DP World, the Dubai-based global container terminal operator, has invested $50 million in Hyperloop One, the US start-up that is developing technology to transport cargo in tubes at up to 700 miles an hour.
The investment follows a memorandum of understanding between the two companies to carry out feasibility studies into the potential of using Hyperloop systems in the United Arab Emirates, home to DP World and one of the world’s top-three cargo airports.
The first phase will focus on moving containers from vessels docked at DP World’s flagship Jebel Ali port via the Hyperloop system to a new inland container depot in Dubai.
The study will also focus on the efficient handling of containers, costs, benefits and demand, and volume patterns of moving cargo using the new technology.
“DP World and Dubai are at the forefront of technological innovation in the transport and logistics industry and we continue to seek opportunities to invest in and utilize our expertise to develop disruptive technology,” DP World Group Chairman and CEO Sultan Ahmed Bin Sulayem said in a statement.
The DP World CEO has been elected to Hyperloop One’s board of directors.
The DP World contribution has taken Hyperloop’s investment to $160 million, but the company needs “billions” for the technology to take off, CEO Rob Lloyd has said.
The Los Angeles-based company has just hired Uber’s former chief financial officer Brent Callinicos as a full-time financial adviser.
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