Wednesday, March 29, 2017

Hyperloop Promises to Change the World’s Freight and Manufacturing Industries

Test Bed Being Built in Nevada
Shipping News Feature
MIDDLE EAST – Speaking as the closing key note at the Global Manufacturing and Industrialisation Summit (GMIS) in Abu Dhabi, Hyperloop One's  Senior Vice President of Global Operations, Nick Earle, said that he believed that the projected Hyperloop system had the potential to grab a substantial share of the freight market in the Gulf Cooperation Council (GCC) and shake-up the regional supply chain with the ability to travel between the gulf states of the GCC in under an hour. During the keynote, Earle said:

“As the only company in the world building an operational Hyperloop system, Hyperloop One is focused on creating a new mode of transportation to move people and cargo. Hyperloop One changes everything. We're committed to enabling disruption to create new opportunities in manufacturing, warehousing and supply chain distribution. Hyperloop will drive significant value for a wide range of businesses and reinvent transportation as we know it.”

The company, which features UAE-based trade enabler DP World as one of its major investors, is currently building a test bed in Nevada to trial its revolutionary transportation system. Hyperloop One states that they project their system, which runs via electric motors in a sealed tube which has most of the air removed to minimise friction, will run at 1080 km/h - three times the speed high speed rail at two thirds the cost. This, they believe, will have a tangible impact on current and future businesses and society with Hyperloop’s transforming transportation in as radical way as the first railways.

In the GCC, the freight transportation market was worth approximately US$35 billion in 2016. Of this, Hyperloop One believe they will have an addressable share of around US$12 billion. Hyperloop One hopes to compete for 100% of air freight in the GCC, a $7 billion market; 22% of the surface freight – which is approximately $3 billion in road and rail freight; and 13% of the maritime freight, equating to roughly $2 billion. As UAE-based trade enabler DP World is a major investor in the company it certainly seems feasible that such ambitious figures are achievable. Harj Dhaliwal, Senior Vice President, Parsons – a partner of Hyperloop One, said:

"Hyperloop One will break down time and distance to rebalance economies and enable people, goods and services to move faster. Parsons is providing expertise and intrinsic knowledge of regional transportation requirements in support of Hyperloop One on a number of projects around the world. Hyperloop One’s progress is extraordinary and it will happen sooner than you think."

The keynote, entitled ‘Hyperloop and Manufacturing – This Changes Everything,’ highlighted the ways in which the transportation and manufacturing sectors will benefit from the high-speed system, including increased capital due to reducing finished goods inventories by 25%, access to 10 times larger talent pools with the same commute time and saving up to 80% on real estate costs, as well as shorter lead times, reduced freight spend and slashed Carbon Dioxide emissions.