Whitepaper features a cost-to-benefit analysis of truck platooning for logistics service providers.
Netherlands
Truck Platooning Driving the Future of Transportation
Summary Information
The Netherlands Organization for Applied Scientific Research (TNO) analyzed the annual financial benefits and costs of platooning using real-life business cases that featured three Netherlands’-based logistics service providers: Peter Appel Transport (PAT), De Winter Logistics (DWL) and Europe Container Terminals (ECT).
Methodology
The table below shows the basic parameters used in each business, in terms of numbers of trucks, distance platooned, and man-hours associated with their routes.
| Parameters | Peter Appel Transport (PAT) | De Winter Logistics (DWL) | Europe Container Terminals (ECT) |
|---|---|---|---|
| Number of trucks used for platooning | 35 | 44 | 10 |
| Number of km per year per truck platooning | 77,500 | 44,000 | 40,000 |
| Number of man-hours | 169,500 | 246,800 | 7,500 |
Two scenarios were modeled for each agency based on the stages of implementation of the platooning technology:
Scenario A (earlier stage)- 2 trucks, 2 drivers.
- The driver of the Following Vehicle may be allowed to rest while his/her truck is still driving, thereby optimizing the resting times and minimizing truck idle time.
Scenario B (more advanced stage)- 2 trucks, 1 driver.
- The driver of the Following Vehicle might be omitted completely.
The following assumptions were made:
| Benefit Factors |
Explanation |
Assumptions |
|---|---|---|
| Fuel Consumption | The savings of fuel usage over the platooning route, stemming from air drag reduction | -10 percent reduction of fuel for both trucks, an average of the Leading and Following vehicle -Average fuel consumption of 4 km/L -price of diesel of €1.20 per liter |
| Labor Cost | Two scenarios: A. 2 trucks- 2 drivers. Resting times can be reduced. B. 2 trucks-1 driver. Part of the time, a driver can be omitted. |
-Labor costs of €20 to €25 per hour per driver, dependent on the carrier -the labor costs of the reduction in man-hours, are the savings Scenario A. 8% savings in resting times per day Scenario B. Reduction in man-hours of 15 percent to 25 percent, depending on case |
| Asset Utilization Optimization | Only applicable in Scenario A with 2 drivers. The truck is additionally employable for the reduction in resting times per year | Scenario A: -A truck is worth €4 per hour, based on depreciations of a €160,000 truck combination over 7 years. We assume the truck is used 51 weeks a year, 110 hours a week |
| Cost Factors |
Explanation |
Assumptions |
|---|---|---|
| Technology | Annual depreciation of the technology | Technology costs €2,000 per truck Average depreciation period for a truck is 7 years |
| Service Provider | Annual membership costs for service provider | €150 per year per truck |
| Additional periodic testing | Annual costs for additional testing & maintenance | €150 per year per truck |
| Training drivers | Annual depreciation for the training | €75 per year per driver |
Results
The following benefits were calculated for each Case/Scenario using the above parameters and assumptions:
| Case | Scenario | Total Benefits* | Total Costs | Profits | Profits per truck |
|---|---|---|---|---|---|
| Peter Appel Transport (PAT) | A. 2 dr B. 1 dr |
€492,000 €1,157,200 |
€28,400 €28,400 |
€463,500 €1,128,800 |
€13,200 €32,300 |
| De Winter Logistics (DWL) | A. 2 dr B. 1 dr |
€572,000 €870,800 |
€32,400 €32,400 |
€539,600 €838,400 |
€12,300 €19,100 |
| Europe Container Terminals (ECT) | A. 2 dr B. 1 d |
€19,800 €30,500 |
€6,600 €6,600 |
€13,200 €23,900 |
€1,300 €2,400 |
*In each business case, the majority of the estimated benefits stemmed from the reduction in man-hours. However, fuel reduction was also a substantial benefit, and in the PAT and DWL cases, was alone enough to compensate for all the annual costs that were incurred. In the ECT case, since driving was mostly done at low-speeds and over short distances, fuel savings were very limited and the savings in man-hours were needed to offset annual platooning costs.
