US unveils guidance document for Hyperloop regulation

Hyperloop has taken yet another step towards reality with the US Department of Transportation announcing that projects will be eligible for Federal grants and loans. It comes after the US Department of Transportation and the Non-Traditional and Emerging Transportation Technology (NETT) Council issued a guidance document on a clear regulatory framework for hyperloop in the United States.

“This guidance bridges the gap between innovator and regulator, prioritises safety during development without hampering innovation, and promotes mutual awareness between industry and government,” said USDOT Secretary Elaine Chao during a live-streamed event.

Virgin Hyperloop, of which DP World is the single largest investor, is the category leader in the development of hyperloop technology and the only organisation to have successfully tested hyperloop at scale. The system moves pods at high speed through tubes in near vacuum conditions, using electromagnetic propulsion and electromagnetic levitation. Once realised, hyperloop will be the first and most sustainable new mode of mass transportation in over a century.

The regulatory guidance document came months ahead of schedule and is the first of its kind in the world. In the United States, Virgin Hyperloop has been working closely with the NETT Council over the last year and a half to advance the technology and to ensure that it can deploy hyperloop safely and quickly.

“We have determined that these hyperloop projects are just as eligible for grant as any maglev or magnetic levitation project,” said Finch Fulton, Deputy Assistant Secretary for Transportation Policy during the live-streamed event. “This includes the Federal railway Administration Consolidated Rail Infrastructure and Safety Improvements (CRISI) Programme, the Office of the Secretary BUILD and INFRA grants, and programmes of that sort. This also means that they would be eligible for some of the Department’s loan and lending programmes.”

Commenting on the announcement, Sultan Bin Sulayem, Group Chairman and CEO of DP World and Chairman of Virgin Hyperloop, said: “The technology is advancing rapidly to build the first operational hyperloop system linking cities. We welcome the US government’s announcements which demonstrate increasing confidence that Hyperloop has the potential to revolutionise mass-transportation.

Our objective at DP World with our partner Virgin Hyperloop is to lead the way in hyperloop and to make the United Arab Emirates a global hub for the development of the technology.”

Virgin Hyperloop has also been engaging with governments in the region including the UAE, Saudi Arabia and India. In Saudi Arabia, Virgin Hyperloop recently partnered with the Ministry of Transport to carry out the world’s first hyperloop study at a national level, including a route between Dammam and Jubail in the Eastern Province. In the UAE, Virgin Hyperloop has recently signed a Memorandum of Understanding with Abu Dhabi’s Mohammed Bin Zayed University of Artificial Intelligence to collaborate on research and development.

DP World to buy stake: DP World has agreed to acquire a 60 per cent shareholding in South Korea’s UNICO Logistics.

The transaction, subject to regulatory clearances, is expected to close in Q4 2020, and represents another strategic step in DP World’s vision to build an integrated suite of service offerings that will connect directly with end-customers and beneficial cargo owners to remove inefficiencies in the supply chain and accelerate trade growth.

Established in 2002 by HJ Park and headquartered in South Korea, UNICO has a global footprint of 25 subsidiaries in 20 countries and is one of the largest independent NVOCC (Non-Vessel Operating Common Carrier) in South Korea. UNICO is a multimodal transport specialist with strong market position in the fast-growing transcontinental rail freight market between East-Asia and Central-Asia and Russia, in particular on the strategically important Trans-Siberian Railway and Trans China Railway. The acquisition is in line with DP World’s global strategy to grow as a smart supply chain solutions provider and will provide a platform to drive synergies between UNICO and DP World operations in the Asia Pacific and European regions, while also continuing the expansion of logistics capabilities within DP World’s portfolio. In addition, UNICO’s expertise in handling automotive logistics is aligned with DP World’s strategic focus on this sector.

“DP World’s vision is to become the leading end-to-end supply chain solutions provider. By integrating Unico into our worldwide network we will be able to offer better service to our customers in South Korea and beyond. These new services further strengthen our logistics capabilities, which we are combining with our maritime services operations and our worldwide network of ports and terminals,” Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World, said.

WAM