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Railroads can save significant sums of money 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 have 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 trade-off between price affordability and achievable performance. A case study of five Class 1 railroads in the U.S. demonstrates that a payback within two years is achievable at U.S.$4000 per device and an annual maintenance cost of one-quarter of the system deployment cost. [ABSTRACT FROM AUTHOR]

Class I railroads in North America collectively invested USUS$11.2 billion to comply with a U.S. federal mandate to deploy positive train control as a form of train protection system. This amount dwarfs the potential savings from accidents the technology could prevent. Therefore, railroads must seek additional benefits. This research contributes simple closed-form models to inform strategies that can leverage the technology deployment by estimating the annual additional net benefits, internal rate of return, and benefit-cost ratio needed for a desired payback period. [ABSTRACT FROM AUTHOR]