Dubai-based global marine terminal operator DP World plans to look at the possibility of developing and using Hyperloop transportation technology at its main facility, Jebel Ali port in Dubai. 

The company will study the use of a Hyperloop tube to move containers from ports, under an agreement signed recently.

DP World has signed a memorandum of understanding (MoU) with the US-based Hyperloop One to conduct feasibility studies that analyse the value of using Hyperloop systems in the UAE.

The initial focus in Phase 1 will be on moving containers from ships docked at DP World’s flagship Jebel Ali Port via the Hyperloop tube to a new inland container depot in Dubai, said a statement from the company.

The initial study will focus on efficient handling of containers, costs, benefits, demand and volume patterns of moving cargo using the new technology, it said.

DP World group chairman and CEO Sultan Ahmed Bin Sulayem, said: “We continually strive to think ahead and foresee change to create the most efficient, safe and profitable trade solutions.”

“With this collaboration, we’re leading innovation in our industry once again and by testing the Hyperloop technology at Jebel Ali for cargo use, we are taking a first step in exploring new ways of enabling trade and underlining Dubai’s commitment to innovation,” he said.

“The world is changing at a pace never seen before in our history and we intend to be part of a new revolution in transport, connecting markets and economies around the world,” he added.

“This is an example of leading innovation in our industry and pushing the boundaries in the delivery of goods. The potential to use these kind of technologies in emerging markets outside the UAE such as Africa and Asia with large land mass is significant,” Bin Sulayem concluded.

Rob Lloyd, CEO of Hyperloop One, said:  “We are pleased to extend our global footprint into the Middle East with the signing of the deal with the UAE and DP World.”
 

DP World Group chairman and CEO Sultan Ahmed Bin Sulayem and Hyperloop One CEO Rob Lloyd at the signing ceremony in Los Angeles

“This partnership allows us to embrace the innovation of the UAE and to utilise the creativity of DP World, while expanding the variety of use cases for Hyperloop,” he said.

“The UAE has taken a leadership role in pushing global transportation solutions to the forefront and we believe that it is the perfect market for Hyperloop,” he added.

DELAYS JEBEL ALI EXPANSION

The company, however, said that it is delaying the expansion of Jebel Ali port, because of “softer market conditions”.

A plan to add 1.5 million 20-foot equivalent units (TEU) of capacity to Terminal 3 at Jebel Ali will be delayed into 2017, while expansion of Terminal 4 will also be slowed, DP World said without giving details.

The company had announced in July 2015 that it would invest $1.6 billion in Terminal 4, which was to be completed by 2018. Jebel Ali handles shipments not only for the UAE but for much of the region. Since last year, however, growth in the oil-rich economies of the Gulf has slowed because of low oil prices.

“(The) global trade environment remains challenging including for Jebel Ali port,” DP World said.

Also, DP World reported a 50 per cent jump in net profit attributable to shareholders during the first half to $608 million, helped by the acquisitions of Dubai’s Jebel Ali Free Zone and Canada’s Fairview Terminal. DP World’s revenue for the first half was $2.09 billion, up from $1.90 billion a year earlier.

CONTAINER VOLUMES UP

An artist’s impression of the Hyperloop system for DP World’s flagship Jebel Ali Port in Dubai

The leading ports operator reported first-half 2016 gross container volumes up 1.2 per cent on a like-for-like basis and up 2.5 per cent on a reported basis.

The Dubai-based company handled 31.4 million twenty-foot equivalent units (TEU) with growth largely driven by strong performances at its European and Indian subcontinent terminals, according to a statement.

This growth offset `challenging’ market conditions in Australia and Latin America, while the amount of TEUs it handled in its home market of the UAE fell 6 per cent year-on-year due to a reduction in lower-margin cargo.

Consolidated volumes, at terminals over which DP World has control, fell 1.4 per cent on a like-for-like basis to 14.6 million TEU. On a reported basis though, it increased 1.6 per cent.

BEST SEA PORT - MIDDLE EAST

Its flagship Jebel Ali Port was recently voted “Best Sea Port – Middle East» for the 22nd consecutive year at the recent Asian Freight, Logistics and Supply Chain Awards (AFLAS).

The award was received by Rashid Abdulla, senior vice president and managing director, DP World, Asia-Pacific Region, on behalf of the company at a gala ceremony in Shanghai, China, said a statement.

The AFLAS Awards is an annual event hosted by Asia Cargo News to recognise best performing industry leaders in seaports, airports, shipping, aviation, and logistics. The winners were voted for by over 15,000 Asia Cargo News readers, it said.

Sultan Ahmed Bin Sulayem, group chairman and CEO of DP World, said: “Our flagship port has been recognised for over two decades and this award again demonstrates its role as a gateway hub in the region, reinforcing our role as a leading enabler of world trade.”

“The reputation of Jebel Ali has been built over time on our operational efficiencies, the work of our employees and our customers without whose support this achievement would not have been possible,” he said.

“The AFLAS award in Shanghai underlines the global reputation we have and is a testimony to the excellent teamwork of our people at Jebel Ali Port and their commitment to creating the most productive, efficient and safe services in the region,” he added.