Hyperloop One plans to undercut GCC air freight market
Hyperloop One senior vice president Nick Earle says his company aims to acquire almost half of the GCC region’s US$12 billion multimodal transport market, with a particular focus on competing with air freight.
Earle was speaking at the Global Manufacturing and Industrialisation Summit this week, and told delegates that when fully operational, Hyperloop One would create new opportunities in manufacturing, warehousing and supply chain distribution.
"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," said Earle. "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," he added.
Earle said the sectors would benefit from increased capital due to a 25 percent reduction in finished goods inventories; access to larger talent pools with the same commute time; up to 80 percent savings on real estate costs; shorter lead times; reduced freight spend; and a big reduction in CO2 emissions.
DP World became a significant investor in Hyperloop One in October last year following a reported US$50 million deal for continued research and development. This followed an August signing of an MoU to analyse the value of using Hyperloop systems to move containers from Jebel Ali Port to a new inland container depot in Dubai.
Earle added that his company could acquire 100 percent of the GCC's annual airfreight traffic worth US$7 billion, 22 percent or US$3 billion of the region's road and rail market, and 13 percent of its maritime industry valued at US$2 billion.