View - I-95 Corridor Coalition

PHASE I REPORTList of Figures1. States in the I-95 Corridor Study Area........................................................................... Page 32. Major Generators of Motor Carrier Freight (Establishments perSquare Kilometer, by County)..................................................................................... Page 63. New Typology for Trucks: Example............................................................................ Page 184. I-95 Commercial Motor Carrier Market Segmentation Analysis: Sample Selection ... Page 195. Comparison of National and I-95 Corridor Commercial Vehicle Operations:Major Use Categories............................................................................................... Page 206. Comparison of National and I-95 Corridor Commercial Vehicle Operations:Principal Product Categories .................................................................................... Page 217. States in the I-95 Corridor Study Area......................................................................... Page 258. Business Economic Areas in I-95 Corridor Study Area ............................................... Page 269. I-95 Motor Carrier Interviewees: Operating Characteristics ....................................... Page 3010. Routing and Dispatching Decision Wheel: Sample .................................................... Page 3211. Major Generators of Motor Carrier Freight (Establishments per Square Kilometer,by County)................................................................................................................. Page 3812. Major Generators of Motor Carrier Freight in New England (Establishments perSquare Kilometer, by County) ................................................................................. Page 3913. Major Generators of Motor Carrier Freight in the New York Metro Area(Establishments per Square Kilometer, by County) ................................................ Page 4014. Major Generators of Motor Carrier Freight in the Mid-Atlantic Region(Establishments per Square Kilometer, by County) ................................................ Page 4115. Commercial Vehicle Average Annual Daily Traffic on Interstate Routes, 1993......... Page 4316. Commercial Vehicle Average Annual Daily Traffic on Interstate Routes inNew England, 1993................................................................................................. Page 4417. Commercial Vehicle Average Annual Daily Traffic on Interstate Routes in theNew York Metro Area, 1993.................................................................................... Page 4518. Commercial Vehicle Average Annual Daily Traffic on Interstate Routes in theMid-Atlantic Region, 1993....................................................................................... Page 4619. I-95 Motor Carrier Interviewees: Summary of Fleet Management Capabilities ........ Page 49Page vii

PHASE I REPORTList of Figures (continued)E-1. Processed Food (Trucks Over 10,000 Pounds)..................................................... Page E-2E-2. Building Materials (Trucks Over 10,000 Pounds)................................................... Page E-4E-3. Liquid Petroleum (Trucks Over 10,000 Pounds) .................................................... Page E-6F-1.General Freight/Mixed Cargo (Trucks Over 10,000 Pounds):Market Segmentation .......................................................................................... Page F-2F-2. Moving Companies (Trucks Over 10,000 Pounds): Market Segmentation........... Page F-3F-3. Refuse (Trucks Over 10,000 Pounds): Market Segmentation .............................. Page F-4F-4. Fresh Farm Products (Trucks Over 10,000 Pounds): Market Segmentation........ Page F-5F-5. Wholesale Trade (Trucks Over 10,000 Pounds): Market Segmentation .............. Page F-6F-6.Manufacturing, Refining and Processing (Trucks Over 10,000 Pounds):Market Segmentation .......................................................................................... Page F-7F-7. Retail Trade (Trucks Over 10,000 Pounds): Market Segmentation ...................... Page F-8F-8. Construction (Trucks Over 10,000 Pounds): Market Segmentation ..................... Page F-9F-9. Utilities (Trucks Over 10,000 Pounds): Market Segmentation ............................. Page F-10F-10. Agriculture (Trucks Over 10,000 Pounds): Market Segmentation ....................... Page F-11G-1. Routing and Dispatching Decision Wheel: A-P-A Transport................................. Page G-2G-2. Routing and Dispatching Decision Wheel: Capitol Trailways................................ Page G-3G-3. Routing and Dispatching Decision Wheel: J.F. Flick, Inc...................................... Page G-5G-4. Routing and Dispatching Decision Wheel: Interstate Van Lines ........................... Page G-6G-5. Routing and Dispatching Decision Wheel: National Freight.................................. Page G-8G-6. Routing and Dispatching Decision Wheel: New England Motor Freight ............... Page G-9G-7. Routing and Dispatching Decision Wheel: Paul’s Trucking ............................... Page G-11G-8. Routing and Dispatching Decision Wheel: Peter Pan Bus Lines –Charter/Tour Services ......................................................................................... Page G-12G-9. Routing and Dispatching Decision Wheel: Peter Pan Bus Lines –Intercity/Fixed-Route Service .............................................................................. Page G-13G-10. Routing and Dispatching Decision Wheel: Red Lion.......................................... Page G-15G-11. Routing and Dispatching Decision Wheel: Virginia Tank Lines ......................... Page G-16G-12. Routing and Dispatching Decision Wheel: Wills Trucking ................................. Page G-17Page viii

PHASE I REPORTList of Tables1. Commodities and Industries Analyzed ........................................................................ Page 42. Service Attribute Preferences...................................................................................... Page 93. Commodities and Industries Analyzed ........................................................................ Page 234. Freight Activity Center Data Sources........................................................................... Page 275. I-95 Corridor Commercial Vehicle Activity Centers Database: Data Coverage.......... Page 286. Choice Exercise Attributes .......................................................................................... Page 337. Factors Affecting Routing and Dispatching Decisions of Surveyed Motor Carriers .... Page 478. Service Attribute Preferences...................................................................................... Page 51C-1. Fleet Management Technologies........................................................................... Page C-9C-2. Summary of Satellite AVL Technologies ............................................................... Page C-16C-3. Summary of Ground-Based Infrastructure AVL Technologies.............................. Page C-23C-4. Summary of Fleet Management Technologies: Benefits and Drawbacks ........... Page C-44C-5. Fleet Management Technologies: Major Vendors and Costs .............................. Page C-45Page v

1.0 INTRODUCTION1.1 PURPOSE OF THIS REPORTThis report summarizes the results of an effort to understand the information needs of the motorcarrier industry for safe and efficient operations in the I-95 Corridor (Phase I, Tasks 1 and 2 of thework plan). It presents both qualitative and quantitative assessments of the needs and demandsfor traffic information in the I-95 Corridor motor carrier industry.The goals of this effort were as follows:♦Sort the motor carrier industry into market segments and determine each segment’sneed for information on highway incidents, construction, weather, and traffic congestion;and♦Determine the need and potential market for better and more accessible informationon highway conditions, weather, and optimum routing.These assessments were used to develop an operational test of an advanced traveler informationsystem (ATIS) that provides carriers operating in the I-95 Corridor with better and more timelyinformation on congestion, incidents, and weather, and optimum routing (Phase I, Task 3 of thework plan).1.2 ORGANIZATION OF THIS REPORTSection 2.0 discusses the approach and methodology used to describe and analyze the currentand potential information needs of the motor carrier industry operating in the I-95 Corridor. Themajor findings of the analysis are reviewed in Section 3.0. Section 4.0 highlights the major conclusionsregarding motor carrier information needs and the potential market for providing thisinformation. Recommendations for the design of the operational test are presented inSection 5.0. The operational test on advanced traveler information systems (ATIS) that wasdeveloped as a result of these efforts is provided in Section 6.0.Appendix A contains the motor carrier associations’ survey used to elicit the market segments tobe targeted for interviews. The guides used for those interviews comprise Appendix B.Appendix C reviews the current and emerging ITS technologies used in fleet management. APage 13

sample choice exercise packet which was used to collect stated-preference data from motorcarriers on this needs and ATIS marketability is provided in Appendix D. The analysis andtypologies resulting from the study of selected motor carrier and motor coach market segmentsare presented in Appendixes E and F. Appendix G describes specific motor carrier operations,and routing and dispatching processes, and Appendix H reviews the model developed from themotor carrier choice exercise data and the service marketability findings for ATIS.Page 14

2.0 RESEARCH APPROACH AND METHODOLOGY2.1 OVERVIEWThe overall research goal was to develop an ATIS that would meet the needs of the carriers operatingin the I-95 Corridor. In conducting this research, the following general principles guided theapproach:♦Carefully define the markets for CVO services. The motor carrier industry is highlyfragmented, reflecting the widely varying needs of the numerous businesses andindustries served by motor carriers. Each market segment’s needs for fleet managementinformation will vary according to the market segment’s operationalcharacteristics – for example, the type of cargo carried, the fleet size, and the geographicscope of its operations. All of these factors influence a motor carrier’s interestand capacity for investing in fleet management technologies and services.♦Work to understand motor carrier fleet management in the context in which motorcarriers operate. In addition to understanding how commercial traffic flows within thecorridor, it is important to appreciate the other forces that drive fleet managementpractices. Traffic congestion and shipment origins and destination are only a few ofseveral factors that determine how a motor carrier’s routing and dispatching decisionsare made. Other decision factors may include the availability of drivers and vehicles,as well as delivery parameters.This section of the report describes the methodology that was followed to complete the majorPhase I research tasks. These tasks included defining the major motor carrier markets in the I-95Corridor; identifying the Corridor’s major trucking activity centers and freight flows; describingmotor carrier routing and dispatching operations, and the technologies supporting those operations;and evaluating whether or not a market exists for the provision of ATIS to motor carrierfleets.2.2 METHODOLOGY: WORK PLAN2.2.1 Task 1: Collect Data on Motor Carrier Markets and OperationsThis task was divided into subtasks.Page 15

Subtask 1a: Define Motor Carrier MarketsThe objectives of this subtask were to define and estimate the size of the major motor carriermarket segments in the I-95 Corridor, and to identify the types of carriers who should be interviewedto determine motor carrier needs for traffic and incident information.For the market segmentation task, it was determined that the descriptors used for the traditionalsegmentation of the industry (for example, private vs. for-hire operations, and truckload vs. lessthan-truckloadcarriers) did not address the project’s needs. A new segmentation was developedfor this study based on the operating characteristics that determine a motor carrier’s fleet managementand information needs. These characteristics were principal product carried, geographicrange of operation, fleet size, routing variability, and time sensitivity.♦Principal Product Carried – This distinguishes trucks carrying various types of products,and accounts for the differing needs of the industries they serve. Principalproducts for fleets operating in the Corridor included processed foods, general freight,building materials, household goods, petroleum, refuse, and fresh farm products;industries/major uses included wholesale, manufacturing, retail, construction, utilities,and agriculture.♦Geographic Range of Operation – Fleets were classified, according to their range ofoperations from their home base, as local (under 50 miles), regional (50-200 miles),or national (over 200 miles).♦Fleet Size – This differentiates among motor carriers’ needs and capacities foremploying fleet management and incident response technologies; fleets were classifiedas small (five or fewer vehicles); medium/small (6-19 vehicles); medium (20-99vehicles); large (100-500 vehicles); or very large (over 500 vehicles).♦Routing Variability – This characteristic differentiates motor carriers operating repetitive,fixed routes (who, therefore, may have relatively little need for truck routing andtracking systems) from variable route carriers (who may change their destinationsdaily, and so may derive greater benefits from the sophisticated tracking and routingcapabilities provided by ITS); fleets were classified as “fixed” or “variable.”♦Time Sensitivity of Deliveries – This identifies those segments of the industry thatoperate with relatively tight and inflexible delivery schedules and, therefore, may findPage 16

the travel time savings provided by an ITS to be particularly useful; fleets wereclassified as “time sensitive” or “non-time sensitive.”The typology is set up as a branching tree, with an individual fleet represented by a path through aset of branches; individual segments of the trucking industry can be described by single pathsthrough the branches. For example, one carrier segment might be described as small carriersserving the manufacturing industry, providing regional service on fixed routes and making nontime-sensitivedeliveries. An example of the tree for this segment of the motor carrier industry isshown in Figure 3.Once the typology was established, the size of the individual market segments was estimatedusing a subsample of trucks from the 1987 Truck Inventory and Use Survey (TIUS), the mostrecent survey available at the time of the analysis. 1 The TIUS, a national database published bythe U.S. Census Bureau, includes pickup trucks, vans, single-unit light trucks, single-unit heavytrucks, and truck tractors. Selecting trucks whose bases of operation are within the I-95 Corridorstates reduced the total sample size from 44.6 million vehicles in the national sample to 6.7 millionvehicles. Trucks over 10,000 pounds, which as a group are believed to account for more than 75percent of all truck-miles of travel and most of the ton-miles and revenue-miles of travel in urbanareas, are the major focus of this analysis. Limiting the sample to trucks of this size reduced thesample size further to 647,000 vehicles. Further limiting the sample to trucks operated on publicroads and highways by private or for-hire fleets resulted in a final sample size of approximately583,000 vehicles. The sample selection procedure is illustrated in Figure 4.Trucks were assigned to market segments based on the team’s knowledge of truck fleet operations,supplemented by interviews with motor carrier operators and industry experts. The initialassignments were based on the general characteristics of trucks and fleets servicing a specificindustry; for example, trucks servicing the processed food industry. The characteristics of the I-95Corridor ‘‘fleet” represented by the TIUS subsample were compared with those of the motor carrierindustry for the nation as a whole. Establishing that the national and I-95 Corridor fleet characteristicswere highly similar made it possible to apply the national assumptions about routingvariability and time sensitivity to most of the I-95 Corridor motor carrier market segments, and todevelop corridor-specific assumptions where the fleet profiles differed significantly. Figures 5 and 61 The TIUS database actually contains data on each truck’s state of registration, as well as the state in which it is based(i.e., the “home base” state). After carefully comparing these two potential subsamples – and finding their distributionsto be highly similar – it was decided to use home base state rather than state of registration, because a truck’s homebase state corresponds more closely to its area of operation than does its state of registration.Page 17

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illustrate how the I-95 Corridor fleet compares to the national fleet with respect to principal productand major use categories, respectively.Detailed market segmentations were conducted for a total of six commodities and five industrygroups as listed in Table 3. The selection of commodities and industries was designed to presenta representative cross-section of the trucking industry operating in the I-95 Corridor, and toencompass a variety of different types of trucking operations.The TIUS database used as the basis for the market segmentation contains information on geographicranges of operation and the sizes of the fleets in which the trucks operate, but not onrouting variability or time sensitivity of deliveries. Assumptions regarding these factors weredeveloped based on discussions with fleet operators from various trucking industry segments anddata gathered by industry analysts on the nature of trucking operations for each of the commoditiesand industry segments analyzed. The methodology and assumptions used to assign trucks toparticular categories varied by product group because each product group has its own uniqueconsiderations.To guide the selection of carriers for interviews, two working assumptions were developed. First,it was assumed that carriers with regional operations are likely to be the primary market for trafficand incident information concerning major highways outside of local metropolitan areas, but withinthe corridor. Second, it was assumed that medium-sized fleets would be more likely than smallerfleets to have the types of staff and technology that would enable them to make systematic use ofcorridor-level traffic and incident information. Medium-sized fleets also can be used as a proxy forlarger fleets, which represent only a small percentage of the total motor carrier industry. Theseassumptions resulted in a focus on medium-sized carriers (fleets of 20-99 trucks) with regionalscaleoperations (average trip lengths of 50-200 miles). Additional interviewees were selected toensure coverage of the major principal product and industry groups with operations in the corridor,and of industry segments with large absolute numbers of trucks.Subtask 1b: Identify Major Trucking Activity Centers and Freight FlowsThe objectives of this subtask were to develop databases of the Corridor’s major trucking activitycenters and the volumes of commercial vehicles traveling on interstate routes within the Corridor’sstudy area.Geographic information system (GIS) maps were developed to display the activity centers andtraffic volumes. These maps were used with the databases to draw conclusions regarding highvolumeareas and routes within the corridor.Page 22

Table 3Page 23

The first step was to define the study area boundaries. The study area is a corridor approximately200 miles wide, which includes all or part of 13 states (Maine, New Hampshire, Vermont,Massachusetts, Rhode Island, Connecticut, New York, New Jersey, Pennsylvania, Delaware,Maryland, Virginia, and West Virginia) 2 (see Figure 7). The area was refined slightly for the purposesof this task because one of the principal sources of data on trucking activity centers, theFreight Locator database, is organized by zones of commerce, or Business Economic Areas(BEAs). For the purposes of the activity center identification, the final study area boundary comprisedthe boundaries of the 19 BEAs that correspond most closely to the proposed study area(see Figure 8).The construction of the database on freight activity centers began with a substantial data collectioneffort. Many of the data sets collected required subsequent manipulation to generate consistentcounty-level data. Separate data files were created with information on the locations ofindividual manufacturing plants, wholesale trade facilities, airports, marine ports, and intermodalhighway/rail terminals. These data were gathered from a variety of sources, as listed in Table 4.The individual files were integrated into a single, comprehensive database using MicrosoftAccess. Data on the number of facilities are included for all types of activity centers (see Table 5).However, the data on employment and freight volumes are available for only some activity centertypes. This uneven coverage reflects the differences in the format and content of the original datasets.Data on commercial vehicle traffic in the corridor were obtained from two databases maintainedby the Federal Highway Administration: the National Highway Planning Network (NHPN) database,which provides geographically coded information on the location of Interstate highways,state routes, and local roads; and the Highway Performance Monitoring System (HPMS) database,which provides information on commercial vehicle volumes. Both the NHPN and the HPMSdatabases include codes that identify the county through which each route or sample segmentpasses. The combined NHPN and HPMS data may be used to analyze commercial vehicle trafficalong major highways. The final version of the commercial vehicle volume database containedinformation on the average annual daily commercial vehicle trips by county on every interstateroute in the I-95 Corridor study area.2 The portion of West Virginia that falls within the study area has been included because of the state’s interest inparticipating in the Coalition’s commercial vehicle activities.Page 24

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From the information in the freight activity center and commercial vehicle volume databases, GISmaps were created to display the geographic distribution, by county, of trucking establishments inthe study area; and commercial vehicle volumes on interstate routes in the study area. Mapswere developed for the study area as a whole, and for each of the Corridor’s three subregions(New England, New York Metropolitan, and Mid-Atlantic).Subtask 1c: Describe Motor Carrier Routing and Dispatching OperationsThe objectives of this task were to document motor carrier routing and dispatching procedures,technologies, and driving factors.This task involved identifying interview candidates; developing an interview guide; conductinginterviews with motor carriers and motorcoach operators; and documenting motor carrier routing,dispatching practices, and information needs. It also involved collecting information on the technologiesused by motor carrier fleets to assist with routing and dispatching.The research conducted under Subtask 1a generated priority lists of market segments to be targetedfor interviews. These lists were the basis for a survey distributed to the Motor CarrierAssociation in each of the I-95 Corridor states. In the survey, the principal products carried andthe operating characteristics of the motor carriers that the study team proposed to interview wereidentified (see Appendix A for a copy of the survey). The respondents were requested to identifyas many motor carriers as possible that corresponded with the fleet descriptions provided in thesurvey. Once the surveys were returned, a list of interviewees was compiled. This list wasrefined using information from Subtask 1b on the major freight activity centers and high-volumefreight corridors in the I-95 Corridor. The selected group of carriers includes operators hauling avariety of products, with different operating characteristics in different geographic locations. All ofthe carriers have extensive operations in the I-95 Corridor. Figure 9 summarizes the operatingcharacteristics of the 11 companies that were interviewed.All of the interviews were conducted in person by members of the study team. Typically, the personinterviewed was the President or Director of Operations for the company. Before conductingthe interviews with motor carriers and motorcoach operators, interview guides (see Appendix B)were developed to ensure that consistent information was collected at each interview. Each guideincluded an overview of the study’s objectives and the goals of the interview; general questionsabout the company and its operations; questions focusing specifically on routing and dispatching,and current technology use; and questions related to anticipated future technology and informationneeds. The interview guide for motorcoach operators was modified slightly to reflect the differencesbetween motor carrier and motorcoach operations.Page 29

Figure 9Page 30

To summarize the lessons learned about motor carrier routing and dispatching practices andinformation needs, the study team developed routing and dispatching “decision wheels” for eachmotor carrier and motorcoach operator that was interviewed. Figure 10 depicts a generic routingand dispatching decision wheel. The hub of the decision wheel is the motor carrier routing anddispatching operation; the spokes of the wheel represent the key pieces of information/decisionfactors which influence routing and dispatching. Each spoke is assigned a number to indicate thepriority in which the decision factor is considered when making routing and dispatching decisions.For example, if a motor carrier’s primary objective is to reduce unladen vehicle-miles, this decisionfactor receives a priority one rating.An extensive literature search was performed to collect information summarizing the key matureand emerging technologies that should be considered for the design of the operational test inPhase I, and for the development of an overall CVO Program in Phase II. The results of the datacollection effort are presented in Appendix C.2.2.2 Task 2: Determine Information Needs by Market SegmentThe objectives of this task were to understand the ATIS features and service attributes that wouldbe preferred by motor carriers, and to establish whether or not a market exists for the provision ofan ATIS to commercial vehicle operators.This task involved developing a motor carrier choice exercise; building a database of motor carriersto participate in the choice exercise; and administering and analyzing the choice exercise.Because traveler information services for commercial vehicle operators are not widely available,little information on actual purchasing behavior or service preferences is available. To evaluatethe preferences of potential users, “stated-preference” data were collected. Stated-preferencedata reveal the preferred option of a potential user, selected from a series of options. These datadiffer from revealed-preference data in that they reflect anticipated purchasing behavior ratherthan actual purchasing patterns.To gather stated-preference data that likely would indicate how operators would behave if an ATISwere to be offered, a series of choice exercise worksheets were developed on user needs andmarketability. A choice exercise is a survey tool which presents respondents with a series ofservice options. Each service option varies with respect to service attributes (such as informationrecipient or broadcast frequency) and cost. For the purposes of this effort, an ATIS was definedwith respect to six service and two cost attributes; these attributes are identified in Table 6.Page 31

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Appendix D provides a sample choice exercise packet. Respondents selected a preferred serviceoption from each choice exercise; this was used to identify user needs.In choosing between the two ATIS packages, carriers were forced to make tradeoffs similar tothose that may be faced when making real-life decisions. For instance, an operator may be askedto choose between a simple, low-cost option and an option offering more features, which may beof significant value to the operator, but costing more. When enough operators choose betweenenough competing options, a realistic picture of operator preference and behavior can bedeveloped.The attributes were varied among the choice experiments according to a prespecified experimentaldesign which assured the ability to isolate and quantify each attribute’s effects on thechoice experiments through the use of appropriate statistical modeling. To meet the requirementsof the design, a total of 42 different attribute packages were developed. Each carrier was presentedwith a total of six choice exercises to complete. Respondents received different choiceexercise packages.To evaluate marketability, respondents then were asked to indicate the likelihood of purchasingtheir preferred alternative, if it were available, measured on a scale of zero (Definitely Would NotPurchase) to 10 (Definitely Would Purchase). They also were asked to indicate the number oftrucks and dispatch centers that they would equip with their preferred service option. In combinationwith the choice exercise data, the likelihood of purchase reveals which ATIS packages aremost preferred and marketable.A database of 225 motor carriers was developed in conjunction with the National Private TruckCouncil, an industry association representing private carriers; and the American TruckingAssociations, an industry association that represents for-hire carriers. Choice exercises weredistributed to each of these carriers, along with a carrier profile sheet that asked questions aboutthe carrier’s fleet and operating characteristics (e.g., number of power units, operating range,etc.).Completed choice exercises were received from 74 motor carriers. The survey responses werecoded and entered into a spreadsheet for analysis. Follow-up telephone calls were made to clarifyquestions regarding the returned choice experiments and profiles.Page 34

3.0 ANALYSIS AND FINDINGS3.1 MOTOR CARRIER MARKETS IN THE I-95 CORRIDORApproximately 6.7 million trucks have their bases of operation located within the I-95 Corridorstates. Of these vehicles, approximately nine percent (roughly 583,000 vehicles) are medium orheavy trucks operated on public roads and highways; these vehicles were the focus of the marketsegmentation analysis. Private fleets account for 80 percent of these 583,000 vehicles, with forhireoperations comprising the remaining 20 percent.Using the new motor carrier typology, the I-95 Corridor motor carriers were sorted by industry(using six principal commodity categories and five major use categories), range of operation, fleetsize, routing variability, and time sensitivity of operations. Detailed analyses were conducted forthree of the largest industry segments: building materials, processed foods, and liquid petroleum– to illustrate the analytical procedures followed in the development of the typologies, particularlyin applying the assumptions regarding route variability and time sensitivity in estimatingthe sizes of the market segments. These three analyses are provided in Appendix E. Typologiesfor the remaining industry segments are provided in Appendix F.The findings of this analysis were as follows:♦Principal product carried: Truck fleet operations are influenced, first and foremost, bythe commodities the trucks haul most often. Trucks carrying fresh vegetables, forexample, will have different delivery schedules and production-to-distribution routesthan will trucks hauling gravel or gasoline, both because of the nature of the productsand because of the characteristics of the industries that produce and consume theproducts. The principal products and major uses of goods carried by motor vehiclesin the I-95 Corridor generally mirror those for the nation as a whole. 11 The exceptions are agriculture and fresh farm products, which represent smaller percentages of trucks in the I-95states than in the nation as a whole; and contracting, which has a higher percentage of trucks in the I-95 Corridor thanfor the entire United States. The differences between the nation and the region for agriculture and fresh farm productsstem from the fact that the nation as a whole is more agriculturally oriented than are the I-95 Corridor states. The overrepresentationof the contracting industry in the region reflects the fact that the region is more densely developed thanthe nation as a whole. Also, by selecting trucks that operate exclusively within their home base states, the TIUS subsamplecaptures a preponderance of local and regional trips; because most contracting work is performed on a localbasis, the subsample contains a higher percentage of contractor trucks than does the national sample.Page 35

♦Geographic range of operation: Fleet operations vary depending on their geographicscale. Trucks operating locally within metropolitan areas (i.e., within 50 miles of theirbase of operation) face very different scheduling and routing conditions, and operateon different classes of roadways, than trucks operating primarily at a regional scale(50 to 200 miles from base of operation) or a national scale (over 200 miles frombase of operation).♦Fleet size: The number of vehicles in a fleet affects the financial burden associatedwith ITS investment. For example, larger fleets may have fleets have proportionatelymore resources available for maintaining and upgrading their fleets than do companiesoperating only a few trucks. Even if budgets are proportional across fleet sizes,the absolute per-truck cost of installing certain ITS technologies may be out of rangefor small companies. Conversely, the total initial cost of implementing some ITStechnologies may prove to be a significant burden for large fleets.♦Routing variability: Generally, the greater the variability of a fleet’s routes, the greaterthe incentive to use technology for tracking truck movements. Operators whoseroutes are subject to frequent or sudden changes benefit from up-to-the-minuteinformation concerning road closures, congestion, and other factors. In addition,these operators also benefit from the ability to track the locations of individual vehicles;such information allows them to reroute vehicles rapidly, to choose the shortestor fastest alternate routes, and to minimize unladen mileage.♦Time sensitivity of deliveries: Time sensitivity refers to the urgency of a shipment:the amount of time that is available in which to make a delivery (the “delivery window”),and also to the consequences to truck operators and their clients of missingspecified delivery times. Time sensitivity is determined primarily by the product beingcarried and the industry being served. Trucking companies that operate on highlytime-sensitive schedules benefit greatly from the ability to track individual vehiclesand forecast delivery times precisely.3.2 MAJOR TRUCKING ACTIVITY CENTERS AND FREIGHT FLOWSA geographic information system (GIS) was used to create maps of the trucking activity centersand the commercial vehicle volumes in the study area. The goal was to develop a visual portrayalof the spatial distribution of the trucking centers and freight lanes.Page 36

3.2.1 Freight Activity CentersThe heaviest concentration of trucking activity centers in the study area extends from Boston toWashington, and is centered on the New York/northern New Jersey metropolitan area. I-95 is the“spine” of this corridor.The greatest concentration occurs in the region stretching from southeastern New Hampshirethrough southern New Jersey (see Figure 11). 2 This distribution reflects the economic dominanceof the Boston, New York City, and northern New Jersey metropolitan areas. Smaller concentrationsof freight shipping establishments and facilities exist in southeast and southwestPennsylvania – the Philadelphia and Pittsburgh urban areas – and in a few counties in central andwestern New York state.In the New England region (see Figure 12), freight shipping establishments and facilities are concentratedaround Boston in an area that encompasses southeastern New Hampshire; central,southern, and eastern Massachusetts; Rhode Island; and most of Connecticut. The concentrationof shipping establishments and facilities decreases to the west and the north of the region. However,areas of high concentration also exist in southern Vermont, in western Massachusetts, andin Maine along I-95.In the New York/New Jersey metropolitan region (see Figure 13), the highest densities of shippingestablishments and facilities occur in eastern New York state, most of New Jersey, and easternPennsylvania. Areas with lower, but still significant, concentrations are found across Pennsylvaniaand in western New York state.Freight shipping establishments in the mid-Atlantic region are concentrated in northern Delaware(see Figure 14). This reflects the high concentration of chemical plants in the Wilmington areaOther areas with significant shipping establishment density are found in northern Virginia andMaryland.2 Because manufacturing establishment data were not obtained for counties outside the I-95 study area boundary, thenumber of shipping establishments in western Pennsylvania, western Virginia, and West Virginia may beunderrepresented.Page 37

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3.2.2 Commercial Vehicle VolumesThe heaviest volumes of commercial vehicle traffic in the study area are carried by a small numberof interstate highways. I-95 clearly is the dominant North-South route for commercial vehicletraffic. I-81 – running from the Canadian border through New York, Pennsylvania, Maryland, andVirginia – also carries heavy North-South commercial vehicle volumes. For East-West commercialvehicle traffic, the dominant routes are I-90, I-80, and I-76. I-90 originates in Boston and runsthrough Albany, Buffalo, and Erie (Pennsylvania); I-80 originates in northern New Jersey and travelsthrough northern Pennsylvania; I-76 originates in Philadelphia and travels the southern tier ofPennsylvania through Pittsburgh.Commercial vehicle traffic within the corridor is heaviest along I-95 from Virginia to southernConnecticut and in Massachusetts; on I-76 and I-78 in Pennsylvania; and on parts of I-90 in NewYork and Pennsylvania (see Figure 15).In New England, sections of I-95 and I-84 carry the heaviest commercial vehicle volumes (seeFigure 16). The high-volume sections of I-95 and I-84 in Connecticut reflect travel to and from thelarge New York/New Jersey metropolitan region to the south. The high volumes along I-95 inMassachusetts reflect both freight imports into Massachusetts and freight movements within theBoston metropolitan area.Commercial vehicle volumes in the New York/New Jersey metropolitan area are heaviest on I-95,I-78, and I-76 (see Figure 17). In “upstate” New York, I-90 also carries heavy commercial vehiclevolumes. In the mid-Atlantic region (see Figure 18), I-95 is the major commercial vehicle artery.3.3 MOTOR CARRIER ROUTING AND DISPATCHING OPERATIONS3.3.1 Routing and Dispatching Decision FactorsThe factors influencing motor carrier routing and dispatching decisions vary widely across carriers.Table 7 lists the factors identified as important to the 11 interviewed carriers. Detailed descriptionsof each carrier’s operations are provided in Appendix G, along with their respective routingand dispatching decision wheels.3.3.2 Interest in Traveler InformationOnly two of the 11 carriers interviewed indicated that they would not be interested in receivingtraveler information. Three carriers already have begun to integrate real-time traveler informationPage 42

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Figure 18Page 46

Table 7Page 47

into their routing and dispatching operations. Representatives from these companies indicatedthat this information has enabled their dispatchers to predict pickup and delivery times more accuratelyand to manage their fleet operations more efficiently.3.3.3 Use of Fleet Management TechnologiesThere are five basic types of fleet management technologies and services: communicationstechnology (such as cellular telephones), routing and dispatching software, traveler informationservices, onboard computers (OBCs), and automatic vehicle location technology. Each of thesetechnologies or services is designed to meet a specific objective of the carrier, such as maintainingcontact with drivers while in transit. The fleet management capabilities of the interviewedfleets are summarized in Figure 19. Key trends that emerged from the motor carrier interviewsincluded the following:♦Communications technology is the most widely adopted fleet management technologyamong the interviewed fleets, with seven companies reporting the use of this technology.These seven companies found that the technologies allow them to track vehicleprogress, communicate directions or schedule changes to drivers, and are beneficialin an emergency situation (such as when a vehicle has a mechanical breakdown).♦Most carriers rely on manual routing and dispatching; only three carriers reported theuse of automated routing and dispatching software, while a fourth interviewee plans tofully automate its routing and dispatching process and is developing its own routingand dispatching software.♦Three of the interviewed motor carriers use advanced traveler information services,and integrate this traveler information into their routing and dispatching operations.♦Very few motor carriers are using OBCs – only two of the carriers interviewed useOBCs in their vehicles to monitor driver performance. Most of the interviewed companieshave explored or experimented with OBCs, but were concerned that OBCswere too expensive or provided functions that exceeded their needs.♦None of the carriers interviewed are using automatic vehicle location technology.Page 48

Figure 19Page 49

3.4 USER NEEDS AND MARKETABILITYCompleted surveys were received from 74 carriers. Each survey included a set of six differentchoice experiments, for a total of 444 possible choice exercises. Not all carriers completed all oftheir choice experiments, and several carriers completed some or all of their choice experimentsincorrectly, as follows:♦A total of 237 of the 444 choice experiments were completed correctly.♦In 82 experiments, the carriers mixed the two options, building a preferred option fromthe two available ATIS packages.♦No choice was made between alternatives in 125 of the experiments; these choiceexercises could not be included in the analysis.Two types of statistical models – binary choice and log of the odds – were used to analyze thecarrier responses to the choice exercises. Together, these models enable an understanding ofthe attributes that are most desired by carriers and the likelihood of an ATIS purchase by particularcarriers. Detailed explanations of these models and their application to the choice exercise areprovided in Appendix H.The findings regarding carriers’ preferences for an ATIS are summarized for each service attributein Table 8.Analysis of the choice exercises also revealed that carriers are more likely to purchase ATIS ifthey operate a large fleet of trucks or have significant operations in the I-95 Corridor, and currentlyare using advanced technologies in their routing and dispatching operations. Carriers who areless likely to purchase ATIS include carriers with many contract drivers, carriers who operate multipleterminals, and carriers with fleets of vehicles that operate at a distance of more than 200miles from their base of operations.Page 50

Table 8Page 51

4.0 CONCLUSIONSMotor carrier operations are driven by the needs of their customers. The emergence of just-intimemanufacturing and inventory systems, plus the desire to be competitive with respect to customerservice, drives carriers to reduce delivery time and to improve the information provided tocustomers on the status of a particular shipment. These pressures are compelling motor carriersto explore opportunities for integrating advanced fleet management and information technologiesinto their daily operations. Such technologies enable carriers to collect and organize vast quantitiesof information on their fleet, and to make more effective and efficient decisions.However, ITS technologies vary in their applicability to different truck fleets, depending on theiroperating characteristics. The most significant factor is the kind of products a fleet most oftencarries. Fleet operations also vary depending on whether they are local, regional, or national inscope. These differences influence the choices made by fleet managers and truck ownersregarding investment in ITS systems. In addition, fleet size has a major influence on a carrier’spropensity to invest in ITS systems. Fleets with more variable routes and more highly timesensitiveschedules are more likely to invest in tracking and communications technologies.Motor carriers have been slow to adopt fleet management technologies, primarily due to their highcost and uncertain benefits. It is clear, however, that carriers are seeking opportunities to automatefleet management functions, and to provide real-time information to their customers. Asfleet management technology continues to improve and costs continue to decline, more carrierswill begin to adopt these technologies.4.1 POTENTIAL CARRIER INTEREST IN ATISThere appears to be a great deal of interest among carriers in a variety of industry segments inreceiving real-time congestion, incident, and construction information. This information will enablecarriers to provide more accurate estimates of shipment arrival times to customers. However, theinformation must be tailored to the needs of commercial motor vehicles, and to specific fleets inparticular. The early adopters of ATIS are likely to be regional fleet operators with a large numberof power units, who are heavy users of the I-95 Corridor. In addition, companies already usingadvanced technologies are more likely to purchase ATIS.It appears that potential ATIS users will be served best if costs (particularly monthly servicecharges) are low, and both drivers and dispatchers are given access to the information. InPage 53

addition, the models imply that operators want to receive updated information every four hours,and that the service coverage should be regional.4.2 POTENTIAL MARKET AREAS FOR ATIS OPERATIONAL TESTThe distribution of trucking activity centers and the patterns of commercial vehicle volumes on theInterstates within the study area suggest four potential market areas for CVO tests, programs, andtechnologies. The market areas correspond approximately to the following regions: CorridorNorth (extending from the New York City metropolitan area up through New England and includingeastern New York state); Corridor South (extending from the New York City metropolitan areathrough New Jersey, Delaware, Maryland, and Virginia); and Corridor Central (extending from theNew York City metropolitan area through Pennsylvania); as well as the entire I-95 Corridor.4.3 SCOPE AND MODE OF INFORMATION DISSEMINATIONThe traffic pattern indicates that there are heavy commercial vehicle volumes along the majorinterstates that connect the corridor to the rest of the United States. This reinforces the idea thatmany of the trucks operating in the corridor are based outside of the corridor and operate withinthe corridor only occasionally. However, the need of these carriers for traveler informationremains strong, particularly when they are operating on unfamiliar terrain.The distribution of both truck traffic and activity centers points to a small number of critical“chokepoints” for trucking activity in the corridor. Foremost is the metropolitan New York Cityarea, with its large population base, concentration of industry, and confluence of several Interstatehighways. Other chokepoints include the Boston and Philadelphia metropolitan areas. Similarly,commercial traffic is concentrated on a small number of interstate highways, including I-95 fromVirginia to Connecticut and Interstates 81, 90, 80, and 76. Traffic or weather problems in theseareas or along these routes have the potential to create major delays for large numbers of vehicles.Communication about incidents must be disseminated widely, promptly, and accurately toprevent vehicles from becoming caught in the queues, if possible.The relatively small number of interstates means that trucks have few alternate routes available inthe corridor. In view of the limited number of available alternatives, information affecting commercialvehicle routing and dispatching decisions must be available before trucks reach the corridor,so that alternate routes may be chosen or schedules altered.Page 54

Some of the traditional modes of disseminating information to travelers, such as variable messagesigns (VMS) or highway advisory radio (HAR) are inadequate for supporting motor carrierrouting and dispatching decisions. These technologies must be made to work in harmony withother ATIS technologies, such as on-line information services, to be effective traffic managementtools.Page 55

5.0 RECOMMENDATIONSBased on the results of the research and analysis done for Tasks 1 and 2, it was recommendedthat the development of the ATIS operational test consider the following recommendations:5.1 TARGET MARKET FOR ATIS OPERATIONAL TESTFor the field operational test, ATIS should be marketed to larger regional carriers who haveextensive operations along the I-95 Corridor, but do not operate a significant portion of their fleetfar from their bases of operations. These carriers appear to be a promising market for an I-95ATIS. The I-95 Corridor Coalition should work with industry associations to identify qualified candidatesto participate in the ATIS operational test. The initial effort should focus on carriers whoalready are using advanced communications systems.5.2 MARKET AREAS FOR ATIS OPERATIONAL TESTThe operational test for CVO services in the I-95 Corridor should reflect the regional nature ofmotor vehicle operations. For example, consideration should be given to developing differentprograms for each of the corridor sub-regions, as well as for the corridor as a whole.5.3 COMPONENTS OF ATIS OPERATIONAL TESTAn ATIS operational test should incorporate the following service and cost attributes:♦Information Recipient. Traveler information should be delivered to both the driverand the dispatcher.♦Geographic Range. Information should be provided at the regional level (e.g., forthe New England region).♦Database Update Frequency. Information contained in the database must be current.For example, if there is an incident, the database must be updated as soon asthe incident is cleared.Page 57

♦Output Media. Voice or electronic messages are the preferred options. This suggeststhat motor carriers are using a variety of technologies in their routing and dispatchingoperations, and that no single technology will meet the needs of all carriers.♦User Query Capability. The service should notify users automatically – in otherwords, users should not have to contact the service to obtain information.♦Message Broadcast Frequency. The service should provide incident/exceptionreports to users.♦Equipment/Service Costs. Carriers are not willing to pay much to participate in thisservice initially because it is an unproven service with unclear benefits. Carriersshould be able to participate in a demonstration of this service at no cost. Afterdetermining the value of and market for this service, user fees may be appropriate.In addition, the service must be designed to meet the operational characteristics (e.g., range ofoperation, etc.) of its users. By enabling the service users to select those variables which meeteach fleet’s operational profile, the service is more likely to add value to a carrier’s routing anddispatching operations. This could be accomplished by asking each participant to complete a“traveler information profile,” which would enable the development of individually tailored productswith the service characteristics requested by each carrier. Carriers should have the flexibility toupdate this profile over the course of the operational test.5.4 SCOPE OF ATIS OPERATIONAL TEST♦The dissemination of information on congestion, incidents, and weather in the operationaltest should focus on the regional chokepoints, such as New York City, and thecritical freight lanes, such as I-95 itself.♦Information on congestion, accidents, weather, and road construction should beavailable to commercial vehicles before they reach the actual congestion. Trafficcondition information on potential alternate routes also should be communicated sothat motor carriers can make educated vehicle routing decisions.♦The operational test should transmit traveler information in a way that will provide carriersand drivers with sufficient lead time to make effective routing and dispatchingPage 58

decisions. A combination of technologies, which may include VMS and HAR as wellas on-line information services, may be necessary to develop an effective ATIS programthat provides carriers and drivers with sufficient lead time to make effectiverouting and dispatching decisions. This may require broadcasting information on corridorconditions over a geographic range that extends beyond the corridor’s boundaries.This also will facilitate meeting the information needs of carriers with onlyoccasional corridor operations.♦Traveler information “clearinghouses” should be established for the major metropolitanareas throughout the I-95 Corridor so that the information can be tailored to anindividual carrier’s operating areas, which tend to focus around the major cities in thecorridor. Each of these clearinghouses could collect, organize, and disseminate travelerinformation for a specific metropolitan/congested area.♦To ensure that a wide range of carriers can take advantage of advanced travelerinformation in an industry where the level and application of technology varies significantly,these services may need to be disseminated through a variety of media, suchas cellular phones, pagers, and on-line services.♦Fleet management technologies should be examined closely to identify ways in whichthey may be used as platforms for the integration of traveler information services. Forexample, opportunities should be explored for dispatchers to communicate real-timetraveler information to drivers using technologies such as cellular phones.♦The special needs of motorcoach operators should be considered in the design ofadvanced traveler information services. Traditional CVO programs tend to bedesigned to meet the needs of truck operators, but it is important to remember thatbuses comprise a significant portion of the commercial vehicles operating today.These companies, like their trucking counterparts, constantly seek opportunities toimprove the productivity and safety of their operations.5.5 FUTURE ACTIVITIESAfter the conclusion of the field operational test, the Corridor Coalition should evaluate the effectivenessof the service to determine whether it met the needs of the target market, and whether aviable commercial or nonprofit market for such a service exists. If the test indicates that the useof an ATIS provides benefits for the participating carriers, the I-95 Corridor Coalition shouldPage 59

consider developing plans to offer this service to a wider motor carrier population. At that time,the Coalition also should determine how the service may be modified to meet the needs of motorcarriers with operational characteristics different from those of the original participants – in otherwords, what modifications are necessary to meet the needs of carriers with small fleets, corridorwideoperations, etc.Page 60

6.0 AUTOMATED TRAVELER INFORMATION SYSTEMSOPERATIONAL TESTThe objective of the CVO Automated Traveler Information Systems (ATIS) field operational test isto test the feasibility of enhancing motor carrier safety and operational efficiency by providinginformation to improve carrier routing and dispatching. It is intended to serve as a transitionbetween research and development and full scale deployment of ITS traveler information technologyby allowing for evaluation of the system prototype under real operating conditions. 1 Thedescription provided here is included in the I-95 Corridor Coalition’s Business Plan.The project will test an automated traveler information system (ATIS) for commercial vehicle dispatchersand drivers. The system will provide them with the information on congestion, incidents,weather, and routing that is necessary to meet the demands of shippers and receivers in theCorridor for fast, timely, and reliable delivery of goods and services. Research has found that carriersare investing in technology to improve their routing and dispatching, but do not have accessto good information on regional highway and travel conditions. The information provided by metropolitantraffic services often is too general or too limited in geographic scope to be useful forwide-ranging carrier operations.The project will develop a public-private partnership (TruckDesk) that will act as a value-addedrepackager of travel information for motor carriers. TruckDesk will gather information on highwayconditions and travel through the Coalition’s Information Exchange Network (IEN), TRANSCOM,CHART, SmarTraveler, state agencies, and private sources, including the motor carrier industry;organize the information; and make the information available to dispatchers and drivers. Theproject will test a range of delivery technologies (i.e., pager, fax, Internet, World Wide Web, dialupservice, satellite communications, wireless communications, etc.) to determine thetechnologies that are best suited to specific motor carrier markets. The project also willinvestigate the market for subscription and pay-by-use information services. The project willincorporate the activities proposed earlier under the CVO ATIS Immediate Deployment Action(IDA).1 I-95 Corridor Coalition Business Plan 1996 Update, I-95 Corridor Coalition, June 1996, p. 48.Page 61

TruckDesk will be deployed Corridor-wide. It is anticipated that information services will beorganized in three regions: New England, New York Metro Area (NY, NJ, and PA), and DelmarvaArea (DE, MD, VA).The ATIS operational test is a two-year test beginning in 1996, and expecting completion in 1998.The costs of the operational test will require $750,000 in Coalition funds and up to $250,000 ofprivate sector funds through in-kind contributions and cost sharing.Page 62

TABLE 1COMMODITIES AND INDUSTRIES ANALYZEDCommodities• Liquid Petroleum (including, for example, gasoline, diesel fuel,heating oil, and aviation fuel, but excluding paving and roofing productssuch as tar): approximately 31,000 trucks selected for analysis.• Building Materials (including, for example, sand, gravel, concrete andflat glass, but excluding lumber): approximately 120,300 trucksselected for analysis.• Processed Foods (including, for example, canned foods, frozenfoods, prepared meats, beverages and dairy products, but excludinggrain, produce, livestock and raw milk): approximately 57,900 trucksselected for analysis.• Moving of Household and Office Goods (including, for example,furniture and office equipment): approximately 9,600 trucks selectedfor analysis.• General Freight (including mixed cargo): Approximately 45,700 trucksselected for analysis.• Refuse (including, for example, scrap, garbage, septic tank waste):approximately 31,500 trucks selected for analysis.• Fresh Farm Products (including, for example, raw milk and produce).Approximately 43,000 trucks selected for analysis.Industries• Manufacturing, Refining, and Processing: approximately 37,100trucks selected for analysis.Number of Trucksin Analysis31,000120,30057,9009,60045,70031,50043,00037,100• Wholesale Trade: approximately 70,600 trucks selected for analysis. 70,600• Retail Trade: approximately 63,200 trucks selected for analysis. 63,200• Construction: approximately 107,900 trucks selected for analysis. 107,900• Utilities: approximately 23,700 trucks selected for analysis. 23,700• Agriculture: approximately 58,000 trucks selected for analysis. 58,000Page 4

TABLE 2SERVICE ATTRIBUTE PREFERENCESService AttributesAttribute OptionsService PreferencesBased on ChoiceExercise FindingsRecipient of InformationGeographic CoverageDatabase Update FrequencyOutput MediaUser Query Capability- Driver- Driver and dispatcher- Both driver and dispatcher- Corridor-wide- Regional- Local Metropolitan area- Every 15 minutes- Every 30 minutes- Every hour- Paper copy- Voice- Electronic- “Yes” meaning user wouldhave access to theinformation- “No” meaning that theservice provider would haveto contact the userPreferred option was tohave information deliveredto both the driver anddispatcher.Preferred option wasregional, followed bycorridor-wide and local.Carriers preferred less frequentdatabase updates butmay have misunderstoodthe variable definition.Preference was voice orelectronic; limited interest inpaper output.Preference was for theservice provider to contactthe user.Monthly Service Charge - $25.00- $75.00- No chargeOne-time Equipment Costs - $50.00- $200.00- $2,000.00- No chargeCarriers are not willing topay much for this serviceinitially. Carriers are morewilling to pay equipmentcosts.Carriers revealed they aremore willing to payequipment costs thanmonthly service charges.System Initiated Messages- None (messages initiated bythe user)- Condition reports generatedevery hour- Condition reports generatedevery four hours- Incident/exception reportsPreference was for systeminitiatedmessages everyfour hours; however,respondents may havemisunderstood this servicevariable.Page 9

TABLE 3COMMODITIES AND INDUSTRIES ANALYZEDCommodities• Liquid Petroleum (including, for example, gasoline, diesel fuel,heating oil, and aviation fuel, but excluding paving and roofing productssuch as tar): approximately 31,000 trucks selected for analysis.• Building Materials (including, for example, sand, gravel, concrete andflat glass, but excluding lumber): approximately 120,300 trucksselected for analysis.• Processed Foods (including, for example, canned foods, frozenfoods, prepared meats, beverages and dairy products, but excludinggrain, produce, livestock and raw milk): approximately 57,900 trucksselected for analysis.• Moving of Household and Office Goods (including, for example,furniture and office equipment): approximately 9,600 trucks selectedfor analysis.• General Freight (including mixed cargo): Approximately 45,700 trucksselected for analysis.• Refuse (including, for example, scrap, garbage, septic tank waste):approximately 31,500 trucks selected for analysis.• Fresh Farm Products (including, for example, raw milk and produce).Approximately 43,000 trucks selected for analysis.Industries• Manufacturing, Refining, and Processing: approximately 37,100trucks selected for analysis.Number of Trucksin Analysis31,000120,30057,9009,60045,70031,50043,00037,100• Wholesale Trade: approximately 70,600 trucks selected for analysis. 70,600• Retail Trade: approximately 63,200 trucks selected for analysis. 63,200• Construction: approximately 107,900 trucks selected for analysis. 107,900• Utilities: approximately 23,700 trucks selected for analysis. 23,700• Agriculture: approximately 58,000 trucks selected for analysis. 58,000Page 23

TABLE 4FREIGHT ACTIVITY CENTER DATA SOURCESSourceFacility Type Primary Data Source ProviderManufacturing Freight Locator Reebie AssociatesWholesale Census of Wholesale trade U.S. Department of Commerce,Bureau of the CensusAirportsNorth American Airport TrafficReportAirports Council InternationalMarine Ports Principal Ports database U.S. DOT Bureau ofTransportation StatisticsIntermodal Highwayand Rail TerminalsMajor U.S. Ports SummarydatabaseTrailer on Flat Car (TOFC)databaseU.S. DOT Bureau ofTransportation StatisticsU.S. DOT Bureau ofTransportation StatisticsPage 27

TABLE 5I-95 CORRIDOR COMMERCIAL VEHICLE ACTIVITY CENTERS DATABASE:DATA COVERAGETypes of ActivityCentersData Items IncludedNumber ofNumber ofEstablishments/Facilities EmployeesTotal Freight TonnageManufacturing • • •Wholesale • •Airports • •Marine Ports • •Intermodal•Page 28

TABLE 6CHOICE EXERCISE ATTRIBUTESAttribute Attribute Description Attribute OptionsRecipient of InformationGeographic CoverageDatabase Update FrequencyOutput MediaUser Query CapabilityMonthly Service ChargeOne-time Equipment CostsSystem Initiated MessagesThe individual or group ofindividuals who wouldreceive the informationThe area that would becovered for the collectionand reporting of informationThe frequency with whichthe traffic informationincluded in the databasewould be updatedThe means by which thetraffic information would bedelivered to recipientsWhether or not the userwould be able to initiateaccess to the database forretrieval of specific trafficinformationThis represented therecurring monthly chargefor the service, and wereexpressed per recipientThe start-up costs thatwould be required to gainaccess to the informationserviceThe type of information thatwould be provided by thesystem automatically- Driver- Driver and dispatcher- Both driver and dispatcher- Corridor-wide- Region-specific- Local Metropolitan area- Every 15 minutes- Every 30 minutes- Every hour- Paper copy- Voice- Electronic- “Yes” meaning user wouldhave access to theinformation- “No” meaning that theservice provider would haveto contact the user- $25.00- $75.00- No charge- $50.00- $200.00- $2,000.00- No charge- None (messages initiated bythe user)- Condition reports generatedevery hour- Condition reports generatedevery four hours- Incident/exception reportsPage 33

TABLE 7FACTORS AFFECTING ROUTING AND DISPATCHING DECISIONSOF SURVEYED MOTOR CARRIERSFactors Identified by Threeor More Motor CarriersEquipment availabilityDriver availabilityOrigin and destination ofload/charterNumber of overnightsFactors Identified by TwoMotor CarriersFreight volume (estimated andactual)Size of load (weight anddimensional)TRANSCOM advisoriesScheduled arrival/departuretimesFactors Identified by SingleMotor CarriersSchedule adherenceProjected demand for eachterminalEstimates of demand for fixedcustomersDock availability for bulkshipmentsTrip mileage Demand for charter/tour work “Preferred” or “non-preferred”customersSpecial delivery requests fromcustomersOpportunity to consolidateloadsDaily equipment required tomake fixed-route deliveriesNumber of hours required tomake fixed-route deliveriesDriver “away-time”Time sensitivity of shipmentMaintenance requirementsCustomer locationHAZMAT routingconsiderationsWeather informationType of equipment neededSpecial equipment requestsfor charterPage 47

TABLE 8SERVICE ATTRIBUTE PREFERENCESService AttributesAttribute OptionsService PreferencesBased on ChoiceExercise FindingsRecipient of InformationGeographic CoverageDatabase Update FrequencyOutput MediaUser Query Capability- Driver- Driver and dispatcher- Both driver and dispatcher- Corridor-wide- Regional- Local Metropolitan area- Every 15 minutes- Every 30 minutes- Every hour- Paper copy- Voice- Electronic- “Yes” meaning user wouldhave access to theinformation- “No” meaning that theservice provider would haveto contact the userPreferred option was tohave information deliveredto both the driver anddispatcher.Preferred option wasregional, followed bycorridor-wide and local.Carriers preferred less frequentdatabase updates butmay have misunderstoodthe variable definition.Preference was voice orelectronic; limited interest inpaper output.Preference was for theservice provider to contactthe user.Monthly Service Charge - $25.00- $75.00- No chargeOne-time Equipment Costs - $50.00- $200.00- $2,000.00- No chargeCarriers are not willing topay much for this serviceinitially. Carriers are morewilling to pay equipmentcosts.Carriers revealed they aremore willing to payequipment costs thanmonthly service charges.System Initiated Messages- None (messages initiated bythe user)- Condition reports generatedevery hour- Condition reports generatedevery four hours- Incident/exception reportsPreference was for systeminitiatedmessages everyfour hours; however,respondents may havemisunderstood this servicevariable.Page 51

APPENDIX BMOTOR CARRIER AND MOTORCOACH INTERVIEW GUIDESINTERVIEW QUESTIONS FOR MOTORCOACH OPERATORSI. STUDY/INTERVIEW OBJECTIVESGoals:♦Improve the efficiency and safety of commercial vehicle operations in the corridor♦Examine the potential for applying ITS technologies♦Design an ITS/CVO operational testGoals of Interview:♦To develop an understanding of your operation and, in particular, your routing anddispatching process♦To identify the technologies currently being used by motorcoach operators for routingand dispatching/communications♦To identify the key information that is used to make routing and dispatching decisions♦To discuss the additional information that you would like to have access to, and howyou would like to receive that information.♦What elements should be included in an ITS/CVO operational test?Page B-1

II. DEFINE FLEET OPERATION1. How many buses does your company operate in the I-95 corridor?2. What types of buses does your company operate?3. How many buses does your company own vs. lease?4. How many drivers does your company employ that operate buses in the corridor?5. What is the union status of your company?6. How many facilities do you operate in the corridor? Where are the major facilities located?7. Where are your busiest terminals in the corridor?8. What is the average length of a trip in the corridor?9. How many customers do you serve in a typical day?10. What are the performance standards that your company is subject to?11. What are the penalties associated with non-performance?12. How does your company market itself? What are your selling points?13. What operating or other productivity ratios does your company track?14. How are drivers compensated (e.g., per hour, load, etc.)?Page B-2

III. ROUTING/DISPATCHING DISCUSSION1. Where is routing and dispatching done (e.g., at a central location)?2. What are the critical elements involved in the routing and dispatching process?3. What type of information is being used for routing/dispatching?4. How is this information received or transmitted?5. How are unforeseen problems handled? For instance if a bus breaks down while in transit.6. Does the dispatcher maintain contact with drivers while they are in transit? If yes, what is thepurpose of this communication? What technology is currently being used for driver/dispatchercommunication?7. How time sensitive are your operations?8. What are the greatest day-to-day frustrations with respect to routing and dispatching?9. What technology is being used for routing and dispatching?10. What are the strengths and weaknesses of the technology?11. What impact has the technology had on fleet efficiency or operating cost savings?Page B-3

IV. FUTURE TECHNOLOGY AND INFORMATION NEEDS1. Do you anticipate any changes to the technology that your company is currently using?2. What impact will technology advances have on your company and your competitors?3. How will information needs change over the next few years (e.g., traffic information)?4. Would access to traffic information (e.g., congestion, incidents, etc.) benefit your operation5. In what format should this information be provided? How frequently should this information beprovided? What type of technology should be used to convey this information?6. What technologies or services would you like to see included in an ITS/CVO operational test?Page B-4

INTERVIEW QUESTIONS FOR MOTOR CARRIER OPERATORSI. STUDY/INTERVIEW OBJECTIVESGoals:♦Improve the efficiency and safety of commercial vehicle operations in the corridor♦Examine the potential for applying ITS technologies♦Design an ITS/CVO operational testGoals of Interview:♦To develop an understanding of your routing and dispatching process♦To identify the technologies currently being used by motor carriers for routing anddispatching/communications♦To identify the key information that is used to make routing and dispatching decisions♦To discuss the additional information that you would like to have access to, and howyou would like to receive that information.♦What elements should be included in an ITS/CVO operational test?II. DEFINE FLEET OPERATION1. What type(s) of products does your company transport?2. Provide a general description of the services that your company provides.3. Who are your customers - how many do you serve in a typical year?Page B-5

4. Where are your customers located?5. What are the performance standards that your company is subject to?6. What are the penalties associated with non-performance?7. How does your company market itself? What are your selling points?8. What operating or other productivity ratios does your company track?9. How are drivers compensated (e.g., per hour, load, etc.)?III. ROUTING/DISPATCHING DISCUSSION1. What are the critical elements involved in the routing and dispatching process?2. What type of information is being used for routing/dispatching?3. How is this information received or transmitted?4. How are unforeseen problems handled? For instance if a truck breaks down while moving aload?5. Does the dispatcher maintain contact with drivers while they are in transit? If yes, what is thepurpose of this communication? What technology is currently being used for driver/dispatchercommunication?Page B-6

6. How time sensitive are your operations (i.e., how much of a time window does a dispatcherhave to work with)?7. What are the greatest day-to-day frustrations with respect to routing and dispatching?8. What technology is being used for routing and dispatching?9. What are the strengths and weaknesses of the technology?10. What impact has the technology had on fleet efficiency or operating cost savings?IV. FUTURE TECHNOLOGY AND INFORMATION NEEDS1. Do you anticipate any changes to the technology that your company is currently using?2. What impact will technology advances have on your company and your competitors?3. How will information needs change over the next few years (e.g., traffic information, locationof shipments, etc.)?4. Would access to traffic information (e.g., congestion, incidents, etc.) benefit your operation5. In what format should this information be provided? How frequently should this information beprovided? What type of technology should be used to convey this information?6. What technologies or services would you like to see included in an ITS/CVO operational test?Page B-7

AcronymsAcronymPhraseInitialReferenceAVL Automatic Vehicle Location Page C-7AVM Automatic Vehicle Monitoring Page C-11CDPD Cellular Digital Packet Data Page C-25CMRS Commercial Mobile Radio Service Page C-24DGPS Differential Global Positioning System Page C-18DSRC Dedicated Short-Range Communication Page C-19ESMR Enhanced Specialized Mobile Radio Page C-13ETA Estimated Time of Arrival Page C-27GPS Global Positioning System Page C-11ITS Intelligent Transportation Systems Page C-7LEO Lower-Earth Orbit Page C-11LMS Location and Monitoring Service Page C-13LORAN-C LOng-RAnge Navigation Page C-8LTL Less Than Truckload Page C-11MEO Mid-Earth Orbit Page C-13MSS Mobile Satellite Services Page C-8NVNG Non-Voice Non-Geosynchronous Page C-14OBCs Onboard Computers Page C-7PCS Personal Communication Service Page C-34SMR Specialized Mobile Radio Page C-8TDOA Time-Difference-of-Arrival Page C-13VHF Very High Frequency Page C-14Page C-6

APPENDIX CTable of Contents1.0 INTRODUCTION ......................................................................................................... C-71.1 Introduction .......................................................................................................... C-71.2 Fleet Management Technologies ........................................................................ C-71.3 Resource Guide Organization.............................................................................. C-102.0 AUTOMATIC VEHICLE LOCATION ........................................................................... C-112.1 Overview.............................................................................................................. C-11Definition.............................................................................................................. C-11How it Works ....................................................................................................... C-11Benefits and Drawbacks ...................................................................................... C-12Market.................................................................................................................. C-12Cost...................................................................................................................... C-12Vendors................................................................................................................ C-12Outlook ................................................................................................................ C-122.2 Satellite AVL Systems.......................................................................................... C-13Definition.............................................................................................................. C-13How it Works ....................................................................................................... C-13Benefits and Drawbacks ...................................................................................... C-15Market.................................................................................................................. C-17Cost...................................................................................................................... C-17Vendors................................................................................................................ C-17Outlook ................................................................................................................ C-18Page C-1

APPENDIX CTable of Contents (continued)2.0 AUTOMATIC VEHICLE LOCATION (continued)2.3 Ground-Based Infrastructure AVL Systems......................................................... C-19Definition.............................................................................................................. C-19How it Works ....................................................................................................... C-19Benefits and Drawbacks ...................................................................................... C-21Market.................................................................................................................. C-22Cost...................................................................................................................... C-22Vendors................................................................................................................ C-24Outlook ................................................................................................................ C-243.0 MOBILE COMMUNICATION SYSTEMS .................................................................... C-263.1 Overview.............................................................................................................. C-26Definition.............................................................................................................. C-26How it Works ....................................................................................................... C-26Benefits and Drawbacks ...................................................................................... C-26Market.................................................................................................................. C-27Cost...................................................................................................................... C-28Vendors................................................................................................................ C-28Outlook ................................................................................................................ C-283.2 Mobile Satellite Services...................................................................................... C-28Definition.............................................................................................................. C-28How it Works ....................................................................................................... C-28Benefits and Drawbacks ...................................................................................... C-29Market.................................................................................................................. C-29Cost...................................................................................................................... C-30Vendors................................................................................................................ C-30Outlook ................................................................................................................ C-30Page C-2

APPENDIX CTable of Contents (continued)3.0 MOBILE COMMUNICATION SYSTEMS (continued)3.3 Specialized Mobile Radio Network ...................................................................... C-31Definition.............................................................................................................. C-31How it Works ....................................................................................................... C-31Benefits and Drawbacks ...................................................................................... C-31Market.................................................................................................................. C-31Cost...................................................................................................................... C-32Vendors................................................................................................................ C-32Outlook ................................................................................................................ C-323.4 Cellular Phone Systems....................................................................................... C-32Definition.............................................................................................................. C-32How it Works ....................................................................................................... C-33Benefits and Drawbacks ...................................................................................... C-33Market.................................................................................................................. C-33Cost...................................................................................................................... C-33Vendors................................................................................................................ C-33Outlook ................................................................................................................ C-343.5 Paging Systems ................................................................................................... C-34Definition.............................................................................................................. C-34How it Works ....................................................................................................... C-35Benefits and Drawbacks ...................................................................................... C-35Market.................................................................................................................. C-35Cost...................................................................................................................... C-35Vendors................................................................................................................ C-35Outlook ................................................................................................................ C-36Page C-3

APPENDIX CTable of Contents (continued)4.0 ON-BOARD COMPUTERS ......................................................................................... C-37Definition.............................................................................................................. C-37How it Works ....................................................................................................... C-37Benefits and Drawbacks ...................................................................................... C-37Market.................................................................................................................. C-38Cost...................................................................................................................... C-38Vendors................................................................................................................ C-38Outlook ................................................................................................................ C-385.0 ROUTING AND DISPATCHING SOFTWARE ............................................................ C-40Definition.............................................................................................................. C-40How it Works ....................................................................................................... C-40Benefits and Drawbacks ...................................................................................... C-40Market.................................................................................................................. C-41Cost...................................................................................................................... C-41Vendors................................................................................................................ C-41Outlook ................................................................................................................ C-426.0 SUMMARY .................................................................................................................. C-436.1 Summary of Benefits, Drawbacks, and Costs ..................................................... C-436.2 Summary Outlook ................................................................................................ C-43Page C-4

APPENDIX CList of Tables1. Fleet Management Technologies................................................................................. C-92. Summary of Satellite AVL Technologies...................................................................... C-163. Summary of Ground-Based Infrastructure AVL Technologies..................................... C-234. Summary of Fleet Management Technologies: Benefits and Drawbacks .................. C-445. Fleet Management Technologies: Major Vendors and Costs..................................... C-45Page C-5

1.0 OVERVIEW OF ITS TECHNOLOGIESFOR FLEET MANAGEMENT1.1 INTRODUCTIONIn today’s increasingly competitive economic environment, effective management of commercialvehicle fleets is important for all types of carriers and for the trucking industry as a whole. Tomeet fleet management needs, carriers increasingly are turning to intelligent transportationsystems (ITS) technologies. ITS technologies can enhance the competitive advantage of theindustry and of individual trucking companies by improving the efficiency of goods movementsthrough real-time information exchange and communications, and by providing customers withup-to-the-minute information regarding shipments and deliveries.This resource guide provides a summary of the technologies currently used for fleet management.Four broad categories of technology along with their benefits and drawbacks, and current vendorsand costs, are described in this introduction. In the body of the report, more detailed fact sheetsare provided, which include information about each technology.1.2 FLEET MANAGEMENT TECHNOLOGIESITS technologies for fleet management can be grouped into four major categories: AutomaticVehicle Location (AVL) Systems, Mobile Communications Systems, On-Board Computers(OBCs), and Routing and Dispatching Software.♦Automatic Vehicle Location (AVL) Systems. AVL systems make it possible topinpoint the location of a vehicle using radio navigation systems. There are two basictypes of AVL systems: satellite and ground-based infrastructure. When combinedwith on-board computers, routing and dispatching software, and communicationsystems, AVL systems allow drivers, dispatchers, shippers and receivers to track atruck from pickup to delivery, to facilitate “just-in-time” deliveries, to coordinateintermodal shipments, and to provide improved customer services. 1 AVL systems areused most often by carriers that give a high priority to continuously tracking shipmentsand projecting accurate delivery times. 2♦Mobile Communications Systems. Mobile communication systems provide twowaydata or voice communication between drivers and dispatchers, andPage C-7

communication between carriers and other parties such as intermodal facilityoperators, regulatory institutions, clients and intermodal carriers. Four technologiesprovide two-way mobile communications: mobile satellite services (MSS), specializedmobile radio (SMR) systems, cellular systems, and paging systems. Thesetechnologies can be integrated with a company’s computer operations and vehiclelocation systems to allow for the exchange of real-time routing, dispatching, pick-upand delivery information. The current primary markets for mobile communicationssystems are less-than-truckload fleets, just-in-time delivery operations, and quickresponseretail ordering companies. 3♦On-Board Computers. OBCs are used to record business transactions, driver logs,vehicle location information, and mechanic logs. This information is downloaded fromthe OBC to the dispatch center using mobile communication systems. OBCs oftenare used in conjunction with routing and dispatching systems as well as withmaintenance-scheduling software. Long-haul truckload carriers, just-in-time deliveryservices, and couriers who can use OBCs to improve data entry, optimize routing,and provide shipment monitoring services to clients, represent the primary marketsfor these technologies. 4♦Routing and Dispatching Software. Routing and dispatching software helpscarriers to select routes that minimize the time and cost of scheduling trucks, andhelps assign freight and drivers to trucks. More sophisticated systems also makerouting decisions based on real-time truck locations, generate route maps, estimatedelivery times and distances, and help improve cost estimates. To realize their fullpotential, these systems must be integrated with OBCs, mobile communicationsystems, and AVL systems. The primary users of routing and dispatching softwareare carriers such as package delivery fleets and less-than-truckload (LTL) operatorsthat assign a high priority to maximizing equipment utilization and improving overallcost-effectiveness. 5The ITS technologies included within each category are listed in Table 1.Page C-8

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1.3 RESOURCE GUIDE ORGANIZATIONThe sections that follow provide a detailed fact sheet on each of the currently available ITS fleetmanagement technologies. For each technology, the following information is provided:♦♦♦♦♦♦♦Definition;How it Works;Benefits and Drawbacks;Market;Cost;Vendors; andOutlook.Section 2.0 discusses AVL systems. Mobile communication systems are covered in Section 3.0.Sections 4.0 and 5.0 discuss OBCs and routing and dispatching, respectively. The benefits,drawbacks, costs, and outlook of the technologies covered in this resource guide are summarizedin Section 6.0.Page C-10

2.0 AUTOMATIC VEHICLE LOCATION2.1 OVERVIEWDefinitionAutomatic Vehicle Location (AVL) systems make it possible to pinpoint the location of a vehicleusing satellite or ground-based technologies. When combined with on-board computers androuting and dispatching software, these systems allow drivers, dispatchers, shippers andreceivers to track a truck from pickup to delivery, to perform “just-in-time” deliveries, to coordinateintermodal shipments, and to provide improved customer service. Law enforcement can use AVLtechnologies to track lost or stolen fleet vehicles and for emergency notification. 6How it WorksThere are two basic types of AVL systems:♦Satellite AVL systems – These include global positioning systems, geostationarysatellites, and lower-earth orbit satellites; and♦Ground-based infrastructure AVL systems – These include automatic vehiclemonitoring band systems, dead reckoning, long-range navigational systems, andsignposts.A basic AVL system calculates vehicle location with accuracies ranging from 100 feet to 3,000feet. Basic systems also interface with software, with two-way communication between driversand dispatchers, and with on-board computers that decipher AVL transmissions. Moresophisticated AVL systems work in conjunction with other ITS technologies to provide servicesthat include stolen vehicle recovery, road assistance, real-time routing and dispatching, and logsof truck routes that help improve routing and dispatching. 7,8The various satellite AVL and ground-based systems are described below in detail. (See Tables 2and 3 for summaries of satellite and ground-based infrastructure AVL technologies.)Benefits and DrawbacksAccording to a 1992 survey by the American Trucking Association (ATA) Foundation, whichinterviewed approximately 500 carriers, AVL users generally are pleased with the capabilities andPage C-11

performance of AVL systems. 9 A second ATA survey conducted in 1996, which interviewedapproximately 700 carriers, indicated that the use of AVL systems is most prevalent among motorcarriers with nationwide operations, and among large carriers (e.g., 100 power units or more). 10 Incomparing the two basic types of AVL systems, however, satellite systems are less effective inurban areas, because their radio-navigation signals are reflected and distorted by buildings,bridges, power lines, and other structures. The greater reliability of ground-based systems inurban areas may make this technology more attractive to short-haul motor carriers. In contrast tosatellite systems, ground-based systems require a network of antennas to determine vehiclelocations. Because sufficient antenna coverage does not exist throughout the United States,these systems fall short as a vehicle location determination system for long-haul trucking.Satellite systems, which have global coverage, can be used more effectively by long-haul carriers.MarketAbout eight percent of the carriers interviewed in the 1996 ATA Foundation survey reported usingAVL systems. 11 Large, national, and for-hire truckload fleets were the major users of thistechnology. The largest market for AVL services among metropolitan area fleets are transit,ambulance, and courier companies. 12 In general, carriers that are most concerned with trackingshipments and making accurate estimates of delivery times are more apt to employ AVLsystems. 13CostCapital costs for AVL systems range from $100 to $3,000 per vehicle.VendorsListings of vendors for satellite and ground-infrastructure AVL are included in Sections 2.2 and2.3, respectively.OutlookAVL systems are expected to become more widespread as a result of the followingdevelopments:♦An expected decline in AVL system prices;♦ The establishment of a complete global positioning system (GPS) constellation of 24satellites, which has provided a more reliable and comprehensive coverage;Page C-12

♦The issuance by the Federal Communication Commission (FCC) of the final rulesconcerning the automatic vehicle monitoring (AVM) band, which has encouraged theentrance of more risk-averse firms into the AVM band market (now referred to as theLocation and Monitoring Service (LMS));♦The emergence of companies that provide lower-earth orbit (LEO) and mid-earth orbit(MEO) satellite systems, which are new digital communication systems that have theability to track trailers, instead of only tractors, because powerful transmitters are notrequired; 14 and♦The development of digital enhanced specialized mobile radio (ESMR) networks thatnow provide AVL capabilities. 152.2 SATELLITE AVL SYSTEMSDefinitionSatellite AVL systems offer global coverage and work best when a vehicle is stationary and farfrom tunnels, tall buildings, and mountains. The three primary satellite AVL systems are asfollows:♦Navstar Global Positioning System (GPS);♦Geostationary Satellite Systems; and♦Little Lower-Earth Orbit (LEO) Satellite Systems.How it WorksNavstar Global Positioning System (GPS)Navstar GPS is a one-way communication and vehicle location system developed and maintainedby the United States Department of Defense. This system uses a technique called Time-Difference-of-Arrival (TDOA). TDOA for Navstar measures the time delays of consecutivetransmissions from at least three satellites (of a total of 24) located 10,900 miles above the earthto an in-vehicle receiver. In addition to an in-vehicle receiver, a GPS system requires an antennaand an on-board computer (OBC) connected to a mobile communications system. For an OBC tointerpret the direction, speed, and other identification information of a vehicle, a receiver mustcapture a minimum of three satellite transmission signals. An OBC processes the vehiclePage C-13

information, which is then sent via two-way radio or cellular telephone to the dispatch center. TheGPS system will locate a vehicle within approximately 100 feet, but location determination may notbe possible if high buildings block the transmission signal. 16Geostationary Satellite SystemsGeostationary satellites orbit at the same rotational speed as the earth at a height of 22,238 miles;as a result, these satellites appear stationary from the earth’s surface. These satellites operate inthe KU band (14- to 16-MHz) and use TDOA techniques to determine vehicle location. TDOA forgeostationary satellites deciphers the vehicle’s position by measuring the time delay ofconsecutive transmissions from two satellites to a vehicle’s antenna and in-vehicle processor.The location information is transmitted from an in-vehicle processor to the satellites and then to adispatch center, which displays the vehicle’s latitude and longitude on a map in relation to majorlandmarks. AVL companies that use geostationary satellites must rent transponders located onthe geostationary satellites from commercial satellite owners such as General Electric ortelevision companies. Geostationary satellites can locate a vehicle to within about 3,000 feet.However, terrain shadowing remains as a major problem with geostationary satellite systems, dueto their limited number and their fixed-point in orbit.Little Lower-Earth Orbit (LEO) Satellite SystemsLittle LEO satellites plan to offer a two-way communication and a vehicle location service callednon-voice non-geosynchronous (NVNG). This system transmits only data, and the satellites donot move with the earth’s orbit like geostationary satellites. Currently, two of the 36 satellitedeveloped by Orbital Communications (Orbcomm) of Dulles, VA orbit the earth at a height of 400to 500 miles, which is much lower than both GPS and geostationary satellites. These satellitesoperate in the very high-frequency (VHF) band (137-140 MHz). With an incomplete system ofonly two satellites, Orbcomm can provide only vehicle location services; two-way communicationis not yet possible. To determine vehicle location, the two satellites use a Doppler phase shifttechnique, which measures changes in receiver frequencies. The satellites transmit continuoussynchronized signals which are received by on-board control devices, and then are calculated bythe in-vehicle processor. Little LEOs can locate a vehicle accurately within 3,000 feet. However,accuracy frequently approaches 100 feet.Page C-14

Benefits and DrawbacksGPS-based systems:♦Benefits. Global coverage. Greater accuracy of speed, locational, and directionalinformation than other existing satellite AVL systems. Can be small, hand-held, andportable, enabling trailer tracking. Free service (managed jointly by the U.S.Department of Defense (U.S. DOD) and the U.S. Department of Transportation (U.S.DOT)).♦Drawbacks. Does not work indoors. Terrain interference may occur in dense urbanareas. A separate communications device is needed to send location information to adispatch center.Geostationary systems:♦Benefits. Global coverage. Does not require a mobile communication system suchas a two-way radio to transmit location information back to a dispatching center.♦Drawbacks. Requires powerful transmitters, which prohibits the use of hand-helddevices, makes the hardware more costly, and prohibits trailer tracking due to powerrequirements. High buildings can block transmission signals.Little LEO systems:♦Benefits. Global coverage. Will offer two-way data communications. Little LEOs donot need powerful transmitters, due to close earth orbit. Thus, the hardware ischeaper, and hand-held devices and trailer tracking are possible. The effects ofterrain interference are not significant.♦Drawbacks. Less accurate than GPS, especially when the vehicle is in motion. LittleLEO communication systems cost about three times more than geostationarycommunication systems, however, prices are expected to drop significantly.Table 2 compares the benefits and drawbacks of satellite AVL systems.Page C-15

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MarketSatellite systems are the primary location/navigation technologies for fleet management marketedto the trucking industry because of their higher accuracy and lower costs when compared toground-based infrastructure.CostGPS-based systems. Capital costs for vehicle units range from $300 to $3,000 per vehicle,depending on the unit’s features.Geostationary systems. Capital costs are $150 per month per vehicle for leased units or $3,500to $4,500 to buy equipment.Little LEO systems. Capital costs for vehicle units are less than $1,000 per vehicle.None of the costs listed include maintenance and operation.VendorsGPS-based AVL manufacturers: 17♦AUTO-TRAC, Dallas, TX;♦Fairchild Defense, Germantown, MD;♦HighwayMaster, Dallas, TX;♦Navigation Data Systems, Inc., New Orleans, LA;♦Rockwell International, Anaheim, CA; and♦Trimble Navigation, Sunnyvale, CA.Page C-17

Geostationary satellite manufacturers:♦American Mobile Satellite Corporation (AMSC), Reston, VA;♦Qualcomm, Inc., San Diego, CA.Little LEO satellites manufacturers:♦Orbcomm, Dulles, VA began operating its AVL system in 1995. By 1998, they plan tohave a full constellation of 36 satellites.OutlookPrior to the development of GPS, geostationary systems dominated the satellite AVL market.However, GPS has seen tremendous growth that is expected to increase. LEO satellite systemswill provide significant competition to GPS in a few years because of their ability to providecommunications as well as AVL. The development of Differential GPS (DGPS), which providesaccurate AVL in dense urban areas through the use of supplemental ground-based transmitters,should provide GPS with a competitive edge for urban AVL applications.Orbcomm plans to have all 36 little LEO satellites fully operational by 1998. VITAsat/Gemnet is alittle LEO satellite system that is in development by Volunteers in Technical Assistance and CTA.Other companies that are requesting FCC licenses to operate little LEO satellites include StarsysGlobal Positioning, GE American Communications, Final Analysis, LEO One USA, and E-Sat. 18Now under development, big LEO satellites will relay positional data with only a slight time delayand will be able to transmit both data and voice. These satellites are expected to be in operationby 1998 or 1999. Big LEO systems will calculate vehicle location by measuring the time delay oftransmissions between two or more satellites, and will be accurate to at least 300 feet. Big LEOcompetitors include Motorola’s Iridium, Inc., Qualcomm and Loral’s Globalstar, TRW andTeleglobe of Canada’s Odyssey (a MEO satellite system), and ICO Global Communications’Inmarsat P. 19Page C-18

2.3 GROUND-BASED INFRASTRUCTURE AVL SYSTEMSDefinitionGround-based AVL systems differ from satellite systems in that they use ground transmitters orreferences instead of satellites to determine vehicle location. These systems can locate a vehiclemore accurately than satellite AVL systems in dense urban areas, yet their coverage tends to beless extensive. The four main types of ground-based AVL systems are as follows:♦Location and Monitoring Service (formerly the Automatic Vehicle Monitoring (AVM)Band);♦Dead Reckoning;♦LORAN-C;♦Signposts; and♦Dedicated Short-Range Communications (DSRC).How it WorksLocation and Monitoring ServiceThe LMS locates vehicles and provides two-way communication. The original AVM systemsbegan to emerge after the FCC ruled in the 1970s that a portion of the 902-928 MHz band couldbe used for automatic vehicle monitoring. 20 However, commercial uses often were limited byinterference with unlicensed “Part 15” users until a portion of this spectrum was set aside for LMSuse by the FCC in 1995.AVL is provided when a dispatcher uses a paging signal to activate a vehicle’s transceiver, whichresponds by transmitting a signal to land-based antennas. A control system then measures thesignal’s time of arrival at several antennas and forwards the vehicle location information to thedispatcher. The accuracy of LMS systems ranges from 300 feet to 1,000 feet.Dead Reckoning SystemsDead reckoning AVL uses an on-board magnetic compass and wheel odometers to track avehicle’s distance and direction from a known starting point. An on-board computer calculatesthe vehicle location using the compass and odometer readings. Frequently, this locationPage C-19

Benefits and DrawbacksLMS systems:♦ Benefits. Provides two-way communication. Encounters no transmissioninterference in urban areas.♦Drawbacks. Requires a network of antennas, which are not yet in place nationwideand are unlikely to reach rural areas.Dead Reckoning systems:♦Benefits. Provides accurate determination of location; often, it is coupled with GPSto ensure high accuracies in both urban and rural environments.♦ Drawbacks. Accuracy varies outside urban areas, often requiring anothercomplementary AVL System.LORAN-C systems:♦Benefits. The infrastructure is in place throughout the United States and ismaintained and operated by the Federal government.♦Drawbacks. Accuracy deteriorates in interior territories because ground towercoverage is less extensive. This technology will become obsolete by the year 2000.Signpost systems:♦Benefits. Does not require sophisticated and expensive technologies.♦Drawbacks. Less advanced technology. Requires installation, tuning, maintenanceand power supply for field-installed transmitters. Limited placement of signpostslimits usefulness.Page C-21

DSRC systems:♦Benefits. Does not require sophisticated and expensive technologies.♦Drawbacks. Requires installation, tuning, maintenance and power supply for fieldinstalledtransmitters. Useful only at specific locations.Table 3 compares the benefits and drawbacks of ground-based AVL systems.MarketLMS systems are holding their place in the market and remain competitive; LORAN-C is beingphased out in favor of satellites. Dead reckoning is used by short-haul carriers, such ascouriers, that need exact vehicle location information in dense urban areas. Fleet schedulers usedead reckoning for routing and dispatching, while drivers use it for navigation. Long-haul carriersmay use GPS intermittently with map matching to update vehicle locations. Signposting continuesto be used for localized areas. DSRC is used primarily for toll road applications to manageintermodal shipments and increase the efficiency of terminal operations.CostLMS systems: Workstation software costs about $1,500. Vehicle transceivers total less than$500 per vehicle. Provides communication abilities.Dead Reckoning systems: $1,000 to $2,000 per vehicle. Requires additional communicationequipment.Loran-C systems: The LORAN-C unit, which consists of an antenna, receiver, andmicroprocessor located in the truck cab, ranges from $500 to $2,000 per vehicle. Requiresadditional communication equipment.Signpost systems: No data available.DSRC systems: Varies on a case-by-case basis. Transponder tags generally cost less than$100 apiece.None of the costs listed include maintenance and operation costs such as monthly user fees.Page C-22

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VendorsLMS system manufacturers:♦Teletrac, Inc., Leawood, Kansas.Dead Reckoning manufacturers:♦Navigation Data Systems, Inc., New Orleans, LA (“FleetTrak” systems);♦Trimble Navigation, Sunnyvale, CA (“Starfinder” and “Placer” systems); and♦Westinghouse, Baltimore, MD (“SmartTrack Vehicle Management System”).Loran-C manufacturers:♦Navigation Data Systems, Inc., New Orleans, LA (“FleetTrac” systems); and♦Teleride Sage, Ltd., Toronto, Ontario (“Teledispatch” system).Signpost manufacturers:♦No manufacturers were identified.DSRC transponder manufactures:♦ASGI, Advanced Systems Group International, Inc., Dulles, VA; and♦Texas Instruments, Inc., Dallas, TX.OutlookGround-based AVL systems are being adopted less frequently by motorcarrier fleets. Thedecommission of LORAN-C will cause LORAN receivers to become obsolete by the year 2000.Other ground-based AVL systems will begin to lose market share to satellite AVL systems asmore satellites are launched during the next several years. Satellite systems are advantageousbecause they provide reliable global coverage, while remaining cost-competitive with groundbasedsystems.Page C-24

Ground-based AVL systems also will be contending with strong competition from cellular AVLsystems, which have the potential to gain a large market share of the AVL market within the nextone to five years. This is because the FCC mandated that by 2001, commercial mobile radioservice (CMRS) providers such as Cellular One must be able to locate 911 callers who are usingcellular phones. In essence, this legislation is requiring vehicle location capabilities for many ITScommunications systems.A technology that monitors the location of cellular telephones is being developed by KSI, Inc., ofAnnandale, VA. This system uses two cell sites to triangulate a cellular telephone signal’s angleof arrival. The vehicle location accuracy of the KSI system is expected to be at least 100 feet; thecost will vary depending on a case-by-case basis. The technique is undergoing field trials, and isnot yet available commercially. When the infrastructure is in place, it will be able to monitor anyvehicle that is equipped with a cellular phone. KSI expects the technology to facilitate fleetmonitoring and incident management.TrackMobile of San Diego, CA also has developed a technology that monitors the location ofcellular telephones. Chips inside cellular phones coupled with receivers near cell sites will allowfleet dispatchers to identify the location of a cellular phone. The company is in the final stages oftesting, and plans to sell its product commercially by late 1997. The vehicle location accuracy isexpected to be from 300 to 3,000 feet, depending on the coverage area. 23Galaxy Microsystems of Austin, TX has developed a ground-wave positioning system that usesfour transmitting towers located on the periphery of a metropolitan area and radio waves belowthe AM band (180-450 kHz). Galaxy has not begun to sell its product commercially because it islooking for a corporate partner. The current plan is to market this technology primarily as apersonal locator. Nevertheless, the technology also could be used as a cellular telephone locatorby integrating a chip into cellular telephones. The accuracy is 30 feet or better and will cost about$100 per unit. 24Another technology that can be used in assessing vehicle location is Cellular Digital Packet Data(CDPD). Small transmitter chips are placed in cellular handsets; these chips transmit costefficientpackets of data at high speeds over unused cellular voice channels. This system soonwill be widely available; however, this technology does not function indoors or in dense urbanareas.Page C-25

3.0 MOBILE COMMUNICATION SYSTEMS3.1 OVERVIEWDefinitionMobile communication systems provide data or voice communication between drivers anddispatchers, and communication between carriers and other parties such as intermodal facilityoperators, regulatory institutions, clients, and intermodal carriers. A mobile communicationsystem can be integrated with a company’s computer operations, on-board computers andvehicle location systems, allowing for the exchange of real-time routing, dispatching, driver, client,and vehicle information. There are four ways to provide mobile communications:♦Mobile satellite services (MSS);♦Specialized mobile radio (SMR);♦Cellular; and♦Paging.Two-way radio systems were the most commonly used communication systems for drivers anddispatchers prior to the onset of satellites, pagers and cellular phones. Originally, mobile satellitecommunications systems were limited to text transmissions, while specialized mobile radio andcellular systems were limited to voice communications. Currently, satellite systems still providemostly data messaging services; SMR and cellular systems offer both voice and datatransmissions.How it WorksSatellite systems depend on earth-orbiting transmitters; SMR, cellular, and paging operationsdepend on ground-based transmitter facilities. More detailed explanations of the technologies areprovided below in the descriptions of each mobile communication system.Page C-26

Benefits and DrawbacksThe benefits of a mobile communication system are as follows:♦Increases the number of possible pickup and delivery stops during a given tripbecause dispatchers and drivers are able to communicate in real-time;♦Improves the accuracy and consistency of data collected from shippers, due to onsitedata entries; 25♦Transmits emergency signals/messages to drivers (e.g., concerning family members)and to dispatchers (e.g., regarding a flat tire or breakdown); and♦Enables dispatchers to locate customer shipments and to calculate estimated time ofarrival (ETA), delays, and costs for services. 26The only obvious drawbacks associated with mobile communication systems are:♦The costs;♦The complexity of the selection of a system;♦System maintenance; and♦System operation.The strengths and weaknesses of each mobile communication system are discussed in theSections 3.2, 3.3, 3.4, and 3.5 on mobile satellite systems, specialized mobile radio, cellular, andpaging, respectively.MarketThe 1996 survey conducted by the ATA Foundation of approximately 700 motor carriers foundthat about one-half of the surveyed fleets were using mobile communication systems. 27 Marketshares were similar between for-hire carriers and private fleets. Less-than-truckload carriers,long-haul companies, and just-in-time delivery operations are the primary types of carriers usingmobile communication systems. 28 Carriers tend to favor mobile satellite services because of bothlower costs and better overall coverage; cellular systems rank second and are especially popularwith local and regional fleets because of the systems’ good regional coverage.Page C-27

CostThe cost of mobile communication systems vary widely, depending on the systems’ capability.Simple pager systems may cost as little as $50; very sophisticated MSS systems may cost up to$4,000. This cost range excludes maintenance and operation costs such as monthly user fees.VendorsRefer to the descriptions of individual mobile communication systems in Section 3.2 throughSection 3.5.OutlookMobile communication companies are offering a range of communication options (i.e., satellite,SMR, cellular, and paging services) to provide optimal communication services at the lowest cost.One option consists of integrated mobile communication systems that automatically switch fromland-based to satellite networks depending on the location of the truck. Rockwell Internationaldeveloped the first integrated system; Norcom Networks has a competitive system.The market is beginning to expand more to regional carriers that tend to find terrestrial-basedsystems, such as cellular, more appealing because of their low initial costs. Furthermore, CDPD,which transmits data during pauses in cellular conversations, will make cellular systems moreuseful and cost-effective. Cellular providers are installing new CDPD hardware and are expectedto market regional carriers because an integrated, national cellular network does not yet exist. 293.2 MOBILE SATELLITE SERVICESDefinitionThe standard Mobile Satellite Service (MSS) uses geostationary satellites to relay messagesbetween drivers and dispatchers. Except for the AMSC satellites, which provide voice, data, anddispatching capabilities, MSS only offer text messages.How it WorksDrivers transmit messages to satellites, which relay the messages to an earth station. To receivemessages, dispatchers must use a modem to access their messages at the earth station. Thereverse sequence is used when dispatchers send messages to drivers. (AMSC provides directcommunications without an earth station.) Unlike GPS satellites, which are managed by the U.S.Page C-28

DOD and the U.S. DOT, most geostationary satellites are owned by private companies. 30 To relaymessages, satellite services such as Rockwell International must lease space on geostationarysatellites. Some of the satellite systems include the following:♦AMSC satellite, which is owned by AMSC, but operated by a consortium of firmsincluding AMSC, Hughes Communications, Inc., and AT&T;♦GTE’s Spacenet 2; and♦Inmarsat’s Marisat.Benefits and DrawbacksMajor benefits include:♦Range of satellite coverage, which includes the continental United States, Canada,and Mexico, makes it superior to both SMR and cellular truck systems; and♦Companies can easily track and record communications using text messaging.Some drawbacks of a MSS include:♦Requires expensive hardware to relay messages to satellites;♦Lacks useful fax capabilities because of slow data transmission speeds to and fromsatellites; 31♦Limited satellite capacity prevents MSS from providing real-time voice communication(AMSC can provide near real-time communication on demand); and♦During peak periods, the phone lines of the earth station may become congested, sosmall carriers without dedicated lines may be at a disadvantage.MarketMobile satellite services hold the majority of the mobile communication systems market. Out ofabout 220,000 wireless communication systems in operation throughout the nation, over 200,000are satellite systems and used primarily by long-haul operations. 32Page C-29

CostThe hardware for a basic system costs between $3,000 and $4,000 per truck, and includes atransceiver, a dome-shaped antenna and a display terminal. The dispatcher software for a basicsystem costs between $2,500 and $4,000 per workstation, and must run on the equivalent of aDOS-based IBM 486. The basic monthly fee for transmission of a specified number of charactersranges from $30 to $60 per vehicle. 33 These estimates do not include maintenance costs.VendorsThe following firms consolidate the various hardware, software and integration tools into mobilesatellite communication packages:♦American Mobile Satellite (AMSC), Reston, VA;♦Qualcomm, Inc., San Diego, CA;♦Norcom Networks, Bellevue, WA;♦Racotek Inc., Minneapolis, MN; and♦Rockwell International, Cedar Rapids, IA.OutlookFuture satellite developments that promise both voice and data transmissions will present seriouscompetition to MSS. These satellites include the little lower-earth orbit (LEO) satellites byOrbcomm; and big LEO, with competitors including Motorola’s Iridium, Inc., Qualcomm’s andLoral’s Globalstar, TRW’s and Teleglobe of Canada’s Odyssey, and ICO GlobalCommunications’ Inmarsat P. 34 (See Section 2.2 for details.) The Nationwide Wireless Network(NWN) by Mobile Telecommunication Technologies (Mtel) will provide a combined satellite andground-based two-way communications system.All of these systems expect to have significantly lower costs than current MSS systems.Page C-30

3.3 SPECIALIZED MOBILE RADIO (SMR) NETWORKDefinitionA Specialized Mobile Radio (SMR) network is a two-way communication system similar to mobilesatellite services except that messages are transmitted via land-based antennas instead ofsatellites.How it WorksData and voice messages are transmitted between users’ handsets and a network of land-basedantennas using radio bands of over 800 kHz. The antennas are connected to a network oftelephone lines. Unlike mobile satellite systems, there is no need to call a central network facilityto retrieve messages, which are transmitted directly to the dispatcher via telephone or to the drivervia radio.Benefits and DrawbacksThe main advantage of SMRs over satellite is that SMR transmissions are somewhat faster,thereby providing more efficient fax and voice capabilities. The main disadvantage of SMRs isthat the ground infrastructure used to relay messages does not cover the entire continental UnitedStates. Antennas are located in most metropolitan areas of the United States, but the coverage issparse in rural regions and is difficult when buildings, mountains, or tunnels obstructtransmissions. A carrier’s ability to use this technology would depend on the adequacy ofcoverage in the carrier’s operating range.MarketSMR was authorized in 1974 by the Federal Communications Commission as a supplement tocitizens band (CB) radio. Despite its maturity, SMR has failed to gain significant marketpenetration. Satellite systems are favored for commercial vehicle communications.CostAn in-vehicle SMR-based system costs between $1,000 and $2,000. 35 Dispatcher software totalsbetween $2,000 and $3,000; and monthly user fees range from $50 to $100. Other fees includefleet connections to radio lines (up to $1,000 per month) and telephone rates that range from$0.40 to $0.80 per minute. These estimates do not include maintenance costs.Page C-31

VendorsThe following manufacturers produce SMR systems:♦ARDIS, Lincolnshire, IL (“Transportation Express”);♦Motorola Inc., Schaumburg, IL (“CoveragePLUS”);♦Nextel Communications, McLean, VA (“NexNote”);♦Racotek Inc., Minneapolis, MN (“RacoNet”); and♦RAM Mobile Data, New York, NY (“Mobitex”).OutlookAs the cellular phone/data industry expands, it will provide more competition for SMR.Nevertheless, ESMR networks are being developed that support more reliable and cost-effectivevoice and data services. 36 ESMR will also be able to provide AVL capabilities.3.4 CELLULAR PHONE SYSTEMSDefinitionCellular mobile communications systems are two-way communication systems similar to mobilesatellite and SMR communication networks except that messages are transmitted using cellularphones.How it WorksVoice conversations are transmitted between the user’s cellular phone and a ground-basedtransceiver. The transceiver’s effective radius of about 16 miles denotes a cell. However,transceivers in urban areas may have an effective radius of less than five miles. Multiple cells areconnected by a central switching station that automatically reroutes calls as trucks move from cellto cell within the system.Benefits and DrawbacksHistorically, cellular systems offered to commercial vehicle operators not only charged for longdistancefees, but also had high “roaming charges” (i.e., cellular usage fees ranging from three toPage C-32

five dollars per call). Furthermore, cellular systems traditionally offered only voice transmissions.New systems have eliminated “roaming charges” and also have low start-up costs, but high longdistancecharges keep operating costs high. 37 Similar to SMR and satellite, signals can fadewhen obstructed by tunnels, mountains, or buildings. Because cells are sparse in some of theless populated areas of the United States, there are coverage limitations.MarketCellular systems attract smaller fleets such as local and regional companies because of their lowinitial costs. With regard to market position, compared to mobile satellite systems, commercialvehicle operators rank cellular systems as a distant second.CostA cellular phone with an auxiliary transmitter which significantly extends the phone’s range costsapproximately $1,500 per truck for a five-year lease. Cellular phone systems without auxiliarytransmitters have monthly fees between $30 and $40 per truck. All cellular voice transmissionsaverage approximately $0.50 per minute. These estimates do not include maintenance costs orlong-distance charges.VendorsThe main distributors of cellular mobile communication systems to motor carriers are:♦♦♦HighwayMaster, Dallas, TX;Qualcomm, Inc., San Diego, CA; andPeopleNet Communications, Corp., Chaska, MN.OutlookThe market for cellular mobile communication systems is growing dramatically, reducing its costto consumers. The capacity of cellular telephone services will increase over the next decade asservice providers and users switch from analog to digital systems that transmit data messages.Two digital technologies will compete for this rapidly growing market segment: PersonalCommunication Service (PCS) systems and CDPD.PCS systems are more efficient in the use of cellular channels than current analog cellularsystems. PCS systems differ from cellular in that they operate at a higher frequency (1.8 to 2.0GHz) compared to cellular phones (800 to 900 MHz). Sprint, Ameritech, Bell, and other long-Page C-33

distance telephone service providers are developing PCS systems, having purchased licensesfrom the FCC. Several systems are already in use in major metropolitan areas, providing strongcompetition to cellular service.CDPD further improves existing analog cellular efficiency by transmitting data during pauses inphone conversations. This technology, like PCS, can be interfaced with onboard computers toquickly transmit AVL, vehicle status, and vehicle identification information to dispatchers. CDPDwas developed by a consortium of McCaw Cellular, GTE, Contel, Ameritech, Bell Atlantic,NYNEX, PacTel, and Southwestern Bell. Fleet managers must purchase a CDPD digital modemto operate the system, and need to pay approximately $0.05 per data message. 38Although CDPD provides digital service for existing analog cellular providers, many of thesecompanies are installing PCS transmitters to preserve their mobile communications market.Many companies offer handsets that automatically switch between analog cellular and PCSsystems. It is not known which, if either, of these technologies will become dominant.3.5 PAGING SYSTEMSDefinitionPagers are mobile communication devices used by dispatchers to send messages to drivers.Dispatchers use pre-coded messages to relay information such as emergencies, routingrevisions, special permit pick-ups, and backhaul freight. Dispatchers also can alert resting driversusing a “sleeper beeper” option.How it WorksDispatchers transmit phone numbers, two-digit codes, and status or full-text messages to drivers.Messages can be transmitted over various radio frequencies. Pagers alert drivers of a messagevia blinking lights or beeps, and displays a 12-number coded message showing first a customer’sphone number and then a two-digit code which refers to one of up to 99 coded messages. Codedmessages make the system ideal for transmitting pre-recorded correspondences, but it is notcapable of transmitting detailed instructions. More sophisticated pagers can be equipped with avoice-mail system, full-text messages, a message-retrieval system for the driver, a service thatrepeats urgent messages every 15 minutes for three hours, and group paging. 39Page C-34

Benefits and DrawbacksThe main advantage of a paging system is its low cost. The main disadvantages are the lack ofextensive two-way communications, and the inability to convey detailed messages.MarketThe paging market is targeting mainly smaller fleets such as owner-operators, as well as longhauland fixed route operations.CostPagers cost less than $200 to purchase; monthly air time or service fees amount to about $20 pertruck. These estimates do not include maintenance costs.VendorsThe main manufacturers and distributors of paging systems are:♦Airtouch Paging, Dallas, TX;♦Cue Network, Irvine, CA;♦MobileMedia, Ridgefield Park, NJ; and♦Paging Network, Plano, TX.OutlookCurrently, one-way paging is used extensively by motor carriers. Two-way paging networks areavailable as of 1997 using the new PCS network which is available in selected metropolitan areas.Mobile Telecommunication Technologies (Mtel) is developing a nationwide, two-way PCS networkthat will enable users to send and receive messages that are more detailed than current two-waypagers. 40 (See Section 3.3 for more detail.) FlashComm of Melbourne, FL has plans toimplement a nationwide, two-way messaging and vehicle-location service using high-frequencyradio channels and subcarrier channels. FlashComm expects their service to be moreeconomical than satellites, and more sophisticated than one-way pagers. 41Page C-35

4.0 ON-BOARD COMPUTERSDefinitionOn-board computers (OBCs), sometimes referred to as electronic trip recorders, monitor vehicleperformance measures such as speed, fuel consumption, and drivers’ hours of service. Thisinformation is downloaded from the vehicle’s OBC to the dispatch center using mobilecommunication systems. OBCs often are used in conjunction with routing and dispatchingsystems as well as with maintenance-scheduling software. OBCs provide the following functions:♦ Business Transactions. Registers delivery times, state line crossings, andcustomer signatures for proof-of-delivery; transmits delivery notifications.♦Driver Log. Enables drivers to input records of fuel consumption and hours ofservice using a keyboard and display screen.♦Vehicle Location Information. Deciphers automatic vehicle location systemtransmissions.♦Mechanic Log. Tracks engine idling, braking, shifting, and acceleration patterns, aswell as diagnostic systems for ancillary equipment such as refrigeration units. Allowsdrivers to collect vehicle operations data prior to a malfunction in order to improvesafety performance of vehicles. 42How it WorksTrip information is recorded by bar code readers, sensors, electronic signature readings, or driverdata entry. In older OBCs, a removable memory cartridge is used to transfer the recorded data toan office microcomputer for analysis. Newer versions of OBCs use electronic transfermechanisms such as digital radio, cellular, or satellites to relay real-time information from thevehicle to motor carrier dispatch offices. One type of on-board computer, called a palmtopcomputer, transmits stored trip information automatically to dispatchers when the driver places thecomputer in its cradle inside the truck cab.Benefits and DrawbacksThe main benefits of OBCs are the savings that occur through lower maintenance costs, andextended vehicle replacement periods that are made possible by the OBC’s monitoring functions.The data also can be used to improve fleet safety performance. For example, one companyPage C-36

experienced a 56 percent reduction in accident costs and a 25 percent drop in accident frequencyafter installing OBCs. 43 The main disadvantages of OBCs are the high initial costs for technologyand employee training, and system maintenance costs. In addition, rapidly changing technologymay make OBCs a risky investment due to the potential for obsolescence.MarketOne-quarter of the approximately 700 motor carriers responding to the 1996 ATA Foundationsurvey reported using OBCs, primarily for monitoring fuel and engine use. The survey reportcalculated OBC usage to be approximately 10 percent industry-wide. 44 About six percent ofrespondents, mostly large and private fleets, reported using electronic driver logs. 45 Long-haultruckload carriers, just-in-time delivery services, and couriers are more apt to use OBCs toimprove data entry, optimize routing, and provide shipment monitoring services to clients. 46CostOBCs range from $200 to $3,000 per unit. These estimates do not include maintenance andoperation costs.VendorsOBC manufacturers include:♦Cadec Systems Inc., Londonderry, NH (“SensorPLUS”);♦IBM, San Jose, CA (“Touchmobile”);♦Norand, Cedar Rapids, IA (“RT/DT1700 Radio Data Terminal”);♦Qualcomm Inc., San Diego, CA (“SensorTRACS,” “JTRACS,” “TrailerTRACS”); and♦Rockwell International, Troy, MI (“ProSeries Electronics” and “Tripmaster Data MaxII”).OutlookOBCs are likely to become a standard tool for commercial vehicle operations to obtain a real-timeinventory of drivers’ activities, business transactions, vehicle location and mechanical operations.The recent development of the Microsoft Windows CE operating system will further enhance thePage C-37

capabilities of OBCs in the near future. This operating system is designed specifically for palmtopcomputers. An upcoming fuel tax reporting service developed by HighwayMaster of Dallas,TX will create fuel tax reports according to the number of miles traveled in each state as recordedby OBCs; service will be used to streamline the interstate tax filing process. 47Page C-38

5.0 ROUTING AND DISPATCHING SOFTWAREDefinitionRouting and dispatching software, also known as computer-aided dispatch, helps select routesthat minimize the time and cost of scheduling trucks, and helps assign freight and drivers totrucks. More sophisticated systems also make routing decisions based on real-time trucklocations, generate route maps, estimate delivery times and distances, and help improve costestimates.How it WorksThe simplest routing programs plot the shortest highway path between a set of given points; moresophisticated programs pick the optimum route given instructions to minimize travel time and fuelcosts within performance parameters such as driver hours, equipment, traffic and warehouseconstraints. These software programs historically have been custom-tailored to a carrier’soperations. The standardization of database software and the use of point-and-click “windows”applications has reduced costs and improved user friendliness.Benefits and DrawbacksThe 1996 ATA Foundation survey found that carriers using routing and dispatching softwarereported operating cost savings of three to ten percent in mileage, fuel, time, labor, andpaperwork. 48 Other benefits include:♦Improved dispatcher productivity. Companies report that routing procedures, whichused to take staff eight hours with a manual system, now can be finished in one hour.♦Reduced client inventory costs. With computerized routing and dispatching systems,more companies are using “just-in-time” delivery systems that no longer require firmsto keep extensive inventories at manufacturing plants.♦Improved communication efficiency. One company reports that dispatchers mustspend 15 minutes on the phone when relaying load information to drivers. With acomputerized system, the data can be relayed instantaneously. 49♦Reduced labor costs. A company does not need to employ logistics experts tooperate these systems. Simple user interfaces make it possible for employeesPage C-39

without specialized training to operate the system. Some shippers are beginning tomake their routing and dispatching information available on the Internet so thatreceivers can track shipments in real-time thus reducing dispatchers’ workloads.The main drawback of routing and dispatching software is that it must be coupled with othertechnologies to be most effective. For example, OBCs are needed to calculate a vehicle’sposition, and mobile communication systems are needed to send the vehicle location informationto the dispatcher. Dispatchers use AVL information for real-time routing and dispatching.MarketThe 1996 ATA Foundation survey of calculated that approximately one-fifth of motorcarrier fleetsuse routing and dispatching software. 50 Three-quarters of large and national fleets in the surveyreported using the technology, as did one-half of the medium and regional fleets, and one-quarterof the small and local fleets. 51 The primary users of routing and dispatching software are carriersthat are most interested in maximizing equipment utilization and improving their overall fleet costeffectivenesssuch as package delivery fleets and less-than-truckload operations. 52CostA basic software package for the dispatch office costs about $3,000. Other expenses to considerinclude hardware, training and system maintenance costs. Companies with automatic routingservices have reported achieving savings equal to the start-up costs within the first year of thesystem’s operations. The overall cost reductions for fleets average 30 percent. 53VendorsThe following companies manufacture mobile dispatch software:♦CAPS, Inc., Atlanta, GA;♦Dialog Systems Div., E. Lansing, MI;♦Dis-Patch, Neenah, WI;♦Easy Street Software, Inc., Raleigh, NC;♦Etak, Inc., Menlo Park, CA;Page C-40

♦Leaseway Technology, Beachwood, OH;♦Logistics Systems Engineering Inc., Annapolis, MD;♦MicroAnalytics, Inc., Arlington, VA;♦Qualcomm, San Diego, CA;♦Roadnet Technologies, Inc., Timonium, MD;♦RoadShow RTSI, Vienna, VA; and♦STSC, Inc., Rockville, MD.OutlookNewer versions of computerized routing programs will give drivers an opportunity to provide inputto routing and dispatching through improved on-board systems. On-board, colored, touchscreendisplay computer routing maps are expected to be available to drivers by 1998. Until this time,new routing systems will record page and grid numbers of common map books to facilitatelocation identification for drivers. 54Page C-41

6.0 SUMMARY6.1 SUMMARY OF BENEFITS, DRAWBACKS, AND COSTSAs summarized in Table 4, each of the four types of ITS technologies used for fleet managementhas benefits and drawbacks. For example, some technologies, such as satellite AVL systems,offer broad geographic coverage, but do not perform well in urban areas where structuresinterfere with signal transmissions. Other systems, such as mobile communications pagingsystems, are relatively inexpensive compared to some of the alternative communicationtechnologies, but offer only limited two-way communications from dispatchers to drivers. It isimportant that carriers understand these benefits and drawbacks to ensure that they select theITS fleet management system that can best meet their needs and goals.Cost remains a major consideration for carriers interested in adopting fleet managementtechnologies. Table 5 provides information on the range of costs associated with each categoryof ITS fleet management technologies, as well as a list of the vendors selling each technology. Itis clear from the table that, even within each technology category, there is a wide range ofequipment costs. In general, costs escalate as the power and flexibility of the technologiesincreases.6.2 SUMMARY OUTLOOKThe most important challenge for the future of ITS fleet management technologies is to improvemechanisms for integrating AVL systems, OBCs, mobile communication systems, and routing anddispatching software. Service providers are beginning to market complete systems thatincorporate these components to facilitate “one-stop shopping” for fleet managementtechnologies. Technologies that incorporate real-time congestion and incident information alsoare expected to reach the market in the near future. As on-road and on-board ITS technologiesimprove, drivers or dispatchers also will be able to access automated traffic information. Themarket for these technologies is expected to continue to grow, as competitive pressures within themotor carrier industry push carriers to pursue fleet management technologies that will improveefficiencies and reduce costs.Page C-42

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ENDNOTES1Driscoll, Clement, “Finding the Fleet: Vehicle Location Systems and Technologies,” GPS World,April 1994, p. 66.2U.S. Department of Transportation, Federal Highway Administration, Commercial Vehicle FleetManagement and Information Systems, Draft Technical Memorandum 2, Summary of Case StudyInterviews, prepared by Cambridge Systematics, Inc., August 15, 1996, pp. 19-20.3Cambridge Systematics, Inc., Intelligent Transportation Systems for Commercial Vehicle Operations:Policy and Implementation Issues, June 1995, pp. 3-46.4Cambridge Systematics, Inc., Systems Planning for Automated Commercial Vehicle Licensing andPermitting, October 1993, pp. 3-4.5U.S. Department of Transportation, Federal Highway Administration, Commercial Vehicle FleetManagement and Information Systems, Draft Technical Memorandum 2, pp. 19-20.6Driscoll, “Finding the Fleet,” p. 66.7Ibid, p. 68.8Mele, Jim, “Fleet Owners Guide to Mobile Communications,” Fleet Owner, December 1992, p. 47.9American Trucking Association Foundation, Inc., A Survey of the Use of Six Computing andCommunications Technologies in Urban Trucking Operations, Alexandria, VA, 1992, p. 14.10American Trucking Association Foundation, Inc., Assessment of Intelligent TransportationSystems/Commercial Vehicle Operations (ITS/CVO) User Services Quantitative Benefit/Cost Analysis,August 1996, pp. 28-29.11Ibid, p. 27.12Ibid, p. 10.13U.S. Department of Transportation, Federal Highway Administration, Commercial Vehicle FleetManagement and Information Systems, Draft Technical Memorandum 2, pp. 19-20.14Driscoll, “Finding the Fleet,” pp. 66-67.15Driscoll, “Metro Trucking Fleets Use AVL to Increase Efficiency,” Automotive Fleet, April 1995,p. 2.16Ibid.17Ibid, p. 4.18Foley, Theresa M., “Big and little LEOs face off,” Aerospace America, September 1995, p. 36.19Ibid.20Driscoll, “Finding the Fleet,” p. 68.21Cambridge Systematics, Inc., Fleet Management Systems Market Research Study, 1989, p.11.22Mele, “Fleet Owners Guide to Mobile Communications,” p. 47.23Driscoll, “Finding the Fleet,” pp. 69-70.24Galaxy Microsystems Inc., Austin, TX, (512) 339-4204.25Cassidy, William B., “A New Niche for Mobile Data Systems: Competition Spurs LTL Carriersto Go Wireless,” Transport Topics, November 29, 1993, pp. 6-7.26Siegel, Stewart, “Mobile Dialogue with Drivers,” Fleet Owner, May 1990, pp. 76-77.27American Trucking Association Foundation, Inc., Assessment of Intelligent Transportation Systems/Commercial Vehicle Operations (ITS/CVO) User Services Quantitative Benefit/Cost Analysis, p. 29.Page C-46

28Cambridge Systematics, Inc., Intelligent Transportation Systems for Commercial Vehicle Operations:Policy and Implementation Issues, pp. 3-46.29Conversation with Jim Mele, editor of truck.com, September 16, 1996.30Siegel, “Mobile Dialogue With Drivers,” pp. 74-75.31Mele, “Fleet Owners Guide Mobile Communications,” p. 47.32Conversation with Jim Mele, September 16, 1996.33Desmond, Parry and Rich Cross, “Integrating Mobile Communications,” Commercial CarrierJournal, April 1994, p. 64.34Foley, “Big and little LEOs face off,” p. 36.35American Trucking Association Foundation, Assessment of Intelligent Transportation Systems/Commercial Vehicle Operations (ITS/CVO) User Services Quantitative Benefit/Cost Analysis, p. 41.36Driscoll, “Finding the Fleet,” p. 70.37Mele, “Fleet Owners Guide to Mobile Communications,” p. 47.38Driscoll, “Finding the Fleet,” p. 70.39Conversation with Marvin Beasley of HighwayMasters, September 3, 1996.40Kitchen, Jay, “Wireless and the information superhighway: The road to the future,”Communications, June 1995, Vol. 32, No. 6, pp. 22-27.41“Flash Comm Targets Trucking Industry for Nascent National Subcarrier Network,” MobileData Report, Vol. 8, No. 2, January 15, 1996.42Cambridge Systematics, Inc., National ITS/CVO Program Requirements, July 1996, p. 237.43Siegel, “Mobile Dialogue with Drivers,” p. 78.44American Trucking Association Foundation, Assessment of Intelligent Transportation Systems/Commercial Vehicle Operations (ITS/CVO) User Services Quantitative Benefit/Cost Analysis, p. 29.45Cambridge Systematics, Inc., Intelligent Transportation Systems for Commercial Vehicle Operations:Policy and Implementation Issues, pp. 3-46.46Cambridge Systematics, Inc., Systems Planning for Automated Commercial Vehicle Licensing andPermitting, pp. 3-4.47“HighwayMaster, TTSI to Offer Automated Fuel Tax Reporting,” Inside ITS, No. 18, Vol. 5,September 11, 1995.48Cambridge Systematics, Inc., National ITS/CVO Program Requirements, p. 238.49Mele, “Better Routes Are As Close As The Computer,” Fleet Owner, April 1992, pp. 64-72.50American Trucking Association Foundation, Assessment of Intelligent Transportation Systems/Commercial Vehicle Operations (ITS/CVO) User Services Quantitative Benefit/Cost Analysis, p. 26.51American Trucking Association Foundation, Inc., A Survey of the Use of Six Computing andCommunications Technologies in Urban Trucking Operations, p. 10.52U.S. Department of Transportation, Federal Highway Administration, Commercial Vehicle FleetManagement and Information Systems, Draft Technical Memorandum 2, pp. 19-20.53Cassidy, William B., “Computerized Routing: Gaining The Competitive Edge,” Fleet Owner,May 1990, p. 83.54Mele, “Better Routes Are As Close As The Computer,” pp. 64-72.Page C-47

TABLE 1FLEET MANAGEMENT TECHNOLOGIESAutomatic Vehicle Location (AVL) Systems♦Satellite AVL Systems- Global Positioning System (GPS) Satellites- Geostationary Satellites- Little Lower-Earth Orbit (LEO) Satellites (Also providescommunication capabilities)♦Ground-Based Infrastructure Systems- Location and Monitoring Service, formerly known as theAutomatic Vehicle Monitoring (AVM) Band (Also providescommunication capabilities)- Dead Reckoning- LORAN-C- Signpost- Dedicated Short Range Communication (DSRC)Mobile Communication Systems♦Mobile Satellite Services (MSS)♦Specialized Mobile Radio (SMR)♦Cellular♦PagingOn-Board Computers (OBCs)Routing and Dispatching SoftwarePage C-9

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TABLE 2SUMMARY OF SATELLITE AVL TECHNOLOGIESTechnology Description Benefits DrawbacksGlobal Positioning System (GPS)satellitesGPS satellites, located 10,900 milesabove the earth, use TDOA tocalculate a truck’s position. TDOAmeasures the time delay ofconsecutive signals transmitted from anetwork of satellites. GPS has an AVLaccuracy within 100 feet.Global coverage. Greater accuracy ofspeed, locational, and directionalinformation compared to othersatellite systems. Users do not payoperational costs because the serviceis managed by the U.S. Departmentof Defense and the U.S. Departmentof Transportation. GPS does notrequire powerful transmitters, makinghand-held devices and trailer trackingpossible.Provides only one-waycommunication from satellites. Highbuildings can block transmissionsignals, prohibiting vehicle locationdetermination in urban areas. Doesnot work indoors.Geostationary satellitesThese satellites maintaingeosynchronous earth orbits at aheight of 22,500 miles. Using TDOAtechniques, the AVL accuracy is about3,000 feet.Global coverage. Provides two-waydata communication and vehiclelocation system.These satellites require powerfultransmitters, which prohibit the use ofhand-held devices and trailer tracking,and make the hardware more costly.High buildings can block transmissionsignals.Little Lower-Earth-Orbit (LEO)satellitesLittle LEO satellites orbit the earth at aheight of 400 to 500 miles. Thesesatellites operate in a very-highfrequencybandwidth (137-140-MHz).They use Doppler phase shifttechniques to locate vehicles, andhave accuracies between 100 feet and3,000 feet.LEOs do not require powerfultransmitters, making hand-helddevices and trailer tracking possible.These satellites provide globalcoverage, two-way, real-timecommunication (future), and theequipment costs less than GPS.Accuracy varies substantially whenthe vehicle is in motion. Little LEOsare not as accurate as GPS systems,and two-way communication is threetimes as expensive as geostationary.

TABLE 3SUMMARY OF GROUND-BASED INFRASTRUCTURE AVL TECHNOLOGIESTechnology Description Benefits DrawbacksLocation and MonitoringService (LMS) SystemsLMS systems use radio frequencies and anetwork of antennas to locate vehicles. Thedispatcher pages a vehicle’s transceiver,which responds by transmitting a signal toland-based antennas. A control systemcalculates the vehicle’s location bymeasuring the signal’s time of arrival tovarious antennas.LMS performs well in dense urbanareas, where buildings may blocktransmission signals. Provides twowaycommunication.LMS requires a network of antennas,which does not exist nationwide.Dead ReckoningDead reckoning uses an on-board magneticcompass and wheel odometers to track avehicle’s distance and direction from aknown starting point. An on-boardcomputer calculates the vehicle location.This information then is used by the driveror transmitted to the dispatch/control center.Dead reckoning can provide accuratevehicle locations in dense urbanareas.Accuracy varies outside urban areas.LORAN-CLORAN-C calculates a truck’s latitude andlongitude by measuring the time it takessynchronized radio pulses from two or moreground transmission towers to reach thetruck.The infrastructure is in placethroughout the United States and ismaintained and operated by theFederal government.Accuracy deteriorates in interiorterritories because ground towercoverage is less extensive. LORAN-Cwill be phased out by the year 2000.SignpostsInvolves placement of transmitters at fixedlocations, typically installed over theroadway on utility poles. As a vehiclepasses the signpost, it receives theencoded locational identifier from thesignpost, which the vehicle transmits alongwith its own identifier to a dispatch/controlcenter.Signposts are a simple andinexpensive technology, but arebeing phased out in favor of other,more advanced AVL technologies.Useful only where beacons areinstalled.DSRCRoadside transceivers receive informationfrom passing vehicles equipped withtransponder tags.DSRC is a simple and inexpensivetechnology.Useful only at specific locations.

TABLE 4SUMMARY OF FLEET MANAGEMENT TECHNOLOGIES: BENEFITS AND DRAWBACKSTechnology Benefits DrawbacksAutomatic Vehicle Location (AVL)SystemsMobile Communication SystemsOn-Board Computers (OBCs)Satellites Global coverage: Higher accuracy andlower cost compared to ground-based.Ground-Based: Performs well in urban areas.Satellite: Comprehensive coverage of the UnitedStates, and populated areas of Canada.SMR: Transmits voice, data and fax messages. Datatransmissions group messages and communicationtracking.Cellular: Low start-up costs. Transmits both dataand voice messages.Paging: Low cost, easy-to-use service.Relatively low maintenance costs. Extends useful lifeof vehicle. Improves fleet safety performance.Satellites: May not be effective in urban areas where signalsare reflected or distorted by buildings, bridges and power lines.Ground-Based: Incomplete antenna network across theUnited States, especially in rural areas.Satellite: Transmits only data messages; expensive hardware;Lacks fax capabilities; slower transmissions during peakperiods.SMR: Limited coverage in many areas of the United States.Cellular: High user fees. Limited coverage in rural areas.Paging: Allows only one-way communication (dispatchers todrivers). Unable to communicate detailed instructions.Requires up-front costs for purchasing the software andhardware, and for training employees.Rapidly changing technology may result in quick obsolescenceof equipment, and may make it difficult to remain competitive.Involves system maintenance costs.Routing and Dispatching Software Improves dispatcher productivity. Requires up-front costs for purchasing the software andhardware, and for training employees.Increases inventory efficiencies.Involves system maintenance costs.Improves communication productivity.

TABLE 5FLEET MANAGEMENT TECHNOLOGIES: MAJOR VENDORS AND COSTSTechnology Major Vendors CostsAutomatic Vehicle Location (AVL)SystemsGPS-based: AUTO-TRAC; Fairchild Defense;HighwayMaster; Navigation Data Systems, Inc.;Rockwell International; and Trimble Navigation.Geostationary: American Mobile Satellite; Qualcomm,Inc.Little LEO: Orbital Communications.AVM band: Teletrac, Inc. of Leawood, Kansas.Dead reckoning: Etak, Inc.; Navigation Data Systems,Inc.; Trimble Navigation; and WestinghouseTransportation Systems.LORAN-C: Navigation Data Systems, Inc.; andTeleride Sage, Ltd. (Units are no longer beingproduced.)Signposts: No manufacturers identified.DSRC: Case-by-case basis. Transponders cost lessthan $100.GPS-based: Capital costs are $300 to $3,000/vehicle forvehicle units.Geostationary: Capital costs are $100 to $200/month pervehicle for leased units and for a messaging service.Little LEO: Capital costs for vehicle units are less than$1,000/vehicle.AVM band: Capital costs for workstation software equalsabout $1,500. Vehicle transceivers cost less than $500.Dead reckoning: Capital costs are $1,000 to $2,000/vehicle.LORAN-C: Capital costs are $1,500/vehicle.Signposts: Case-by-case basis.Mobile Communication SystemsSatellite: American Mobile Satellite; NorcomNetworks; Qualcomm, Inc.; and Rockwell International.Radio: ARDIS; Motorola; RAM; and Racotek.Satellite: Hardware ranges from $3,000 to $4,000/vehicle;Dispatcher software averages from $2,500 to $4,000; Monthlyuser fees range from $30 to $60/vehicle.Radio: Radios cost about $2,000/vehicle; Dispatchersoftware totals between $2,000 and $3,000; and user feesrange from $50 to $100/month.

TABLE 5ITS FLEET MANAGEMENT TECHNOLOGIES: MAJOR VENDORS AND COSTS (CONTINUED)Technology Major Vendors CostsMobileCommunicationSystemsCellular: HighwayMaster; Qualcomm, Inc.Paging: Airtouch Paging, Cue Network, MobileMedia, PagingNetwork.Cellular: A complete system totals about $1,500/vehicle for a5-year lease; Monthly fees cost between $30 and $40/vehicle;and transmissions range from $0.30 to $0.50/minute.Paging: Hardware totals about $500/vehicle; Workstationsoftware costs about $2,000; and service fees amount to about$20/month.On-Board Computers(OBCs)Cadec Systems Inc.; IBM; Norand; Qualcomm, Inc.; RockwellInternational.OBCs range from $200 to $3,000.Routing andDispatching SoftwareCAPS; Dialog Systems Division; Dis-Patch; Easy Street Software;Etak, Inc.; Leaseway Technology; Logistics Systems Engineering;MicroAnalytics; Qualcomm, Inc.; Roadnet Technologies;RoadShow RTSI; STSC.A basic software package located at the dispatch office costsabout $3,000.

APPENDIX ESELECTED MARKET SEGMENTS: ANALYSES ANDTYPOLOGIESPROCESSED FOODSlightly more than half of processed foods trucks operate locally; about 40 percent operateregionally and about 13 percent operate nationally. The routing of trucks operating nationally andregionally is more variable than is the routing of local trucks.Geographic Range and Fleet SizeIn the I-95 states, approximately 57,900 trucks are carrying processed food (see Figure E-1).Slightly more than half (approximately 29,300) of these trucks operate locally, while 40 percent(approximately 21,200) operate regionally, and 13 percent (approximately 7,300) handle long-haul(national) shipments. Relative to other products, these trucks are fairly evenly distributed amongthe various fleet size categories.Route Variability and Time SensitivityBased on conversations with food distributors, a large percentage of the processed food trucksoperating nationally and regionally are engaged in moving truck loads of single (or highly similar)products from production facilities (e.g., canning, freezing and bottling plants) to warehouse anddistribution facilities. On the local level, however, each truck carries a variety of different processedfoods to stores. Because of this difference in the composition of cargo, the routing of localtrucks is less variable than that of national or regional trucks.When processed food producers alter their production schedules because of fluctuating demandor seasonal variations, this causes the routing and scheduling of regional and national truck-loadcarriers to change, but production changes are less likely to affect the routing of local trucks.Instead, there are changes in the composition of local trucks' loads. For example, although longhauland regional movements of canned fruits from California may increase sharply during thesummer, local delivery routes or schedules do not change significantly; local trucks simply maycarry more canned fruit during summer months.Processed food trucks operating in smaller fleets have more variable routing than those in largefleets because smaller fleets are less able to dedicate trucks to specific routes. Among regionalPage E-1

and national fleets, the percentage of trucks operating on variable routes ranges from 25 percentamong the larger fleets (20 or more trucks), to 50 percent among the smaller fleets (fewer than 20trucks). At the local level, these estimates change slightly; five percent of trucks in large fleets,and 25 percent of trucks in small fleets operate on variable routes.Most processed foods have relatively long shelf lives, and typically are stored in large quantities.Therefore, deliveries of processed food are not highly time-sensitive. On the local level, however,a large number of deliveries are of time-sensitive foods with a short shelf life (e.g., milk andbread) which must be delivered on a frequent or daily basis. Consequently, it is estimated thatonly five percent of processed food trucks operating regionally and nationally are making timesensitivedeliveries, while 25 percent of locally operating processed food trucks are making timesensitivedeliveries.BUILDING MATERIALSSmall local fleets (under 20 power units), dominate the building materials segment. Local operationsare more variable and more time sensitive than regional or national operations.Geographic Range and Fleet SizeApproximately 120,300 trucks are carrying building materials in the I-95 corridor states (seeFigure E-2). More than 80 percent of these trucks (approximately 102,200) operate locally. Atevery level of geographic range, small fleets are dominant. For example, over 80 percent of thetrucks that operate locally do so in fleets with fewer than 20 power units.Route Variability and Time SensitivityTrucks carrying building materials at the national and regional levels tend to operate on fixedroutes. These trucks are delivering materials to storage and distribution facilities, rather than toindividual construction sites. At the local level, the situation reverses; because most trucks aredelivering to individual construction sites, they operate on highly variable routes. As with processedfood, smaller fleets experience greater route variability than do larger fleets. Thus, it isestimated that at the national and regional levels, five percent of building materials trucks in largefleets (100 or more trucks) operate on variable routes, and 25 percent of trucks in smaller fleets(fewer than 100 trucks) operate on variable routes. At the local level, 75 percent of trucks in largefleets and 95 percent of trucks in smaller fleets operate on variable routes.Page E-2

Figure E-1Page E-3

Figure E-2Page E-4

National and regional deliveries of building materials are not time sensitive because these materialsare generally stockpiled in large quantities. At the local level, trucks are delivering buildingmaterials to individual construction sites, so delivery routes change weekly or even daily. Furthermore,because the late delivery of building materials to a construction site may delay theentire job, local delivery of building materials is highly time sensitive. Therefore, it is estimatedthat at the national and regional levels, five percent of building materials trucks in large fleets and25 percent of trucks in smaller fleets are making time-sensitive deliveries. Locally, 75 percent oftrucks in large fleets and 95 percent of trucks in small fleets are estimated to operate on timesensitiveschedules.LIQUID PETROLEUMThe majority of petroleum tankers operate locally, in small fleets. Most tankers are on fixedroutes, and most of their deliveries are not time sensitive.Geographic Range and Fleet SizeApproximately 31,000 petroleum tankers are based in the I-95 coalition states (see Figure E-3).Of this total, 76 percent (approximately 23,700) operate at the local level (i.e., within 50 miles oftheir home bases). These local operators are primarily home heating oil distributors and gasolinetankers supplying service stations within metropolitan areas. Almost all of the remaining petroleumtankers operate regionally (i.e., at a range of 50 to 200 miles from their home bases). Thesetankers are moving products from regional supply facilities to service stations, heating oil dealers,and other local destinations. At all operating ranges, the majority of petroleum tankers operate infleets of fewer than 20 trucks.Route Variability and Time SensitivityThe majority of petroleum delivery routes are fixed. Most tankers make the same deliveries, inthe same order, on a regular schedule. However, some differences emerge in an examination ofhow differences in fleet size affect route variability. Companies with large fleets are able to assignspecific trucks to specific routes, thereby maintaining fixed routes. Companies with small fleetsdo not have this option; they must dispatch trucks in a more variable fashion - one route one day,a different route the next. Thus, it is estimated that in fleets of more than five trucks, 75 percent ofthe trucks operate on fixed routes, whereas in fleets with five trucks or fewer, 50 percent of theroutes are fixed.Page E-5

Petroleum is not a particularly time-sensitive commodity because it is always stored in large quantitiesand can be held for long periods. Therefore, petroleum tankers have a fairly flexible deliveryschedules; in most cases, a delay of one or two days will not create critical problems. The exceptionto this is home heating oil dealers, who, during winter months, frequently respond to emergencycalls from residential customers who have used up their oil before their regular deliverydate. In these cases, petroleum delivery is highly time sensitive. Thus, it is estimated that 25percent of local petroleum deliveries are time sensitive, while only five percent of regional andnational petroleum deliveries are time sensitive.Page E-6

Figure E-3Page E-7

APPENDIX FOTHER INDUSTRY SEGMENTS: TYPOLOGIESFigures F-1 through F-10 present the typologies for the following market segments:♦Principal products:• General freight/mixed cargo;• Household goods moving companies;• Refuse; and• Fresh farm products.♦Major uses/industries:• Wholesale trade;• Manufacturing, refining, and processing;• Retail trade;• Construction;• Utilities; and• Agriculture.Page F-1

APPENDIX GSUMMARY OF MOTOR CARRIER ROUTING AND DISPATCHINGPROCESSESThis section briefly describes the routing and dispatching processes employed by each of themotor carriers interviewed for this task. In addition, a routing and dispatching decision wheel wasprepared for each fleet, illustrating the process by which these decisions are made.A-P-A TransportA-P-A Transport is a for-hire, less-than-truckload carrier specializing in the transport of generalcommodities. A-P-A’s activities consist of a daily pick-up and delivery operation and a linehauloperation. A-P-A has break-bulk facilities located throughout the Northeast, and is a heavy userof Interstate 95. Currently, A-P-A is making the transition from a second day carrier to an overnightcarrier.Figure G-1 provides an overview of A-P-A’s routing and dispatching operations. A-P-A dispatchescity pick-up and delivery vehicles in the early morning; most of the routing and dispatchingwork is required for the linehaul portion of the company’s operation due to the fixed-routenature of the city pick-up and delivery operation. Dispatchers make projections of inbound freightvolumes as part of developing routing plans for their nightly linehaul operation. Other factors consideredwhen developing the linehaul dispatch plan include load destination, driver availability,equipment availability, traffic advisories (e.g., road closures, etc.), and backhaul opportunities. Atthe end of the daily pick-up and delivery operation, dispatchers re-examine the linehaul dispatchplan and make adjustments as required to compensate for fluctuations in incoming freightvolumes.Capitol Trailways – Routing and Dispatching OverviewCapital Trailways provides fixed-route intercity bus service and charter service for tour groups.Approximately 60 percent of Capitol’s operation is comprised of fixed-route service; 40 percent oftheir business is charter work.Several factors are considered by Capitol’s route planners (see Figure G-2). Their primary goal isto ensure that enough buses are available to meet their fixed-route obligations. If there are busesto spare after assigning them to fixed-route operations, planners will consider charter requests.The process for routing and dispatching charter buses includes reviewing the proposed origin andPage G-1

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destination of the charter request; estimating the charter mileage (this estimate is used to determinethe cost of the charter); determining the number of overnights that will be required; consideringspecial equipment requests; reviewing driver availability (including hours-of-serviceavailability); and ensuring that buses are cycled through the preventive maintenance program onschedule.J.F. Fick, Inc. – Routing and Dispatching OverviewJ.F. Fick, Inc. is an independent distributor for Anheuser-Busch based in Stafford, Virginia. Fick isthe sole distributor of Anheuser-Busch products in five counties in the Central/Southern Virginiaarea. In addition, Fick operates dedicated trucks which shuttle Anheuser-Busch products fromtheir breweries in Newark, New Jersey and Williamsburg, Pennsylvania to Fick’s short-termwarehouse facility located in Stafford, Virginia. Fick’s trucks are assigned to specific fixed routes,whereby customers receive shipments every three-to-five days.Only limited routing and dispatching are necessary at Fick, due to the fixed-route nature of theiroperation (see Figure G-3). Occasionally, Fick receives emergency requests from clients for arush shipment (due to product shortages at the store). The four decision factors which influencevehicle routing and dispatching at Fick include estimates of demand for customers (i.e., theamount of product they require); special delivery requests from customers; equipment availability;and loading dock availability (i.e., at supermarkets they are assigned unloading times).Interstate Van Lines – Routing and Dispatching OverviewInterstate Van Lines is a national moving company, operating in the 48 contiguous states. Themajority of Interstate’s operation is on the East Coast; 25 percent of their operation is along theI-95 corridor. Interstate relies on company drivers, as well as owner/operators. In addition,Interstate has agreements with several other moving companies (e.g., Allied, North American),whereby these companies absorb workload overflows.Routing and dispatching at Interstate is done manually; this process is illustrated in Figure G-4.Dispatchers or route planners review customer pick-up and delivery dates, load size (measured inweight), and equipment availability. After considering these factors, route planners identifyopportunities to combine customers and select “preferred customers” based on opportunities tocombine several clients (i.e., it is more profitable for them to combine several customers destinedfor the same geographic region). Customers that appear to be less appealing from a profit perspectiveare offered to other companies in the partnership (e.g., Allied, North American).Page G-4

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National Freight – Routing and Dispatching OverviewNational Freight is a for-hire, truckload carrier located in Vineland, New Jersey. National’s largestcustomers include Owens Corning, Progresso Foods, Proctor & Gamble, and Ames DepartmentStores. The majority of National’s operation is within 275 miles of their base of operation and isprimarily next day service.National’s routing and dispatching decision wheel is provided in Figure G-5. Several factors influencerouting and dispatching decision making, including driver availability (i.e., whether enoughcompany drivers are available to meet demand), equipment availability, distance of shipment, theability to minimize driver “away time,” and driver’s hours-of-service availability. Estimated time ofarrival is based on the assumption that the truck will maintain an average operating speed of 40miles per hour.New England Motor Freight – Routing and Dispatching OverviewNew England Motor Freight (NEMF) is a for-hire, less-than-truckload carrier that hauls generalfreight. NEMF’s operation consists of a daily pick-up and delivery operation and a linehaul operation.NEMF has facilities located throughout the Northeast, and is a heavy user of the I-95 corridor.Eighty-five percent of NEMF’s business is overnight; 15 percent is second day service.NEMF dispatches city pick-up and delivery vehicles in the early morning; most of the routing anddispatching work is required for the linehaul portion of the company’s operation (i.e., city pick-upand delivery operation is primarily fixed route). Dispatchers project inbound freight volumes whendeveloping routing plans for their nightly linehaul operation. Additional factors considered whendeveloping the linehaul dispatch plan include equipment availability, driver availability, drivershours-of-service availability, and travel conditions (monitored by dispatcher using AcuWeather).Figure G-6 illustrates NEMF’s routing and dispatching operations.Paul’s Trucking Corporation – Routing and Dispatching OverviewPaul’s Trucking Corporation (PTC), is the exclusive transportation provider for Pathmark Stores.Primarily a truckload (TL) operator, Paul’s also provides limited less-than-truckload (LTL) service.The majority (85 to 95 percent) of PTC’s operations are within a radius of 15 to 200 miles of theirbase of operations. PTC picks up goods at Pathmark’s suppliers and delivers them to allPathmark stores.Page G-7

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PTC’s dispatching is done at their Avenel, New Jersey facility (see Figure G-7). The key decisionfactors which the dispatcher considers when dispatching trucks include the load size (e.g., howmuch freight must be picked-up at a particular vendor), the time sensitivity of the shipment,equipment availability, driver availability, and current traffic conditions. Traffic advisories and construction/incidentinformation for the NY/NJ area are received in PTC’s dispatch center fromTRANSCOM via a printing pager.Peter Pan Bus Lines – Routing and Dispatching Overview(charter service)Peter Pan provides limited charter service for tour groups. Routing and dispatching for charterservice is coordinated by the central dispatcher in Springfield, MA. Several factors influencecharter routing and dispatching including: demand for charter service, equipment availability (e.g.,whether buses are still available after meeting fixed-route requirements), charter origin and destination,number of overnights required, and driver availability (including hours-of-service availability).Figure G-8 illustrates Peter Pan’s routing and dispatching process for charter/tour services.Peter Pan Bus Lines – Routing and Dispatching Overview(intercity bus service)Peter Pan provides intercity fixed-route bus service throughout the I-95 corridor. They have terminalslocated in several major cities including Springfield, MA; Hartford, CT; New York City;Philadelphia, PA; Washington, D.C.; and Baltimore, MD. In addition, Peter Pan leases terminalspace at facilities located in smaller Northeast cities (e.g., Syracuse, NY).Peter Pan has a centralized dispatch facility located in Springfield, MA. The routing and dispatchingdecision wheel for Peter Pan’s Intercity, fixed-route operations is provided in Figure G-9.The dispatcher must consider the projected fixed-route demand for each of Peter Pan’s terminals,review equipment availability at each terminal (and shift buses to terminals that lack sufficientequipment), and review driver availability at each terminal (making adjustments as needed). Dispatchersat each terminal are responsible for tracking scheduled arrival and departure times, aswell as schedule adherence for their facility. Delays or problems with the equipment or drivers arecommunicated by the terminal dispatchers to the central dispatcher in Springfield. If adjustmentsare required, they are made by the central dispatcher.Red Lion Bus Company – Routing and Dispatching OverviewThe Red Lion Bus Company provides charter service for tour groups, as well as school bus serviceunder contract to several local communities. The routing and dispatching decision wheelPage G-10

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provided in Figure G-10 reflects Red Lion’s charter work. The routing and dispatching processbegins with a request for charter service. Route planners review the proposed origin and destinationof the charter request, estimate trip mileage (using an atlas and roadmaps), determine thenumber of overnights, determine whether or not equipment is available for the days requested bythe tour group, and, as the charter date approaches, review the availability of drivers (includinghours-of-service availability).Virginia Tank Lines – Routing and Dispatching OverviewVirginia Tank Lines (VTL) is a private carrier based in Fredericksburg, Virginia. VTL hauls oil,gasoline, and asphalt to companies based in the Virginia/Maryland area. VTL’s fleet primarilyserves oil companies, government installations, service stations, and asphalt plants. Most customersare served every two days by fixed-route vehicles.Figure G-11 illustrates the routing and dispatching process at Virginia Tank Lines. Given thefixed-route nature of their operation, VTL relies on a manual routing and dispatching system.Typically, vehicles are dispatched at 4:00 a.m. to avoid congestion, and return in the midafternoon.Dispatchers must consider the daily equipment requirements to meet the demands oftheir fixed-route clients. Dispatchers also must consider the number of drivers required to operatethese vehicles. If after meeting these requirements, “special” delivery requests are received, dispatcherswill begin this process again (i.e., they will review load destination, equipment availability,and driver availability).Wills Trucking – Routing and Dispatching OverviewWills Trucking specializes in hauling hazardous materials. Approximately 70 percent of the company’sbusiness involves hauling trash from transfer facilities to trash disposal sites in theNortheast (primarily in Western Pennsylvania and in upstate New York). This work is performedunder contract to cities and towns. The remaining 30 percent of Wills business involves shorttermor one-time hazardous materials movements (e.g., moving contaminated dirt from one facilityto another).Dispatchers at Wills consider several factors when dispatching vehicles including the origin anddestination of the load, the type of equipment required for the individual job (e.g., tank truck oropen container truck, etc.), equipment availability, driver availability (including hours-of-service),and whether or not the materials being transported are restricted from certain routes. Figure G-12illustrates Wills routing and dispatching operations.Page G-14

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APPENDIX HATIS: MODEL DESCRIPTION AND SERVICE MARKETABILITYMODEL SELECTIONTwo types of models – binary choice and log of the odds – were used to analyze the carrierresponses. Together, these models enable an understanding of the attributes that are mostdesired by carriers, and the likelihood of an ATIS purchase by particular carriers.Binary choice models were used to estimate how carriers chose between the two ATIS options.For these models, utility functions, which are equations that measure the attractiveness of analternative, were estimated as a function of the service attributes for each of the alternatives. Carriersare more likely to choose the alternative with the higher utility function. By estimating utilityfunctions, it is possible to identify those service attributes that most influence a carrier’s choice,and how those attributes influence the probability that a carrier will select an ATIS alternative.Only the 237 correctly completed choice experiments were used for this analysis.The log of the odds model was used to analyze the probability that the carrier would purchasetheir preferred alternative. The probability of purchasing the preferred ATIS alternative wastransformed into the “log of the odds” 1 for use as the dependent variable in regression equations.The transformation converts the probability of choosing ATIS into the utility of the ATIS alternative.This allows the log of the odds model and the binary choice model to be compared on equalfooting. The data from the 237 correctly completed choice experiments, plus the 82 “mixed andmatched” choice experiments were used for this analysis.The log of the odds model also was used to estimate the utility of selecting the preferred ATISpackage over that of not selecting an ATIS package at all. As was the case with the choiceexperiment, this choice depends on the ATIS attributes. However, the probability of purchasealso depends upon the carrier’s characteristics because certain types of carriers are more likelythan others to have an interest in ATIS. These effects are captured by the log of the odds model.1 Log of odds = ln(prob/(1-prob)), where prob is the probability that the carrier would purchase the ATIS package.Page H-1

SERVICE VARIABLE PREFERENCES: USER NEEDSAnalysisCarriers were asked to select either Option A or Option B for each choice exercise. The binarychoice model was used to understand why carriers preferred one of the choice experiment alternativesto another. Analysis of these choices using a binary choice model identifies the preferredATIS attributes. For the binary choice models, the utility function was estimated as follows:Util = (.98*Both) – (.24*Update/Hr) + (.69*SIR Every 4 Hrs) – (.0006*Equipment Cost) –(.015*Service Cost), where:♦Util is the utility of the option;♦Both = 1 when both the driver and the dispatcher receive ATIS information, 0 Otherwise;♦Update/Hr = The number of times per hour that the database is updated;♦SIR Every 4 Hrs = 1 when there are System Initiated Responses every 4 Hours,0 Otherwise;♦Equipment Cost = the one time equipment cost for ATIS; and♦Service Cost = the monthly service cost for ATIS.The probability of choosing each alternative can be estimated using the following equations:P(1) = e U1 /(e U1 +e U2 ),P(2) = e U2 /(e U1 +e U2 ),where:♦ P(1) is the probability of choosing Option 1;♦ P(2) is the probability of choosing Option 2;♦e is the exponential function;Page H-2

♦U1 is the utility of Option 1; and,♦ U2 is the utility of Option 2.It is important to note that the probability of choosing one alternative depends not only on the featuresof that alternative, but also on the features of the other alternative.When a variable’s coefficient is positive, the presence (or increase in the level of) that attributeincreases the utility of the service to the carrier, thereby increasing the likelihood that the alternativewill be chosen. When a variable has a negative coefficient, it indicates that the presence orincrease in the level of the attribute reduces the utility of the service to the carrier, therebyreducing the likelihood that the alternative will be selected.SERVICE MARKETABILITYAnalysisThe log of the odds model was used to estimate the likelihood that carriers actually would purchaseATIS services. This likelihood depends not only on the ATIS features, but also on theoperational characteristics of carriers considering the purchase. For example, it is reasonablethat a carrier with extensive operations in the I-95 corridor would be more likely to purchase anI-95 ATIS service than a carrier who has minimal operations in the corridor. The log of the oddsmodel captures these effects.The utility associated with purchasing the ATIS is estimated by the following function:U(P) = 1.05 + (0.31*Ub inary) + (.56*Regional Range) + (.33*Corridor Range) – (.27*Paper Media) +(.005*# of Power Units) – (.007*# Contract Employees) – (.04* # Terminals) + (.6158* Extent ofOperations) – (.–007*Range GT 200 Miles) + (.51*Computer Systems) + (.79*On Board Systems)+ (1.204*Other ATIS) + (.77*Operate in NH) + (2.55*Operate in NJ) + (.89*Operate in RI) –(2.34*Operate in MA) – (2.05*Operate in PA) – (.98*Operate in MD), where:♦U(P) = utility to purchase ATIS;♦U binary = Estimated Utility of ATIS alternative (from binary choice model);♦Regional Range = 1 if ATIS has Regional Geographic Range, 0 Otherwise;Page H-3

♦Corridor Range = 1 if ATIS has Corridor Geographic Range, 0 Otherwise;♦Paper Media = 1 if ATIS has Paper Media Output, 0 Otherwise;♦# Power Units = the number of power units operated by carrier;♦# Contract Drivers = the number of drivers under contract to carrier;♦# Terminals = the number of terminals operated by carrier;♦Extent of Operations = 1 if Limited Operations, 2 if Moderate Operations, 3 ifExtensive Operations in I-95 Corridor;♦Range GT 200 Miles = percent of fleet operating further than 200 miles from the baseof operations;♦Computer Systems = 1 if Computer Systems are Currently Used for Fleet Routingand Dispatching, 0 Otherwise;♦On Board Systems = 1 if On-Board Systems Used for Communications andRecordkeeping, 0 Otherwise;♦Other ATIS = 1 if Company Receives any Advanced Traveler Information at CurrentTime, 0 Otherwise;♦Operate in NH = 1 if Company Has Vehicles Operating in New Hampshire, 0 Otherwise;♦Operate in NJ = 1 if Company Has Vehicles Operating in New Jersey, 0 Otherwise;♦Operate in RI = 1 if Company Has Vehicles Operating in Rhode Island, 0 Otherwise;♦Operate in MA = 1 if Company Has Vehicles Operating in Massachusetts, 0 Otherwise;♦Operate in PA = 1 if Company Has Vehicles Operating in Pennsylvania, 0 Otherwise; and♦Operate in MD = 1 if Company Has Vehicles Operating in Maryland, 0 Otherwise.When a variable has a positive coefficient, the likelihood of purchasing ATIS increases as thevariable increases. When the variable has a negative coefficient, the likelihood of purchasingATIS is diminished as the variable increases.Page H-4

The probability that a carrier will purchase a proposed ATIS configuration can be estimated withthe following equation:P(Purchase ATIS) = e U(P) /(1+e U(P) ), where:♦P(Purchase ATIS) = the Probability of Purchasing the ATIS;♦e = Exponential Function; and♦U(P) = Utility of Purchasing ATIS.Page H-5