Shared value potential of transporting cargo via hyperloop

Abstract

This research estimates the shared value created by constructing a hypothetical Hyperloop to transport cargo along 300 km in Northern Germany. Following Porter and Kramer (2011, 2012), we identified and evaluated eight factors that create shared value: travel speed, operating costs, safety, noise pollution, air pollution, climate effect/carbon footprint, separation effect/property efficiency, and maintenance. Using official data compiled by several German institutes and organizations, we conducted comparative analysis to quantify and compare the above-mentioned factors for Hyperloop and over-the-road cargo transport in Germany. Then, we monetized the individual and collective benefits of the shared value created by Hyperloop replacing a significant share of cargo transported by truck. Our findings indicate that the hypothetical Hyperloop project in Northern Germany would create €660–€900 million of shared value annually. Our research method establishes a framework for assessing future transportation projects, such as Hyperloop, and our findings can be generalized to industrialized nations beyond Germany.