Impact study

Economic impacts of a TransPod system

Thesis report from our colleague Maxime Lachaize exploring the scope of new modes of environmentally-friendly “green” High-Speed Freight transport (HSF) and the socio-economic impacts resulting from their introduction in existing corridors.
Released in May 2017

Global trade has reached a tipping point. To fight the threats of climate change, the world will ultimately have to decrease its Carbon emissions. Yet, most freight transport modes still rely on fossil fuels, hence the need to cope with rapidly increasing volumes and faster deliveries requested by consumers. This thesis explores this issue through the scope of new modes of environmentally-friendly “green” High-Speed Freight transport (HSF) and the socioeconomic impacts resulting from their introduction in existing corridors.

To materialise these impacts, the thesis develops an analysis framework through a case study on the implementation of a freight version of the Hyperloop (theoretical high-speed vacuum transport system) in Canada’s Quebec-Windsor corridor. The research first focuses on developing a better understanding of the market’s need for faster freight transport by using social media text analytics to survey users about current freight services, and by interviewing leading shipping companies. The second part of the case study is dedicated to quantifying the expected socioeconomic impacts through undertaking a Cost Benefit Analysis (CBA) including 7 impact categories: Infrastructure Costs, Operational Costs, Costs on the trucking Industry, Revenues, Consumer Surplus, Environmental Benefits and Safety Benefits.

The analysis showed that consumers were concerned about the timeliness of existing freight systems. Furthermore, the forwarders interviewed considered that the Hyperloop could be a potential way of solving existing issues, reduce inventory holding costs, and increase operational efficiency. Building on these impacts, the CBA showed a net socioeconomic benefit 30 years after the implementation of Hyperloop. Sales revenues and increased consumer surplus due to time savings were the largest benefits identified. Additionally, the introduction of this new mode of HSF could develop new industries and stimulate innovation in the corridor. Whilst the Hyperloop might take a long time to be implemented, its substitution effect could rapidly damage trucking companies specialised in time-sensitive shipping. Nevertheless, organisations could remain competitive depending on their ability to adapt their business model or if Hyperloop shipping rates become too expensive.

The findings of this study can be generalised to other countries beyond Canada and are of high relevance from the perspective of strategic issues in international business and operations management. Besides, these results can be used by policymakers and industry professionals to develop a better understanding on the social, economic, and organisational impacts of the introduction of new green modes of High-Speed Freight transport.

    All studies

    Feasibility study released in June 2021

    Feasibility study results of the TransPod project in Alberta

    Results of the feasibility study to bring sustainable transport solutions that could profoundly impact Alberta’s economic landscape.

    Feasibility study released in October 2019

    Marseille connection

    Preliminary study concerning the construction and operation of a TransPod line in the South Region of France.

    Feasibility study released in March 2019

    Hyperloop in Thailand

    Preliminary study on the implementation of a TransPod Hyperloop line in Thailand.

    Impact study released in April 2018

    Test track economic impact

    April 2018 - Analysis report of the economic impacts of the test track in Haute-Vienne (France)

    Economic study released in March 2018

    Express freight market report

    The transportation system designed by TransPod is an answer to the growing express freight demand, while strongly contributing in reducing the environmental footprint of global freight transport.

    Impact study released in May 2017

    Economic impacts of a TransPod system

    Thesis report from our colleague Maxime Lachaize exploring the scope of new modes of environmentally-friendly “green” High-Speed Freight transport (HSF) and the socio-economic impacts resulting from their introduction in existing corridors.