ABU DHABI: March 28, 2017. Speaking at the Global Manufacturing and Industrialisation Summit this week, Hyperloop One senior vice president Nick Earle said his company aims to acquire US$12 billion of the GCC region's US$35 billion multimodal transport market.
When fully operational, Hyperloop One claims the disruptive effect of traveling between GCC cities in under an hour will create new opportunities in manufacturing, warehousing and supply chain distribution.
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.
In October last year DP World announced it had become a "significant investor" and Board member of Hyperloop One following a reported US$50 million deal for continued research and development. This followed an August signing of an MoU to analyze the value of using Hyperloop systems to move containers from Jebel Ali Port to a new inland container depot in Dubai (pictured: artist rendering).
"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.
Based on McKinsey 2016 data, Earle thinks 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.
During the summit Hyperloop announced the launch of its partner program designed to add expertise in Hyperloop solutions, increase revenue, build industry recognition and provide inside access to understand and influence Hyperloop One's strategy.
Harj Dhaliwal, a senior vice president at the Parsons engineering and construction company said his organization is already providing Hyperloop with expertise and knowledge of regional transportation requirements on a number of projects worldwide.
"Hyperloop One's progress is extraordinary and it will happen sooner than you think," he declared.