Virgin Hyperloop Partners with DP World to Launch Logistics Startup
Richard Branson’s Virgin Hyperloop One and UAE based firm DP world are partnering to launch a new joint venture – the DP World Cargospeed. The move comes two years after the high-speed transportation technology developer backed DP world with a $50 million financing.
The aim of the new company will be to more efficiently deliver palletized cargo by combining hyperloop’s high-speed transportation with the new logistics technologies to further accelerate the speed of deliveries in the routes between Mumbai and Pune in India, UAE and in Saudi Arabia which are the planned routes of Virgin Hyperloop One.
The announcement was made by DP World CEO Sultan Ahmed Bin Sulayem and Richard Branson, Chairman of Virgin Hyperloop, among much fanfare. The merger will see a new company that will likely be the promise of performance in the future. At present, the Virgin Hyperloop track is just limited to India and covers just 10 kilo meters.
Even though hyperloop technologies are not much promising at the moment, many start-up companies are jumping the bandwagon and most are backed by corporate companies which presents a compelling vision for the future of transportation. China is also pouring billions into build what it calls the Silk Road in a bid to connect its economic engine with the world. All these suggest that there is a need for quick and efficient logistics services and also presses the need for more environmentally friendly logistics.
Announcing the new company, Branson said, “The global growth of e-commerce is driving a dramatic shift in both consumer and business behaviour. On-demand deliveries are a novelty today. Tomorrow it will be the expectation.” “DP World Cargospeed systems powered by Virgin Hyperloop One will enable ultra-fast, on-demand deliveries of high-priority goods and can revolutionise logistics, support economic zones, and create thriving economic mega regions,” he added.
Hyperloop transportation works by shooting a container through a big tube at a very high speed – at around 300 meters per second. This is much more than the fastest high speed rail which is in use today. The latest technology that is used by Hyperloop uses magnetic levitation to propel pods that are laden with people and/or products through the pneumatic tube with as much less friction as possible.
The new Cargospeed system will allow fast transportation of high-priority goods like medical supplies and time-sensitive goods like fresh food. It will also transport electronics and other goods too and connects with existing modes of rail and road transportation in a bid to expand the freight transportation capacity.