Images of the new Cargo Speed hyperloop terminal at Dubai Port. DP World
Images of the new Cargo Speed hyperloop terminal at Dubai Port. DP World
Images of the new Cargo Speed hyperloop terminal at Dubai Port. DP World
Images of the new Cargo Speed hyperloop terminal at Dubai Port. DP World

Virgin Hyperloop cargo network proposed in Dubai to deliver goods 'anywhere in world' within 48 hours


James Langton
  • English
  • Arabic

A revolutionary new transport network that can move goods anywhere in the world in just 48 hours is being proposed for Dubai.

At the heart of the system is a cargo hyperloop developed by Richard Branson’s Virgin Hyperloop and backed by Dubai Ports.

The new venture is called DP World Cargospeed and will provide deliveries at “air speed at the price of transport by land”, said Sultan Ahmed bin Sulayem, the CEO of DP World.

The proposed network would serve both passengers and freight, connecting ports to the supply chain.

Time sensitive goods would be packed in special pods that would replace the traditional shipping containers and could be loaded directly into hyperloop pods.

It is estimated that around one third of the world’s cargo is time sensitive. Backers of the cargo hyperloop say it would take heavy lorries off already congested roads and cut warehouse space by a quarter.

While the market for express and cargo freight is set to reach US$4 trillion worldwide with consumers expecting on-demand services from companies like Amazon, services are limited by airline and airport capacity.

In a mixed-use system, the hyperloop would carry mainly passengers during peak hours, but switch to freight at other times.

Virgin Hyperloop One has currently reached speeds of 400 miles an hour on its test bed in Nevada, using unmanned pods.

It is negotiating projects in three countries: from Mumbai to Pune in India, in Saudi Arabia and the UAE.

The Mumbai projects is likely to be the first to carry actual passengers. Virgin Hyperloop One says it could have the first stretch of a viable network operating by 2021 with a 13 kilometre track in India as a prelude to a full passenger service of around ten times that length.

A rendering of how a hyperloop track could look in Dubai. Courtesy of DP World
A rendering of how a hyperloop track could look in Dubai. Courtesy of DP World

Josh Geigel, the CTO and co-founder of Virgin Hyperloop, described the challenge as “trying to build the airplane, the airport, the air traffic control and the sky. Now we are adding ports."

The announcement follows the first stage of a feasibility study, with planning now moving to the next stage that will include safety and technological elements.

Last December, Dubai Ports was part of the latest round of funding for Virgin Hyperloop One.

Details of the routes are yet to be announced along with a detailed timeline for construction. A working passenger hyperloop, which uses electrical power and a tube pressurised to the equivalent of an aircraft at 50,000 feet, is still in the future.

On Thursday, Dubai’s Roads and Transport Authority denied reports of a hyperloop between Abu Dhabi and Dubai, saying that the advanced transport system was “still under the process of research and development".

They said: “Projects of this magnitude and complexity must be preceded by careful planning and engineering studies.”

Rob Lloyd, the CEO of Virgin Hyperloop One, accepted that getting a system operation would take time.

“Governments are going to expect this to go through a process and the process they expect will be engineering studies and route analysis," he said.

“They are going to want to understand the environmental impact, they want to understand the land that’s available and land that needs to be acquired. So you can’t do this thing in weeks, but you can do them in several years. “

He described the India route as “economically and technically viable,” saying the government was “committed to starting construction of the civil engineering part of the infrastructure in 2019”.

Mr Sulayem said that existing supply chains were often inefficient and led to delays costing billions. “The biggest selling point [of a hyperloop] is time. Time you can’t buy. It is very, very valuable."

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Read more:

Abu Dhabi Hyperloop route announced following Aldar agreement

Hyperloop to transit passengers between Dubai's airports in six minutes

Muslim Council of Elders condemns terrorism on religious sites

The Muslim Council of Elders has strongly condemned the criminal attacks on religious sites in Britain.

It firmly rejected “acts of terrorism, which constitute a flagrant violation of the sanctity of houses of worship”.

“Attacking places of worship is a form of terrorism and extremism that threatens peace and stability within societies,” it said.

The council also warned against the rise of hate speech, racism, extremism and Islamophobia. It urged the international community to join efforts to promote tolerance and peaceful coexistence.

How Tesla’s price correction has hit fund managers

Investing in disruptive technology can be a bumpy ride, as investors in Tesla were reminded on Friday, when its stock dropped 7.5 per cent in early trading to $575.

It recovered slightly but still ended the week 15 per cent lower and is down a third from its all-time high of $883 on January 26. The electric car maker’s market cap fell from $834 billion to about $567bn in that time, a drop of an astonishing $267bn, and a blow for those who bought Tesla stock late.

The collapse also hit fund managers that have gone big on Tesla, notably the UK-based Scottish Mortgage Investment Trust and Cathie Wood’s ARK Innovation ETF.

Tesla is the top holding in both funds, making up a hefty 10 per cent of total assets under management. Both funds have fallen by a quarter in the past month.

Matt Weller, global head of market research at GAIN Capital, recently warned that Tesla founder Elon Musk had “flown a bit too close to the sun”, after getting carried away by investing $1.5bn of the company’s money in Bitcoin.

He also predicted Tesla’s sales could struggle as traditional auto manufacturers ramp up electric car production, destroying its first mover advantage.

AJ Bell’s Russ Mould warns that many investors buy tech stocks when earnings forecasts are rising, almost regardless of valuation. “When it works, it really works. But when it goes wrong, elevated valuations leave little or no downside protection.”

A Tesla correction was probably baked in after last year’s astonishing share price surge, and many investors will see this as an opportunity to load up at a reduced price.

Dramatic swings are to be expected when investing in disruptive technology, as Ms Wood at ARK makes clear.

Every week, she sends subscribers a commentary listing “stocks in our strategies that have appreciated or dropped more than 15 per cent in a day” during the week.

Her latest commentary, issued on Friday, showed seven stocks displaying extreme volatility, led by ExOne, a leader in binder jetting 3D printing technology. It jumped 24 per cent, boosted by news that fellow 3D printing specialist Stratasys had beaten fourth-quarter revenues and earnings expectations, seen as good news for the sector.

By contrast, computational drug and material discovery company Schrödinger fell 27 per cent after quarterly and full-year results showed its core software sales and drug development pipeline slowing.

Despite that setback, Ms Wood remains positive, arguing that its “medicinal chemistry platform offers a powerful and unique view into chemical space”.

In her weekly video view, she remains bullish, stating that: “We are on the right side of change, and disruptive innovation is going to deliver exponential growth trajectories for many of our companies, in fact, most of them.”

Ms Wood remains committed to Tesla as she expects global electric car sales to compound at an average annual rate of 82 per cent for the next five years.

She said these are so “enormous that some people find them unbelievable”, and argues that this scepticism, especially among institutional investors, “festers” and creates a great opportunity for ARK.

Only you can decide whether you are a believer or a festering sceptic. If it’s the former, then buckle up.

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How much do leading UAE’s UK curriculum schools charge for Year 6?
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  2. Kings School Al Barsha (Dubai) – Dh71,905
  3. Brighton College Abu Dhabi - Dh68,560
  4. Jumeirah English Speaking School (Dubai) – Dh59,728
  5. Gems Wellington International School – Dubai Branch – Dh58,488
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*Annual tuition fees covering the 2024/2025 academic year