United States Department of Transportation
i
Benefit-cost assessment of the commercial vehicle information systems and networks (CVISN) in Maryland
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1998-11-01
[PDF-271.38 KB]
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Abstract:The objective of this study is to answer questions regarding the net benefits of CVISN deployment by the State of Maryland. The hypothesis is that the net benefits of CVISN deployment are positive and large but vary among system components and between the state and the motor carrier industry. The methodology consists of both quantitative and qualitative analyses of the benefits and costs of the CVISN project. Costs and benefits are discounted to a present value over the economic life of the project. Two alternatives are the basis of comparative analysis: CVISN deployment of an agreed-upon configuration and preservation of the status quo. The study offers a comprehensive analysis of the benefits accrued and costs incurred for CVISN-related activities to Maryland state regulatory agencies and commercial motor carriers. The benefits and costs are assessed with regard to both agency and carrier interests, and the impact of CVISN on credential processing and safety enforcement is explored in detail. The quantitative analysis is conducted in terms of Benefit/Cost Ratios and Net Present Values (NPV). In addition, qualitative analysis is offered for the following areas in which the benefits and costs of CVISN cannot be assigned dollar values: cost reduction benefit, societal benefit, increase in revenue benefit, and economic benefits to Maryland. The benefit/cost analysis attests to the economic feasibility of the CVISN project. The B/C ratios range from 3.28 to 4.68 for the worst and best case estimates for the benefits modeled. The NPVs range from $76 million to $123 million. For agencies and carriers the worst case B/C ratios are 1.45 and 6.67, respectively. Due to the competitive nature of the commercial vehicle industry, the benefits accrued by carriers will be passed on to receivers, shippers, and, eventually, the consumers and citizens of Maryland.
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