Richard Branson-backed Virgin Hyperloop One and Dubai-based port operator DP World have launched a new company to build ultra high-speed cargo delivery systems.
The Joint Venture, DP World Cargospeed, aims to use the futuristic technology of Hyperloop to deliver cargo, cutting both speed and cost manifold.
The new company will transport high-priority, time-sensitive goods including fresh food, medical supplies, electronics, and more. It will expand freight transportation capacity by connecting with existing modes of road, rail and air transport.
“We believe the future of cargo is going to change dramatically in the coming years. The capabilities that the new company can bring will have a positive impact on supply chains across markets; manufacturers will be able to reduce their inventory costs significantly. We're looking to enable Amazons and Alibabas in various parts of the world,” Harj Dhaliwal, MD, Middle East & India, Virgin Hyperloop One, told Fortune India.
“We are not looking at heavy cargo, like metal, rocks and steel. We're focusing on retail items. Even perishable items like food available exclusively in one place, this can help items like that reach more customers," he added.
DP World has in the past joined the board of California-based startup Hyperloop One, and invested $50 million in it. Over the years, the terminal operator has been looking to diversify its revenue base from container handling, and has invested in logistics and supply chain solution along with disruptive technology like Hyperloop.
“We have made a significant investment in Virgin Hyperloop One because we see the need for a hyperloop-enabled cargo network to support rapid, on-demand deliveries globally," Sultan Ahmed Bin Sulayem, DP World Group Chairman and CEO, said in a statement.
"We believe in Virgin Hyperloop One’s long-term vision. They are the right partner to shape the future of global logistics, and we look forward to developing the first DP World Cargospeed systems with them," he added.
The concept of Hyperloop gained a lot of traction after Elon Musk’s SpaceX published a white paper in 2013. In this futuristic mode of transportation, a pod-like vehicle is propelled through a near-vacuum steel tube at higher than airline speed, reducing travel time manifold. Hurdles to operationalise the system remain. Musk is the founder, CEO and lead designer at Space Exploration Technologies (SpaceX), which is involved in the development and manufacturing of advanced rockets and spacecraft for missions to and beyond Earth orbit.
DP World operates six container terminals in India.
In Feburary, Hyperloop One signed a preliminary agreement with the government of Maharashtra to build a Hyperloop that would traverse from Mumbai to Pune in 25-minutes. A drive to Pune take at least three hours. (For more details and insights read a story here.)
