Hyperloop Transport Technologies (HTT) hopes to completely redesign the way goods are transported in Brazil with an ambitious HyperPort project. The goal of the project is to build a high-speed railway that would carry 40-foot-long (12.2-meter) containers in partially vacuum tubes at speeds comparable to flying.
A preliminary study has been completed and the results show that the project is not only economically feasible but also feasible in many aspects. The study, conducted by LabTrans of the Federal University of Santa Catarina in partnership with Brazilian port logistics company EGA Group, aims to establish a route from the port of Santos via São Paulo and other major cities and waterways.
With a throughput of more than 5 million TEUs (twenty-foot equivalent units, a unit of measurement for containerized cargo) in 2024, the Port of Santos ranks approximately 40th globally, but is the largest and most modern container port in all of Latin America. On any given day, between 3,000 and 15,000 trucks enter and leave the port, and the 60-mile (97-kilometer) mountain road drive from the port to Sao Paulo takes about two hours, depending on traffic conditions.
The Hyperloop capsule is designed to carry a single 40-foot container (equivalent to two standard containers) to and from a port at speeds of approximately 370 mph (595 km/h), reducing journeys of hours or even days to 20-30 minutes, comparable to air freight speeds.
According to demand forecasts, 4,810 capsules will shuttle back and forth daily between Sao Paulo and Santos, and 4,156 between Sao Paulo and the further inland city of Campinas. This means there could be as many as 4,000 fewer trucks on the road every day.
Currently, HTT is focused on the 105-mile (169-kilometer) Santos to Campinas route, which is probably the most lucrative of all.
While the research has been done and the numbers have been crunched, the actual construction of HyperPort will require considerable investment. The facility has projected capital expenditures (CAPEX) of $9.6 billion for construction and infrastructure and operating expenses (OPEX) of $1.6 billion over its lifetime to cover operations, staffing, maintenance and energy costs of the Campinas/Santos route. Total revenue for this segment alone is expected to reach $17.1 billion.
HTT expects operating expenses for the entire 341-mile (549-kilometer) project from the port of Santos to Rio Preto São José to total $2.8 billion, with annual revenue of approximately $535 million. If the Brazilian government fully funds the project, HTT expects an internal rate of return (IRR) of 62.7% and a net present value (NPV) of US$4.8 billion, making it a very attractive investment. Even if 25% of the capital expenditure is covered by private sector investment, the project will still be financially viable and highly profitable. Other financing models such as public-private partnerships (PPPs) may also be considered.
Some of the data released by HTT span 30 years, and it is mentioned that "by 2060, the daily reduction of carbon dioxide emissions is estimated to be 906 tons", which means that HTT will be committed to this for the long term and aims to provide an environmentally friendly alternative for cargo transportation. HTT is even expected to save $2 billion in tertiary industry costs, thanks to indirect economic benefits from fewer accidents, lower air pollution and less wear and tear on roads from trucks.
The next step is to complete a technical, economic and environmental feasibility study (EVTEA). Once completed, funding models and government approvals will determine the fate of this future freight network. This is no easy task.