The Lockheed airship is helped aloft by helium gas bladders, but needs forward momentum to stay airborne. Courtesy Lockheed Martin
The Lockheed airship is helped aloft by helium gas bladders, but needs forward momentum to stay airborne. Courtesy Lockheed Martin

Lockheed Martin’s airship needs no airport to deliver hundreds of tonnes in Africa



A novel concept to end Africa’s logistics deficit is being proposed by the US defence company Lockheed Martin, which intends to use airships to deliver payloads of hundreds of tonnes into the interior.

Under the slogan “No Roads, No Problem”, the Hybrid Airships division of the group is building an airship that will pick up and deliver cargo where no formal airports exist.

“It will land on water, sand, a field, even ice,” said Rob Binns, the chief executive of Hybrid Airships. The prototype had already proven itself in Alaska, in the wildest of conditions.

Mr Binns was speaking on the sidelines at the African Mining Indaba, where the company hoped to draw interest from mining companies that were struggling with logistics difficulties across the rugged continent. Oil and gas companies were also being approached. “This is a dedicated cargo carrier, so it’s built with moving material and equipment in mind,” Mr Binns says.

The first airship will be completed in 2018 and plans are underway for a 90 tonne-lift model, which would have similar lifting capacity to a cargo-configured Boeing 747. Eventually, a 500 tonne-lift model will be built, which would put it in the same category as an average cargo ship.

“It will theoretically be possible to load a cargo in central China and, using the earth’s curvature, fly it to mid-western USA in two days. Much quicker and cheaper than first railing or trucking it to port, shipping across the Pacific, offloading again for road or rail,” Mr Binns says.

The concept may seem eccentric – the airship looks like a cheery character from a Pixar children’s cartoon – but it has behind it the company developing the F-35, the most advanced fighter aircraft. It was a spin-off of the fighter programme, and draws on its technology.

“Essentially Lockheed have taken the same technology they are putting into the F-35, and applied it to the problem of moving cargo around quickly and cheaply. The flight control system is basically straight out of the F-35, which will be used to plot course, navigate and fly,” says Mr Binns.

The airship is helped aloft by helium gas bladders, but needs forward momentum to stay airborne. The design of the gasbag emulates that of an aircraft wing, giving lift when its four V6 diesel motors are running.

At a top speed of about 110 kilometres per hour, it has a range of 2,600 kilometres. A more modest speed of 50kph should allow it to circle the globe without landing.

When it does return to earth, it uses a hovercraft mechanism – three blowers where wheels should be – to suck the ground to hold it fast. The thrust on these can be reversed to manoeuvre it on the ground.

Even if the engines fail in flight, the airship will not hit the ground with much of a bump. “It will fall at a rate slower than that of a man in a parachute,” Mr Binns says.

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What is graphene?

Graphene is a single layer of carbon atoms arranged like honeycomb.

It was discovered in 2004, when Russian-born Manchester scientists Andrei Geim and Kostya Novoselov were "playing about" with sticky tape and graphite - the material used as "lead" in pencils.

Placing the tape on the graphite and peeling it, they managed to rip off thin flakes of carbon. In the beginning they got flakes consisting of many layers of graphene. But as they repeated the process many times, the flakes got thinner.

By separating the graphite fragments repeatedly, they managed to create flakes that were just one atom thick. Their experiment had led to graphene being isolated for the very first time.

At the time, many believed it was impossible for such thin crystalline materials to be stable. But examined under a microscope, the material remained stable, and when tested was found to have incredible properties.

It is many times times stronger than steel, yet incredibly lightweight and flexible. It is electrically and thermally conductive but also transparent. The world's first 2D material, it is one million times thinner than the diameter of a single human hair.

But the 'sticky tape' method would not work on an industrial scale. Since then, scientists have been working on manufacturing graphene, to make use of its incredible properties.

In 2010, Geim and Novoselov were awarded the Nobel Prize for Physics. Their discovery meant physicists could study a new class of two-dimensional materials with unique properties. 

 

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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