CVISN business case (commercial vehicle information systems and networks)

The objective was to evaluate economic justifications and institutional issues affecting motor carriers and State transportation agencies regarding the deployment of CVISN technologies. 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. This report summarizes two similar but separate business cases, one primarily from the State government perspective and the other from the motor carrier industry perspective. Results are based on interviews with 60 representatives of commercial vehicle-related businesses and agencies. The most important benefits of CVISN are time savings, increased efficiency, and improved opportunities for collaboration between states and motor carrier associations. For motor carriers, an economic analysis based on a 10-year deployment indicates significant, near-immediate financial benefits to carriers from taking part in electronic credentials administration, primarily through the ability to put new trucks into service more quickly. The overall return on investment ratio for electronic credentialing is estimated at 2,971:1. For electronic screening, for all but one of the companies under study, the projected 10-year return on investment ranges from 6.1:1 to 15.9:1, with payback periods of less than one year. For the motor carrier industry, these findings suggest that wider adoption of CVISN technologies would yield significant returns on relatively modest investments.