Hyperloop Transportation: Dubai to use technology for high-speed cargo deliveries

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One of the world's leading developers of hyperloop -- a new transportation technology -- has teamed up with authorities in Dubai to create a service specifically for cargo. The American high-speed rail company says the project could revolutionise global trade. Nawied Jabarkhyl has more for us on this.

It's the stuff of sci-fi movies. The ability to travel at up to 1,200 kilometres an hour. Hyperloop has certainly caught the attention of many around the world. And now, Dubai's partnering with one main developer of the technology, to use it for high-speed cargo deliveries.

ROB LLOYD CEO, VIRGIN HYPERLOOP ONE "There's a certain percentage of cargo today that moves at a premium level, that's typically carried on airfreight or express services. It's around only 1 or 2% of the volume but 33% of the value, it's the high-value goods. They must get somewhere quickly."

Enter the DP World Cargospeed. It was launched in Dubai with the help of British billionaire Richard Branson, whose Virgin Group is a key backer of Hyperloop One. The idea is to use the technology - which essentially shoots magnetic pods through a tunnel at ultra-high speeds – to deliver cargo more quickly.

JOSH GIEGEL CO-FOUNDER & CTO, VIRGIN HYPERLOOP ONE "Compared to air, it's going to be eight times cheaper. It's basically the speed of an airplane, for the cost of a truck."

The company claims it can make those savings because the product will be energy-efficient. Unlike planes and trains, it will rely mainly on renewable energy.

NAWIED JABARKHYL DUBAI "Its critics say hyperloop technology is still somewhat of a pipe dream. But, Dubai has been an early backer of the project and a major investor too. Its state-backed port company DP World is now the single largest shareholder in Virgin Hyperloop One."

So far, the U.S.-based startup has signed deals with governments in the United Arab Emirates, Saudi Arabia and India. It says construction of the world's first functioning hyperloop could begin sooner than expected.

ROB LLOYD CEO, VIRGIN HYPERLOOP ONE "We will be starting construction of the India, Pune to Mumbai route in the state of Maharashtra, we'll be starting that in the spring of 2019."

The firm expects that project to be fully operational by 2025. Before then, Hyperloop One faces a number of challenges, from regulation to the billions of dollars of investment it says it'll need to sustain the network. But, if it manages to pull it off, it could reshape our entire concept of travel. Nawied Jabarkhyl, CGTN, Dubai.