Budgeting the Adoption of Sensors on Connected Trains

Abstract

Railroads can save millions of dollars by deploying multi-sensor track scanners on connected trains to detect track and roadbed problems that could cause accidents. However, uncertainties about performance and return-on-investment impeded the development and deployment of such sensor systems. This research develops a budget model that both manufacturers and railroads can use to decide on a suitable tradeoff between price affordability and achievable performance. A case study of five Class 1 railroads demonstrates that a payback within two years is achievable at $4,000 per device and an annual maintenance cost of one-quarter the system deployment cost.