Hyperloop Transportation Technologies (HTT) is looking to completely redesign the way cargo transport is carried out in Brazil, with an ambitious HyperPort project. The aim of the project is to build a high-speed railway that carries 40-ft (12.2-m) shipping containers in a partial vacuum tube at speeds rivaling that of flight.
An initial study has been completed, and the results suggest the project is doable in more ways than just financially. The study was led by LabTrans at the Federal University of Santa Catarina – in partnership with Brazilian port logistics firm EGA Group – with the goal of establishing a route from Port of Santos through São Paulo and beyond, going through other major cities and shipping lanes.
Port of Santos handled over 5 million TEUs (20-foot equivalent unit – how container cargo is measured) in 2024, ranking about 40th in the world, but is the largest and most modernized container port in all of Latin America.
Between 3,000 and 15,000 trucks can come in and out of the port on any given day, and the 60-mile (97-km) mountainous drive to São Paulo takes around two hours, depending on traffic.
The Hyperloop capsules will be designed to carry individual 40-ft containers (equivalent to two TEUs) at speeds of around 370 mph (595 km/h) to and from the port, turning a trip of several hours or even days into 20-30 minutes, rivaling air freight speeds.
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Based on demand projections, daily operations would see 4,810 capsules zipping back and forth between São Paulo and Santos – and 4,156 between São Paulo and the further inland city of Campinas. That could mean up to 4,000 fewer trucks on the road per day.
Currently, HTT is focused on the 105-mile (169-km) Santos to Campinas route, which could be the most lucrative of all.
While the studies have been done and the numbers crunched, actually building the HyperPort requires a fairly hefty investment. The facility has a projected Capital Expenditure (CAPEX) of US$9.6 billion for construction and infrastructure, and an Operating Expenditure (OPEX) of $1.6 billion over its lifetime to cover operation, staffing, maintenance, and energy expenses for the Campinas/Santos route. A total of $17.1 billion in revenue is expected from just this sub-stretch.
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In total, HTT expects a $2.8 billion OPEX for the entire 341-mile (549-km) project from Port of Santos to São José do Rio Preto, with annual revenue around the $535-million mark. If the Brazilian government fully funds the project, HTT estimates a 62.7% internal rate of return (IRR) with a net present value (NPV) of $4.8 billion, making it a very attractive investment. Even if 25% of the CAPEX were to be covered by private sector investments, the project is still financially feasible – and exceedingly profitable. Other funding models, like public-private partnerships (PPP) could also be considered.
Some of the figures HTT has released span over 30 years, with mentions like “reduced CO2 emissions estimated at 906 tons per day by 2060,” implying that HTT is in this for the long haul, aiming to provide an eco-friendly alternative for moving goods. HTT has even gone so far as to project $2 billion in tertiary savings, courtesy of indirect economic benefits from accident reduction, reduced air pollution, and less wear and tear on the roads due to fewer trucks.
The next step is to complete the Technical, Economic, and Environmental Feasibility Study (EVTEA). Once done, funding models and government approvals will decide the fate of this futuristic freight network. It’s no easy feat.