Benefit

Truck Platooning Business Case Study finds fuel savings alone offset annual costs – with labor cost savings as pure profits.

Whitepaper features a cost-to-benefit analysis of truck platooning for logistics service providers.


02/02/2015


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.

ParametersPeter Appel Transport (PAT)De Winter Logistics (DWL)Europe Container Terminals (ECT)
Number of trucks used for platooning354410
Number of km per year per truck platooning77,50044,00040,000
Number of man-hours169,500246,8007,500

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 ConsumptionThe 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 CostTwo 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 OptimizationOnly applicable in Scenario A with 2 drivers. The truck is additionally employable for the reduction in resting times per yearScenario 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 technologyTechnology costs €2,000 per truck
Average depreciation period for a truck is 7 years
Service ProviderAnnual membership costs for service provider€150 per year per truck
Additional periodic testingAnnual costs for additional testing & maintenance€150 per year per truck
Training driversAnnual 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:

CaseScenarioTotal Benefits*Total CostsProfitsProfits 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.

Benefit Comments

No comments posted to date

Comment on this Benefit

To comment on this summary, fill in the information below and click on submit. An asterisk (*) indicates a required field. Your name and email address, if provided, will not be posted, but are to contact you, if needed to clarify your comments.



Source

Truck Platooning Driving the Future of Transportation

Author: Janssen, Robbert; Han Zwijnenberg; Iris Blankers; Janiek de Kruijff

Published By: Netherlands Organization for Applied Scientific Research (TNO)

Source Date: 02/02/2015

Other Reference Number: Report No. TNO 2014 R11893

URL: http://publications.tno.nl/publication/34616035/dLIjFM/janssen-2015-truck.pdf

Rating

Average User Rating

0 ( ratings)

Rate this Benefit

(click stars to rate)


Benefit ID: 2017-01135