carrier to realize positive benefits after purchasing the system varies by the average VMT per truck and the type of the technology. The formula for calculating the payback period used is: Payback Period=system cost /annual cash inflow

The payback periods in months are shown in Table 5.

Average Annual VMT
RSC 37% Efficiency
RSC 53% Efficiency
RSC and Traction Control 37% Efficiency
RSC and Traction Control 53% Efficiency
80,000
17
12
30
21
100,000
14
10
24
17
120,000
12
8
20
14
140,000
10
7
17
12
160,000
9
6
15
11
Table 5: Payback Period of RSC System in Months

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Source

Analysis of Benefits and Costs of Roll Stability Control Systems for the Trucking Industry

Author: Dan Murray, Sandra Shackelford, Amy Houser

Published By: Department of Transportation - Federal Motor Carrier Safety Administration

Source Date: February 2009

URL: http://www.fmcsa.dot.gov/facts-research/research-technology/report/09-020-RP-Roll-Stability.pdf

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Goal Areas

Safety
Productivity

Typical Deployment Locations

Statewide

Keywords

None defined

Benefit ID: 2009-00608