Shared Value Potential of Transporting Cargo via Hyperloop

Max Werner,Klaus Eissing,Sebastian Langton

doi:10.3389/fbuil.2016.00017

Abstract

This research estimates the shared value created by constructing a hypothetical Hyperloop to transport cargo along 300 km in Northern Germany. Following Porter-Kramer (2011), we identified and evaluated eight factors that create shared value: travel speed, operating costs, safety, noise pollution, air pollution, climate effect/carbon footprint, separation effect/ property efficiency, and maintenance. Using official data compiled by several German institutes and organizations, we conducted comparative analysis to quantify and compare the abovementioned factors for Hyperloop and over-the-road cargo transport in Germany. Then, we monetized the individual and collective benefits of the shared value created by Hyperloop replacing a significant share of cargo transported by truck. Our findings indicate that the hypothetical Hyperloop project in Northern Germany would create €660 to €900 million of shared value annually. Our research method establishes a framework for assessing future transportation projects like Hyperloop, and our findings can be generalized to industrialized nations beyond Germany.

Highlights

When Hyperloop was announced in 2013, the Internet was ablaze over this new, magical form of transportation that promised 1,200 kph speeds (Yarrow, 2013)
When Hyperloop was announced, a similar concept – evacuated tube transportation (ETT) – celebrated its 14th anniversary without significant notice even though its maximum speeds of 4,000 mph far surpass those of Hyperloop, with comparable efficiency (Oster et al, 2011)
The enthusiasm surrounding Hyperloop likely had to do with its originator, Elon Musk

Summary

Introduction

When Hyperloop was announced in 2013, the Internet was ablaze over this new, magical form of transportation that promised 1,200 kph speeds (Yarrow, 2013). Google search requests for “Hyperloop,” at their peak in 2013, outnumbered searches for “Kuehne & Nagel” or even “Dachser” by more than double.. When Hyperloop was announced, a similar concept – evacuated tube transportation (ETT) – celebrated its 14th anniversary without significant notice even though its maximum speeds of 4,000 mph far surpass those of Hyperloop, with comparable efficiency (Oster et al, 2011). The enthusiasm surrounding Hyperloop likely had to do with its originator, Elon Musk. The correlation between search requests for “Elon Musk” and those for “Hyperloop” is a strong 0.8

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Conclusion