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TransPod in Alberta

Detailed Proposal
December 2019
TransPod in Alberta - Detailed Proposal - December 2019
© 2019 TransPod Inc. All Rights Reserved Page | 1
Table of Content
Table of Content 2
1. Proposal 5
1.1. Background 5
1.2. Benefits of this new mode of transport 5
1.3. Project phases 6
First phase: Short-term (2020-2022): Feasibility Study 6
Second phase: Short-term (2020-2024): Research and development in Alberta 7
Third phase: Medium-term (2022-2027): Test center and test track in Alberta 7
Fourth phase: Long-term (2025-2030): Construction of the full line 7
1.4. Public value and benefits for the government of Alberta 7
1.5. Support required from the government of Alberta 11
1.6. TransPod’s financial strength to support this proposal 12
1.7. Track record of similar initiatives and projects 12
1.8. Risks associated to the proposal 13
1.9. Our vision for Alberta 14

2. TransPod 15
2.1. Overview 15
2.2. History of tube transportation 15
2.3. TransPod’s competitive advantage 16
2.4. Market segment and applications 17
Passenger market 18
Freight market 18
Other applications 19
2.5. Business Model 21
Short term (2020): Licensing of the technology during the R&D phase 21
Medium term (2025): Pod sales 21
Medium term (2025): Participation in public private partnerships (PPP) 21
Long term (2030): Maintenance: Service, reconditioning, and spare parts 21
2.6. Milestones 22
2.7. Experience in similar project, managing team and partners 22
2.8. Partners 23
Project partners 23
Financial partner 24
Strategic Partners 24
Legal advisors 25
2.9. Awards 25
2.10. Media coverage 25

3. Short-Term: Feasibility Study 27


3.1. Project Description 27
3.2. Project Relevance 27
3.3. Project Delivery 28
3.4. Project Team 28

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3.5. Project Governance Structure 29
3.6. Project scope 30
WORK PACKAGE 1: Project Management 30
WORK PACKAGE 2: Technical and Infrastructure Analysis 32
WORK PACKAGE 3: Economic Forecasting 33
WORK PACKAGE 4: Dissemination and Communication 36
3.7. Work schedule 37
3.8. Project Milestones 39
3.9. Project delivery method 39
Current status of the project planning 39
Project Deliverables 40
3.10. Performance measurement strategy 40
Execution plan Strategy 40
Project Metrics 41
3.11. Benefits of the Project 42
Alignment with local, regional and national transportation priorities 43
Exposure, marketing and export development 43
3.12. Aboriginal consultations 43
3.13. Public Financing Rationale 44
3.14. Investment Rationale 44
3.15. Activity expenditure breakdown 44
3.16. Project Risks 45

4. Short-Term: Research and Development 47


4.1. Overview and objectives 47
4.2. Budget and financing 47
4.3. Socio-economic benefits 48
Industry diversification 48
Clustering effect 49
Industry diversification 49
Exposure, marketing and export development 50
4.4. Scope of work 52
4.5. Milestones and deliverables 52

5. Medium-term: Test Track 53


5.1. Overview and objectives 53
5.2. Technical requirements 53
Breakdown of the facilities 53
Test track guideway 54
Main building 55
Machinery building 55
Secondary building 56
Low-speed loop (option) 56
Future extension for longer test track 56
External requirements 56
5.3. Operating standards 58
5.4. Safety, security, environmental impact 59

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Safety and security on site 59
Environmental protection 60
5.5. Risk analysis 61
5.6. Budget 62
5.7. Socio-economic benefits 63
Sourcing of materials and construction 63
Operations 64
5.8. Implementation 65
5.9. Vision for the test track 67

6. Long-term: Full Line 68


6.1. Overview 68
6.2. Background and objectives 69
The growth of Canada’s transportation needs 69
The problem of sustainable transportation 69
Market share 69
6.3. Budget 70
Budget overview 70
Funding of the project 71
6.4. Socio-economic benefits 72
Economic impacts during operations 73
6.5. Implementation 75
Feasibility studies 75
Identifying and developing relationship with the key people 75
Creation of the consortium 75
Procurement process, commercial and financial close 75
6.6. Timeline 75

7. Appendix A: Definitions 76
8. Appendix B: Calgary - Edmonton high-speed Rail studies and map 77
9. Appendix C: Notice of Motion, NM2017-33 - 2017 August 30 78
10. Appendix D: Transportation Report to SPC on Transportation and Transit -
TT2018-1054 - 2018 October 04 79
11. Appendix E: Cost-Benefit Analysis 83
11.1. The literature 83
11.2. Market readiness 84
11.3. Cost Benefit Analysis (CBA) - Calgary-Edmonton Corridor 85
Methodology 85
Limitations 86
Empirical findings: 87
11.4. Sensitivity analysis 89
11.5. Conclusion of the CBA 90

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1. Proposal
1.1. Background
Alberta has been leading Canada’s economy for decades. Between 2004 and 2014, the province has
contributed disproportionately to economic growth in Canada at 3.4 per cent – which is more than twice the
rate of growth in the rest of the country (at 1.6 per cent). Further, the province has created more jobs than
anywhere else in the country. As an economic powerhouse, Alberta’s contribution to the rest of the country
is truly staggering.
Today, Alberta continues to build on its economic strengths. Alberta’s economy has emerged from its
2015/2016 recession, leading the country in economic growth in 2017. It takes advantage of opportunities
to ensure that Albertans have access to high-skilled jobs in growing sectors and supports companies to
become globally competitive and fully capable of reaching new markets. Alberta’s economy is positioned
for continued success. However, the province is extremely vulnerable to shocks in the oil market. It is
essential that Alberta diversifies its economy and invests in new infrastructures to continue to be a leader
in the future. There is a need to invest in new sources of competitive advantages and to foster new
industries. In fact, the Alberta government, through Alberta Innovates, is committed to working with industry
to support new technology development, increase commercialization and develop new markets and
opportunities.
Concurrently, the Government of Alberta has exhibited a commitment to providing Albertans with a safe
and sustainable transportation system. This is why key strategies identified by the Ministry of Transportation
include the following: (i) maintaining Alberta’s existing transportation assets and investing in new strategic
infrastructure, (ii) adapting Alberta’s transportation system to new innovations and technologies. The City
of Calgary has been leading the way for the Embracing Innovation strategy by approving in 2017 a motion
to “support the development of a research centre and test track as the first steps in determining the viability
of [hyperloop vacuum-train] technology” (see Appendix C and D).
The project presented by TransPod Inc. in this document directly aligns with the objectives of Transport
Canada and Alberta’s Ministry of Transportation by offering a framework to bring sustainable transport
solutions that could profoundly impact Alberta’s economic landscape.
TransPod Inc. is a Canadian company developing ultra-high-speed ground transportation technology, in
collaboration with global aerospace engineering partners and regulators from Canada and the European
Union. In a TransPod “hyperloop” system, pressurized passenger and cargo vehicles travel in a low-
pressure tube environment, driven by linear induction motors and air compressors, at speeds up to 1,200
km/h. Powered by electric energy in a system that is unaffected by weather conditions, the tube
transportation system enables passenger and cargo travel that is cleaner and faster than airline travel,
creating an attractive choice for consumers, a high-potential investment opportunity for infrastructure
investors, and a reliable mass transportation system. This technology has the potential to become the next
CanadARM or the next CANDU reactor: a major technology to be exported around the world.
In December 2016, TransPod secured $15 million USD from the Italian fund Angel Investments for its first
funding round.

1.2. Benefits of this new mode of transport


The TransPod hyperloop is truly a new generation of infrastructure technology. It is a revolutionary
improvement over existing modes of transportation such as airplanes, cars, ships, and trains. It is immune

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to weather, sustainably self-powering and at the same time safer, faster, more affordable, more convenient,
and less disruptive to the environment. Specifically, it shows several advantages over the current modes
of transportation:
• Ultra-fast and frequent passenger transport: It greatly exceeds the speed capability and
frequency of trains, cars, and planes and provides an on-demand service similar to a subway ride
but designed for much greater distances. This will transform cities into metro stops and dramatically
enhance labour market access.
• High-speed delivery of goods: It addresses markets for e-commerce, just-in-time delivery, and
industrial processes by offering same-day deliveries for industrial/commercial shipping, and urgent
business parcel delivery. Besides manufacturing and business shippers, this system will impact
agricultural and food product industries by reducing spoilage caused by low-speed trucking of
perishable products.
• Increased safety: It reduces highway congestion and road accidents between cities, decreasing
economic losses due to traffic delays and low speeds, as well as lowering maintenance costs on
highways.
• Reduced greenhouse gas emissions: Rather than using fossil fuels on board, the vehicles pick
up the tube infrastructure’s electrical power via a third rail. The grid-tube power is regionally
generated and delivered by grid, taking advantage of high-efficiency power plants (or solar/wind).
This grid power can also be supplemented with photovoltaics optionally integrated to the TransPod
infrastructure.
• Footprint and right-of-way: TransPod lines are elevated above ground and do not disturb current
infrastructure networks (roads, train lines, etc.) nor agricultural activities. On the contrary, a high-
speed train infrastructure requires a 40 meters wide corridor, on the ground, cutting fields and
properties in half.
• Export opportunities: The development and commercialisation of this new technology provides
an opportunity for Alberta and Canada to build new industries and grow its high-tech exports in
many other parts of the world (the size of the hyperloop market is estimated to reach $6 billion by
2026 by several research institutes).
A TransPod line between Calgary and Edmonton would operate from 5am to midnight, similarly to a subway
system. Passengers do not need to book their tickets in advance, and do not have to worry about missing
their departure. They would show up at the station, and board on the next vehicle, that would leave only a
few minutes after boarding. Finally, passenger and freight vehicles can simultaneously travel in the
infrastructure. The throughput of the line is optimized as passengers would travel during peak hours, and
express freight would be transported out of peak hours.

1.3. Project phases


The TransPod project in Alberta is divided in four separate phases. The content, scope of work, timeline,
and benefits of each phase are presented in detail in the supporting documents attached to this proposal.

First phase: Short-term (2020-2022): Feasibility Study


The feasibility study will assess the need for the construction of a hyperloop corridor between Calgary and
Edmonton, which will trigger the medium- and long-term phases of the project. The previous studies
conducted in regard to this corridor showed that a high-speed rail line would not be profitable (see Appendix
B). However, such studies did not consider alternative solutions, such as tube transportation, as the
technology was not developed at this time. Our analysts will work with external and independent partners,

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in collaboration with the Ministry of Transportation on the following: 1. Refine the previous findings; 2.
Determine the alignment and the cost of the TransPod infrastructure; 3. Determine the pricing model ; 4.
Establish the financial viability of a full line, by conducting a cost-benefit analysis; 5. Calculate the socio-
economic benefits for Alberta and Canada; 6. Comparative analysis of the various alternatives. The outputs
of the feasibility study will be shared with the Government of Alberta, as well as stakeholder groups, through
public meetings. This project will create permanent jobs locally.

Second phase: Short-term (2020-2024): Research and development in Alberta


Research and development for the development of the main subsystems of the TransPod system and
commercialisation of the first prototypes. This project leverages local expertise through opening a research
centre focused on developing key Intellectual Property that will significantly advance the technology and
set the groundwork for spin-offs. The scope of work for the project will revolve around infrastructure, artificial
intelligence, route design, testing sites, and feasibility studies. This project will create 61 permanent direct
jobs and provide CAD $7.74 M. in direct GDP/year.

Third phase: Medium-term (2022-2027): Test center and test track in Alberta
Construction of a full-scale test facility to test and certify the final iteration of TransPod’s technology. This
full-scale test track will be 10km-long to achieve ultra-high-speeds (1,200km/h and will include every
component of a full commercial line, such as emergency exits, airlocks, expansion joints, safety air refill
systems, and signaling and communication systems to be able to test the circulation of several pods in the
same tube. The construction will create 152 direct jobs and provide a direct GDP impact of $32.90M.
Operations will create 69 direct jobs, and $4.97M in GDP per year.

Fourth phase: Long-term (2025-2030): Construction of the full line


After the technological development, TransPod has the objective of connecting Calgary, Red Deer, and
Edmonton with a freight and passenger hyperloop system, reducing the 3h30 travel time to a 30 min ride.
The construction of the line will create 14,530 direct jobs and provide $3.93b in direct GDP. A line will
reduce CO2 emissions by 400,000 tonnes/year, prevent 300 accidents on the roads/year, provide $1.5b in
yearly travel time savings, and generate $1b of revenues per year.

1.4. Public value and benefits for the government of Alberta


The Calgary - Edmonton corridor, is home to more than 3 million people, and accounts for more than 75%
of the population of Alberta. First, this project incorporates the benefits of a high-speed connection in this
corridor: transform the mobility offer between these two major cities, enhance economic development,
support regional integration by virtually shrinking distances. Over the long term, the implementation of a full
line will support the industrial growth of the corridor. A strong economy reflects the capacity of the Province
to support growth and innovation, and the cluster effect will attract more businesses. The direct public
benefit is more residents, more jobs, and more tax revenues. The line will also increase labour mobility,
solve housing issues as workers will be able to live further away from city centers while keeping a
reasonable commute time. This proposal will also support the Province efforts in reducing the carbon
footprint of passenger and goods transportation. The diversion induced by the line will reduce the number
of cars on the road, resulting in less congestion, less pollution, less accidents.
Then, the project also goes beyond these objectives, as the entire process of bringing ultra-high-speed in
the Province comes with job creation, innovation, and the development of new industrial clusters during the
entire process of its implementation (see economic benefits in the further sections).

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This project is also aligned with several key objective of the business plan 2019-23 of the Ministry of
Transportation1:
Outcome 1- Competitiveness, Market Access and Economic Growth: Alberta has a safe and efficient
multi- modal transportation system that supports the economy
• Key Objective 1.1 Implement transportation initiatives that promote economic growth in Alberta,
and support opportunities in multiple sectors.
• Key Objective 1.2 Enhance access and mobility for transportation users, and support routes
connecting major and high-load corridors and hubs.

Outcome 3 - Connected and Active Communities: Albertans have inclusive and accessible
transportation options in and between communities
• Key Objective 3.1 Promote safe, affordable, accessible and environmentally sustainable public
transportation options for Albertans.
• Key Objective 3.2 Work with partners to support innovative, cost-effective transportation options
that better connect Albertans to critical services and each other, and support access to modern
transportation services in rural and urban communities.

Outcome 4 - Safety and Security: Transportation safety and security is enhanced through
educational, regulatory, technological and infrastructure improvements
• Key Objective 4.1 Continue to implement transportation safety strategies to prevent transportation-
related deaths and serious injuries on Alberta’s roads, including those in Indigenous communities.

Outcome 5 - Innovation and Technology Integration: Alberta’s transportation system adapts to new
innovations and technologies
• Key Objective 5.2 Work with partners to investigate and implement innovative technologies and
approaches, including new modern urban transportation modes such as e-scooters, automated
and connected vehicles and Intelligent Transportation Systems, to promote economic development
and support the safety and mobility of travellers.
• Key Objective 5.3 Investigate and implement innovative technologies, standards and approaches,
including Dynamic Message Signs and unmanned aerial vehicles, to reduce costs and promote the
long-term affordability and efficiency of the transportation system.

Finally, the main mandate of the Minister of Transportation is: “The ministry supports the province’s
economic, social and environmental vitality by developing and preserving a safe, efficient and affordable
multi-modal transportation system. The system enables economic growth and supports market access
while promoting connected communities and enhancing Albertans’ quality of life.” This proposal supports
these objectives: the pre-feasibility study conducted by TransPod and its partners helped identify the
potential regional benefits associated with the implementation of a freight-only hyperloop system between

1
https://open.alberta.ca/dataset/9d234882-5822-4e06-8e08-b00faa488647/resource/a8b67194-f49a-4f30-af5f-
7d591237da8c/download/transportation.pdf

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Calgary and Edmonton. The proposed feasibility study will confirm these estimates and also model the
benefits associated with passenger transportation.

Freight Transport
2030 2045 2055
Benefits (CAD)
Environmental Benefits $ 13,187,101 $ 29,017,991 $ 49,093,394
Revenues $ 876,897,981 $ 1,915,072,121 $ 3,224,108,199
Travel Time Savings $ 405,795,662 $ 1,086,903,649 $ 2,114,911,627
Safety Benefits $ 31,627,793 $ 37,207,559 $ 41,464,200
Total Benefits $ 1,327,508,536 $ 3,068,201,321 $ 5,429,577,419
*These benefits are not the present values, see the Cost Benefit Analysis (CBA)
section for the Net Present Value (NPV)
Value for Money for the government of Alberta
The value for money of the entire project (the construction of the commercial line) will be established
according to the guidelines of Infrastructure Ontario, during the conduct of the feasibility study.
Since the project does not require financial support from the government for the first two phases, there is
no value for money associated with these phases.
For the third phase, if the financing and delivery model is an Alternative Financing and Procurement model
(similar to 3P model), the Province will own a percentage of the consortium owning the infrastructure,
increasing the assets of the Province, and generating substantial revenues as the line operate. The
Province could also choose to sell its assets once the value of the infrastructure has increased.

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Economic Benefits for
Alberta
Short-term (2020-2024): R&D in Calgary
Note: These impacts were calculated using
Impacts of operations per year Alberta’s Input-Output multipliers on the project’s
(Output in M. of CAD) CAPEX and OPEX (using Type I and Type II tables)

20 .00

18 .00
16.30 15 0.00

13 0.00

16 .00

91
5.62
11 0.00
14 .00

17
12 .00 90 .00

2.73 13
10 .00

70 .00

8.0 0

50 .00
6.0 0

4.0 0

2.0 0
7.95 30 .00

61
10 .00

0.0 0

-1 0.0 0

Output Employment (FTE-Years)

Direct Indirect Direct Indirect


Induced Total Induced Total

Medium-term (2022-2027): Building and operating a full-scale test track

Impacts of the construction period Impacts of operations per year


(Output in M. of CAD) (Output in M. of CAD)

10 0.00
97.02 40 0.00
372 15 0.00
15 .00

9.63
111
90 .00

35 0.00 13 0.00
13 .00

80 .00

28.23
30 0.00 108
8.76
11 0.00

24
11 .00
70 .00

25 0.00
60 .00 90 .00
9.0 0

50 .00
20 0.00
112 7.0 0
1.70 70 .00
18
40 .00

15 0.00 1.80
59.16
5.0 0 50 .00
30 .00

69
10 0.00

152 5.26
20 .00
3.0 0 30 .00

50 .00
10 .00

1.0 0 10 .00

0.0 0
0.0 0

Output
-1 .00 -1 0.0 0

Employment (FTE-Years) Output Employment (FTE-Years)

Direct Indirect Direct Indirect Direct Indirect Direct Indirect


Induced Total Induced Total Induced Total Induced Total

Long-term (2025-2030): Building and operating a line between Calgary and Edmonton

Impacts of the construction period Impacts of operations


25 .00
(Output in B. of CAD, Jobs in 000s of FTE)
80.00

70.00 Merge Calgary, Edmonton, and Red-Deer into a


single ultra connected area
20 .00

60.00

15 .00

10.89
50.00
38
Creation of a new industry, strong increase in
40.00

10 .00
1.12 30.00 11
3.59 productivity in the province across sectors
5.0 0
20.00
12
6.19 10.00

15
0.0 0 0.00
Reducing accidents by 200 to 300 and decreasing
Output Employment (FTE-Years) carbon emissions by 200k to 300k tonnes per year

Direct Indirect Direct Indirect $1.5 M. of travel time savings for people and
Induced Total businesses per year
Induced Total

$1 B. of yearly operating revenues and GDP growth

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1.5. Support required from the government of Alberta
The TransPod project has the potential to provide significant socio-economic benefits for Alberta and
Canada as a whole, in the short, medium, and long term. In order to bring this project to fruition, it is
necessary to acquire strong public support in Alberta. Going forward, it will be important for TransPod to
gain public support from the Government of Alberta in the following aspects:
• Provide TransPod with a statement of support from the provincial government toward the first
phases of this project, in order to help secure the funding for the feasibility study, and the budget
for the test center;
• Champion the TransPod project and facilitate the awarding of public grants (such as Opportunity
Calgary Investment Fund), as well as private capital;
• Provide support - mainly through giving access to data, for conducting feasibility studies for both
freight and passenger applications;
• Help identify potential land that could become an adequate location for the full-scale test track
and the research center;
• Give access to a portion of land that would be aligned with the TransPod route between Calgary
and Edmonton, and work with the proper authorities so that such land could host the full-scale test
track;
• Create a working group to work with Federal authorities and the European Union to establish a
regulatory framework for this mode of transportation;
• Providing that the feasibility proves the project beneficial for Alberta, that the testing is successful,
the technology is working, and the founding for the construction of the full line has been secured,
initiate the procurement process to build the full line.
TransPod is looking forward to working with the Government of Alberta to implement these projects and
work towards making Alberta Canada’s leading province for many years to come.

Procurement Model
In order to limit the risks for the government, the proposal has been divided into three phases, and each
phase unlocks the go / no-go decision for the next phase. Then, although an Alternative Financing and
Procurement model (AFP, similar to 3P model) seems to be the most appropriate model for the construction
of the full line, such a procurement model does not have to be set in place at the beginning of the project.
The only contractual arrangement required for this proposal to kick-off is a letter of engagement from the
Government
(i) supporting the project to go ahead;
(ii) offering assistance, mainly in giving access to data, for the feasibility study;
(iii) offering to provide land for a full-scale test track once the feasibility study has proven a line
is beneficial;
(iv) and a commitment to go forward with the construction of a full line, integrating the test
track, when the technology will be ready, and if the feasibility study proves a line beneficial
for the Province of Alberta.
Such support and letter of engagement will allow TransPod to unlock the financial support from its partners
and start the project in Alberta.

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1.6. TransPod’s financial strength to support this proposal
Research and Development and on-going activities
In December 2016, TransPod has secured an initial seed funding for $15M (USD), allowing the company
to start its activities in Toronto (Canada) and in Monopoly, Puglia (Italy). The company has been awarded
a 18M€ ($26M CAD) grant in Italy to pursue research and development activities with its local industrial
partners. TransPod has also been awarded a 2.1M€ ($3M CAD) grant in France to start the construction of
the half-scale test track and kick-off a feasibility study for France.
First phase: feasibility study for the line Toronto - Windsor
TransPod is about to announce the closing of the series A to finance the activities in Canada, including the
first phase of this proposal: the feasibility study.
Second phase: full-scale test track in Alberta
TransPod has secured the budget to support several research and development programs with partners
and academics in Alberta, providing that this proposal receives the official support from the government of
Alberta to move forward.
Third phase: full-scale test track in Alberta
TransPod has secured the budget for the design, construction, and 5 years of operations of the half-scale
test track through its partners, providing that this proposal receives the official support from the government
of Alberta to move forward.
Fourth phase: full line
TransPod has been working with the Canadian Infrastructure Bank, and pension funds such as Ontario
Teachers, OMERS, and La Caisse des Dépôts et placements du Québec (CDPQ) and received letters of
support towards the financing of the first full line in Canada, providing that the government champions the
project, that the technology is working, and that the feasibility study proves it beneficial.

1.7. Track record of similar initiatives and projects


At least five feasibility studies for a better connection between Calgary and Edmonton have been conducted
over the past 35 years, and the track record for this concept is quite detailed.
There is a long track record of technical, business, and financial studies that have been, and are being
conducted worldwide: TransPod has conducted preliminary analyses on the benefits of a hyperloop line
between Toronto and Montreal, and between Calgary and Edmonton. A preliminary feasibility study has
been ordered to TransPod by a Political Party Leader in Thailand to support his campaign2. A full feasibility
study (18 months, $2M) will be released in December regarding a line connecting the Great Lake Area in
the USA (Cleveland, Chicago, Pittsburgh). The Governments of France, UK, Netherlands have been
conducting studies on hyperloop systems, and Transport Canada is currently conducting a feasibility study
on hyperloop technologies.
Hyperloop systems are being tested in Nevada and California in the USA, in France, in the Netherlands,
and in China. Finally, the first commercial lines are about to be built in India and the Middle East.

2
https://transpod.com/wp-content/uploads/2019/03/Final_Report_TransPod_Hyperloop_Thailand.pdf
https://www.youtube.com/watch?v=tGhEj-MWyUc

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Since it is a new and innovative mode of transportation, the track records of this concept will be abroad,
and TransPod offers Ontario to host the first TransPod line in Canada. The timeline for the development of
the technology is five years and includes full-scale testing in Canada. This gives enough time to assess the
technical proposal, conduct a feasibility study, draft the regulatory framework, and establish the proper
procurement model, should the project be beneficial and feasible.

Aerial rendering of the future TransPod test track in France

1.8. Risks associated to the proposal


TransPod’s differentiation in the vacuum-train marketplace is its prioritization of safety and its association
with relevant benchmarks from the aerospace industry as a basis for manufacturing and operational safety
standards to protect the public, system users and its employees (for example, cargo will undergo scanning
and physical inspections, similarly to the airfreight cargo). Risk and safety assessments as part of
TransPod’s culture and the company embrace a minimized risk strategy in every aspect of its development,
including business activities.
Since the hyperloop technology is not yet fully developed, but still under testing, we have drafted a proposal
that limits the risk for the government, both financially and in terms of involvements.
This is why the proposal consists of four phases. Only once each phase is successful, the project moves
to the following phase. If the feasibility study does not show that a line would be beneficial, then the test
center will not be considered. Then, if the technology cannot be developed, the test center will be
decommissioned, removed, and the land will be returned to its original condition.
TransPod’s investors are aligned with this approach, as their financial support is driven by the success of
each phase - and the kick-off being conditioned to the support from the government of Ontario.
Finally, the government of Alberta does not have to initiate a procurement phase, and does not have to
spend money in the project, but only support it, and provide data to ease the conduct of the feasibility study.

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1.9. Our vision for Alberta
TransPod’s vision for Alberta is to drive the growth of the province through sustainable radical
innovation across freight and passenger transport systems.
Alberta is one of the fastest-growing Canadian provinces. In the upcoming decades, the need for faster and
more reliable transportation between its main urban centres will become a necessity. The TransPod system
has the capacity to solve this challenge by virtually cutting distances between Calgary and Edmonton,
therefore merging the two cities into a single metropolitan area. This increased connectivity will profoundly
impact Alberta’s economic landscape and positively stimulate all areas of the economy.
In addition, the development of this new technology in Alberta will build on existing expertise provided by
the province’s labour market and result in the creation of a new industry with a strong potential for industrial
spillovers. This new industry will positively diversify the province’s economic landscape and provide room
for a strong and sustainable growth for the decades to come.
The TransPod project has the potential to provide significant socio-economic benefits for Alberta and
Canada as a whole in the short, medium, and long term. In order to bring this project to fruition, it is
necessary to acquire strong public support in Alberta.
Going forward, it will be important for TransPod to gain public support from the Government of
Alberta. The first action for the government is to champion the TransPod project and provide
TransPod with a statement of support toward the first phases of this project, in order for TransPod
to help secure the funding for the next phases, and get the project starting.
TransPod is looking forward to working with the Government of Alberta to implement these projects
and work towards making Alberta Canada’s leading province for many years to come.

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2. TransPod
2.1. Overview
TransPod is a Canadian company designing ultra-high-speed transportation systems. Through its
technological advances and partnerships with global aerospace and engineering partners, TransPod is
enabling the global development of hyperloop tube transportation. A vacuum train or hyperloop system is
fully electric and fossil-fuel-free and enables passenger and cargo vehicles to travel in a low-pressure tube
environment, driven by linear induction motors, at speeds exceeding 1000 km/h. TransPod’s cutting-edge
new system enables a significant reduction in capital investment, increases reliability, and improves
operational performance, allowing a stronger business case for this ultra-high-speed system. Powered by
electric energy in a system that is unaffected by weather conditions, TransPod’s tube transportation system
enables passenger and cargo to travel faster than aircrafts, creating an attractive choice for consumers and
businesses, a high-potential investment opportunity for infrastructure investors, and a reliable mass
transportation system.
Our vision is a world in which people, cities, and businesses are connected with affordable and sustainable
ultra-high-speed transportation. We are not only building a technical adventure, or a business adventure,
or even an ethical adventure. We are building a human adventure. We want to create the next big company
fostering radical industrial innovations through an engaged, creative, high-performing team. A place where
brilliant minds find the right frame to blossom and to develop truly innovative projects.
TransPod is embarking on a large-scale project to create and build the most practical, economically
feasible, and operationally robust design for hyperloop transportation. To do this, TransPod is developing
its IP, including a contact-less power transmission, and a specific propulsion and levitation system that
minimizes the cost of the infrastructure and make the project financially viable.

Rendering of a TransPod line

2.2. History of tube transportation


The concept of vacuum-tube-based high-speed transportation was first proposed by Professor Boris
Weinberg in 1914, and in parallel, by rocket propulsion pioneer Robert Goddard, whose earlier work and
prototypes were published years later in the 1950s. In the 1970s and 1980s, technology developments in
high-power vacuum pumps and linear induction motors have improved, to a stage where the fundamental
building blocks are in place to make vacuum-tube-based high-speed transportation feasible. In 1997, a

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small firm called ET3 filed a patent on “evacuated tube transport” (ETT). TransPod's design has moved
beyond this design due to some key differences: (a) Not using maglev propulsion, which is used in ETT;
(b) Allowing a small amount of air pressure to remain in the tube to reduce the constraints on the vacuum
pumps, rather than the impractical “total vacuum” design described by ETT. The ETT patents expired in
2017.

Drawing of a pneumatic tube transportation


system in London in 1863

A further concept was introduced in the SpaceX alpha document in 2013, under the name "hyperloop."
However, since then, rather than developing this technology directly, SpaceX has been focusing on
spacecraft development and meanwhile establishing design and speed competitions for "hyperloop" pods
build by student teams worldwide. SpaceX has built a reduced-diameter test tube in Los Angeles, in which
the teams place a low-speed model unit. These units do not have provisions for passengers or cargo bays,
nor for long autonomous trips.
Between 2013 and 2015, three companies have formed to specifically develop variants of the hyperloop
concept: HTT (Hyperloop Transportation Technologies), HTI (Hyperloop Technologies Inc.; since renamed
Virgin Hyperloop One), and TransPod. Besides TransPod, the competition has based their designs around
the earlier SpaceX concept and are constrained by the cost of their propulsion configurations, which
consists of a significantly large array of electromagnets installed along the entire length of the line.
More recently, three more companies have been created in Europe: Zeleros in Spain, HyperPoland in
Poland, and Hardt in the Netherlands. Four test tracks have been built, in the USA, France, and in the
Netherlands, several governments have demonstrated interest in such technology (including the Federal
government of Canada), and the first commercial project is about to be awarded in India.

2.3. TransPod’s competitive advantage


To date, the most popular option for developing tube transport technology is to use magnetic levitation or
“MAGLEV.” This technology was developed in the 1970s and has been successfully tested on several high-
speed train projects such as the German Transrapid and the Japanese MAGLEV, which can reach speeds
up to 600 km/h, higher than conventional wheel-based high-speed trains. Despite its development, this
technology is only used for small transportation projects around the world due to major cost shortcomings.
TransPod decided to move away from using superconducting magnets or “MAGLEV” technology for two
reasons. First, using superconducting magnets in a vacuum has several technological limitations such as
producing corona that accelerates the degradation of materials. Second, laying down superconducting

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magnets over many kilometres of track is extremely expensive ($100 M/km) and does not make the system
economically viable. This is the reason why MAGLEV trains are not used much nowadays despite being
fully developed.
TransPod has developed key innovations which concentrate the technology on the vehicle to drastically
reduce infrastructure costs. Our technology allows levitation, propulsion, and high-speed contactless power
transfer without expensive MAGLEV systems or batteries.
• Levitation system: TransPod uses active levitation achieved through magnetic motors located on
the vehicle. The electromagnets are attracted by conductive plates located on the tube, generating
thrust, braking, and maintaining the vehicle centred along the guideway. The pod is equipped with
a self-canting mechanism allowing it to easily rotate in tight curves along the guideway without
projecting passenger or cargo on the side. This system is patented internationally:
WO/2018/045470.
• Power transmission: This system uses plasma to transfer power from two power rails located on
the infrastructure to the vehicle. This power transmission is an innovation allowing to transfer power
at very high-speeds and goes beyond traditional pantograph, MAGLEV, and 3rd rail shoe systems.
The low pressure inside the tube enables high-efficiency power transmission. This system is
patented internationally: WO/2018/045471.
The following figure provides an overview of TransPod’s technological positioning. To date, TransPod’s
competitors are only using MAGLEV technology.

2.4. Market segment and applications


TransPod’s technology for transporting goods and passengers is competing against high-speed rail,
Maglev, and airplanes. The first two ones are not profitable, while the third one faces congestion and
environmental issues.
Early adopters (Governments and private operators) have the choice between hyperloop technologies
offered by TransPod and its competitors, and thanks to its secured innovation, TransPod infrastructure is
less expensive to build and to maintain, which leads to a better business case.

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To leverage the IP and the findings of the R&D projects, TransPod and its partners develop spin-off products
of some sub-systems. The applications cover several markets and TransPod is building individual business
cases for each product: linear engines, on-board power converters, contactless power transmission, etc.
By partnering with well-established industrial companies, TransPod takes advantage of rapid and safe
paths to market, and mitigates the risk associated with this strategy.

Passenger market
The first target market for TransPod’s technology is the global intercity passenger market. Many corridors
around the world do not have efficient passenger transportation for cities located around 500 km away from
each other. In this case, air travel takes a very short time but forces customers to commute to airports and
wait a long time for boarding and disembarking. Meanwhile, train service is usually poor and doubles the
trip duration compared to aircrafts. The TransPod ultra-high-speed system directly solves this issue by
providing fast and affordable transportation in these corridors.
People are increasingly looking to travel cheap and fast. However, the aviation sector is struggling to
accommodate this new capacity. As economies are growing, increased passenger transport will generate
important CO2 emissions and present a true threat to humanity.
While TransPod’s technology is particularly well suited for diverting air passengers, a vast majority of the
ridership will also come from rail and road transport. Providing a more flexible and quicker alternative to
driving will attract road users and transform the way commute. Indeed, it will be possible to live and work
in two cities far apart from each other and take the TransPod line to get to work. The system will dramatically
shrink distances and transform regions into interconnected boroughs.

Interior of a pod for passengers

Freight market
Over the past five years, e-commerce has been growing at an extremely fast pace and will keep growing
at an average rate of 7% in North America, 5% in Europe and 14% in Asia Pacific within the next decade.
This unprecedented growth is driving the revenues of express shipping companies such as UPS, DHL, and
Canada Post, which are heavily investing in new warehouses and transport modes to cope with this sharp
increase in demand. There is therefore an increasing need for more capacity and faster freight transport to
satisfy the needs of Billions of consumers. Air cargo is currently the most used mode of transport for express
freight delivery and is followed by truck transport.
The fast market growth will engender a sharp increase in GHG emissions, which raises a paradox between
increasing trade and achieving sustainable development. Unfortunately, other modes of “green” high-speed
freight transport such as high-speed rail and MAGLEV did not prove to be economically viable for express
deliveries due to high costs and low speeds.

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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. The TransPod
system can connect industrial areas 500 km away in 30 minutes to less than an hour. The target market of
this system will be air cargo, courier shipments, time-sensitive Less Than Truckload (LTL) shipments,
perishable products, and other high-value goods transported by truck. Each pod vehicle has a payload
capacity ranging from 5 to 15 tonnes and will be able to support automated loading and unloading. Pod
terminals are designed to work efficiently with existing and upcoming last mile delivery technologies such
as driverless trucks, drones, and automated ground vehicles. TransPod already began talks with executives
from DHL, UPS, and Sameday Worldwide to better understand the industry’s needs. Overall, shipping
companies have shown a strong interest for TransPod’s technology as it will help reducing inventory holding
costs, replace cargo planes, reduce cut-off times to increase freight efficiency, and contribute to a more
agile supply chain.
Financial forecasts have shown that the network operator of such freight corridor could reach EBITDA
margins of 52% for a price per tonne kilometre halfway between existing airfreight prices and trucking rates.
The margins were similar to existing North American Class I railroad margins and showed that a TransPod
line could yield strong profits solely through freight operations.

Rendering of a pod for cargo

Other applications
In the words of Gibran Hadj-Chikh, Director for Innovative Transport at Parsons Corp., a new technology
has little chance for success if it isn’t integrated into the global ecosystem. Here are several applications
for a TransPod line, that differ from traditional railway applications, and are made possible only because of
the speed and high frequency of the system:
Decentralize city centers
Urbanization is rapidly growing around the world. However, citizens want to be able to live close to their
work, while having a reasonable cost of living. Ultra-high-speed transportation offers a solution to this
equation, that is quite often difficult to resolve. A 30-minute journey in an urban area covers a limited
distance depending on the mode of transport used. A 30-minute journey in a TransPod line would cover a
distance of 200km (on average 680km/h, taking into account the acceleration and deceleration). In this
scenario, cities in the region would replace the current urban periphery. This would mean a more affordable
cost of living, a better standard of living and urban decentralisation, which would revolutionise home to work
travel.
Reducing warehouse expansions
A TransPod line will also benefit supply chains for business, just-in-time delivery, and online ordering. The
‘want it now’ culture has been growing, which has seen the increase in online orders and next day deliveries,

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even same day deliveries. Existing solutions create environmental harm -- such as transporting more goods
by plane. In the medium term, increasing the size of logistics centres also leads to pollution, higher costs
for air traffic, increasing storage costs and level of goods stored within warehouses. Introducing a TransPod
network would challenge this current cargo model: in addition, one single warehouse could feed local
reception centres, where goods could be transported through shuttles which could cover the final kilometre
of the journey. No need to replicate stock piling in every city to ensure same day delivery; orders made
before midday could be shipped at 1500km in two hours and delivered the same evening.
Absorbing the increase in air traffic
Air traffic is increasing worldwide. Trends indicate that the number of passengers double every 15 years,
with undesirable effects, such as sound pollution, greenhouse gas emissions and large airport
infrastructure. The project in Notre-Dame-des-Landes in France recently uncovered the difficulties
encountered by new airport infrastructure projects. Would it not be better to make the most out of current
infrastructure, linking airports together and making several connected terminals in one airport instead of
building from scratch? Moving from one terminal to another could take thirty to forty minutes in large airports,
but a TransPod line could connect three regional airports that are 200 kilometres apart in less than thirty
minutes. By optimising the distribution of destinations to avoid duplication, three connected airports could
reduce the number of small carriers to concentrate on larger, more efficient ones. They would cash in on
an increase in passenger traffic, through a user correspondence time that is similar to that already
experienced in larger airports.
Replace short-haul flights
If jet flights are the best way to quickly cover large distances and intercontinental journeys, what does this
mean for short-haul flights? They are less profitable than long-haul flights, especially when they are at the
first or final stage of a journey with connections. They are also less efficient than the larger carriers in terms
of energy and pollution, and they also take up the same amount of space as a long-haul carrier regarding
the departure gates, departures area and interaction with stations on the ground. By travelling at ground
level at the same speed as a plane and by reducing the environmental impact, a TransPod line could cover
the distances currently run by short-haul flights, leaving airports to cover longer distances.
Ville A Ville D
> 1000 km
> 2h

200 km 20 min 200 km 20 min

500 km 500 km
Ville B Aéroport Aéroport Ville E
40 min 1 2 40 min

300 km 25 min 300 km 25 min


Hyperloop

Avions

Aéroports
Ville C Ville F
Villes

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2.5. Business Model
The sales of TransPod’s final products will only happen after the full development of the technology. To
fund the development of the solution prior to monetizing the final product, TransPod has implemented a
multi-step business model.
During the development of the technology, TransPod partners with industrial companies that share a
common interest in either the core of the technology, either sub-components. For example, TransPod’s
initial investors identified a few key aerospace technologies that can be used on their own lines of products.
This allows TransPod to fund its programs and to build early relationships with its future customers for spin-
off products. TransPod’s strategy is to create key innovations in the TransPod System as a whole, and also
to create innovative products and applications for other industries.
Technologies developed during the TransPod project are designed to be marketable to pipeline, railway,
automotive, and aerospace industries, in order to diversify the revenue streams of the company.
TransPod’s technology is not for the general public, but for major companies and Departments of
transportation. TransPod is conducting feasibility studies to tackle the issues related to the long time-frame
of implementing entire lines. This activity has already started to generate revenues. Moreover, it helps in
identifying the future markets, and it already involves influencers, decision-makers, and future customers
for TransPod’s business activities.
Then, following these early stage marketing efforts, TransPod will be able to decline the 4 long-term sources
of revenues:

Short term (2020): Licensing of the technology during the R&D phase
• TransPod will license its technology to other industries upon completion of each subsystem
development.
• Royalties on licensing will vary between 2% and 10% of the subsystem’s value.
• Revenues from royalties will be reinvested into further technological development.

Medium term (2025): Pod sales


• 30% pre-delivery payment from the customer when the order is signed.
• 30% payment from the customer upon delivery.
• 40% payment from the customer when the line starts to operate.

Medium term (2025): Participation in public private partnerships (PPP)


• TransPod will own from 10% to 30% of each consortium operating future hyperloop corridors.
• TransPod ownership will be sold when the corridor construction will start; usually 2 years after the
creation of the PPP consortium entity.
• Construction of the first hyperloop corridor to start in 2025.

Long term (2030): Maintenance: Service, reconditioning, and spare parts


• TransPod will perform the maintenance of each Pod owned by the operator.
• Revenue stream to be 1% yearly of the Pod unit price times the number of Pods to be maintained.
• First TransPod hyperloop line to start operating by 2030.
TransPod is targeting the global smart transport market which will be valued at $284 billion USD in 2024
with an average yearly growth rate of 22.5% (according to Grandview Research). We are focusing on fast-
growing corridors with aging infrastructures in Canada, Asia, and Middle East.

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2.6. Milestones
Here is the list of milestones already reached by the company:
• 2016-09-20 - Innotrans: presentation of the solution and the company at the largest rail exhibition
in Belin, Germany.
• 2016-12-01 - Seed funding: $15M secured from Angelo Investment, Italy.
• 2018-04-01 - Kick-off of the Power Converter project: This "Eurostar" labelled project is co-
funded by the European Union and the Ministry of Research in Canada.
• 2018-06-20 – Award: Startup Canada Innovation of the Year Award.
• 2018-06-27 – Partnership: Signature of the partnership between 4 hyperloop companies to work
with the European Union and draft the regulatory framework.
• 2018-11-30 – Construction permit: Approval of the construction permit for the half-scale test track
in France.
• 2019-01-20 – Partnership: Signature of 3 partnerships at the Canadian Embassy in Paris with
Arcelor Mittal, SADE, and EDF.
• 2019-03-15 – Feasibility Study: Presentation of the final report for the feasibility study in Thailand.

2.7. Experience in similar project, managing team and partners


TransPod has gathered a team of highly skilled experts in the aerospace industry. The experience of the
company in managing international projects demonstrates its capacity to work with a global network of
partners, such as the ones that will deliver this project along with TransPod.
Then, TransPod has already conducted several feasibility studies: freight transportation between Toronto
and Montreal (Canada), Cost-Benefit Analysis of the TransPod system as a whole, recommendation to the
UK air industry, high-speed ground connection between Marseille airport, Marseille downtown, and Nice
airport (France), and the first publicly released report on a feasibility study of a TransPod line in Thailand,
linking Phuket, Bangkok, and Chiang Mai. With its partner REC Architecture (France), TransPod has
designed its first half-scale test center and received the approval for a construction permit. The project
should break ground in early 2020. TransPod has signed a collaboration agreement with three other
hyperloop companies to collaborate with the European Union on drafting the regulatory framework for this
new mode of transportation and participates in all the related meetings.
Finally, TransPod has carefully selected its partners among industry leaders, to develop the technology,
bring to the market commercial products derived from the main subsystems, conduct large scale feasibility
studies, and finance, design, build and operate full lines.
The project will be led by the managing team of TransPod and completed by local and internal Project
Managers. TransPod’s key staff include:

Sebastien Gendron – CEO and co-founder


Sebastien founded TransPod in 2015 to build hyperloop as an alternative to the
relatively expensive, slow, and environmentally harmful means of travel we have today.
With the mission of building a tech leader based in Canada, Sebastien brings more than
15 years of experience leading engineers at global transportation manufacturers,
including Bombardier, Safran S.A., and Airbus Group. He holds a master’s degree in
aerospace engineering from ISAE-SUPAERO and Aix Marseille University in France.

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Dr. Ryan Janzen – CTO and co-founder
Dr. Ryan Janzen’s extensive background in research and development has led to
advances in avionics, optics, mathematical theory, vehicle propulsion, and physics. He
has produced more than 40 scientific papers and presentations and is a member of
distinguished professional organizations including the IEEE Aerospace and Electronic
Systems Society. As a Ph.D. engineering from the University of Toronto in Canada,
Janzen led the development of first-in-the-world innovations: swarm modulation and
extramissive optics. Extramissive optics has led to an entirely new field of research,
investigated at 4 universities worldwide.
Thierry Boitier – Procurement and Partnership Director
Thierry has more than 15 years’ experience in international supply-chain and spare
parts management with global companies such as Caterpillar and NTN-SNR bearings.
He has been working in North America, Europe, Africa and Asia, and has a proven
record of multicultural team management, sales and procurement, inventory
management and change management. Autonomous, bilingual and dedicated to his
work, he owns a master’s Degree in general engineering from Centrale Lyon in France,
and a Master of Science in Management from EM Lyon in France. He also run
marathons, plays pipe organ and piano and owns several musical degrees from the
French musical conservatory of Orleans.
James Lew - Director of Infrastructure
James is a professional architect and strategic leader with a record of accomplishments
in highly technical and multidisciplinary infrastructure projects for over 22 years. He
brings a unique, business and creative background and has the ability to thrive in a
broad range of leadership situations. James is a perceptive innovator with strong
collaborative and presentation skills who builds realistic solutions with precision and
flexibility. He is recognised as a respected, trusted and approachable professional who
engages and inspires others through visioning and thought leadership. He is an
alumnus of McGill University’s School of Architecture.

2.8. Partners
TransPod has initiated discussions with several renowned partners in Alberta, in Canada, and in Europe.
Since the project aims at developing local industries, TransPod is currently exploring the local industrial
network to look for further partnerships with local academics and local companies.

Project partners
ENTUITIVE:. Entuitive is a Calgary-based consulting engineering practice with a vision
of bringing together engineering and intuition to enhance building performance. Backed
by decades of experience, they are taking design performance to new heights through
their collaboration with clients in North America and internationally including architects,
developers, building owners and managers and construction professionals.
Fiera Infrastructure: Fiera Infrastructure provides investors with attractive risk-adjusted
returns, on a long-term basis, by investing in Canadian and international infrastructure
assets, projects and companies. Fiera offers to provide its expertise in infrastructure
projects, in terms of financing, management, and realizations.

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Caisse de dépôt et placement du Québec (CDPQ): Created in 1965, CDPQ today
manages more than CAD 325 billion. We invest our clients’ funds worldwide, targeting
high-quality assets rooted in the real economy. CDPQ offers to assist with the financing
of TransPod’s research centers and the construction of the lines.
CanmetMATERIALS: CanmetMATERIALS is the largest research centre in Canada for
material science. It provides help on pod materials, infrastructure, and provides high-
performance computing capabilities.
ESRI: Esri is an international supplier of geographic information system (GIS) software,
web GIS and geodatabase management applications. The company is headquartered in
Redlands, California. The company was founded as Environmental Systems Research
Institute in 1969 as a land-use consulting firm. Esri products (particularly ArcGIS Desktop)
have 40.7% of the global market share. The company has 10 regional offices in the U.S.
and a network of 80+ international distributors, with about a million users in 200 countries.
The firm has 3,200 employees in the U.S. and is privately held by its founders.
CRC-EVANS PIPELINE INTERNATIONAL: For more than 80 years, CRC-Evans has
provided equipment and services for virtually every aspect of onshore and offshore
pipeline construction. The industry’s largest global group of pipeline construction
companies, only CRC-Evans delivers the infrastructure and resources needed to serve
pipeline contractors anywhere on earth.
Southern Alberta Institute of Technology: SAIT is a leader in applied research and
innovation, providing expertise and resources to industry and real-world learning
experiences to students. SAIT delivers training internationally and hosts learners from all
over the world.

Financial partner
Angelo Investments: Angelo Investments is an Italian holding company focused on long-
term investments in the high-tech sector, and works with talented entrepreneurs and
management teams to develop breakthrough technologies. With their unique blend of
industry-leading expertise in the space, aviation, and railway industries, Angelo’s
companies collaborate with TransPod throughout the design, testing, and development
of TransPod technologies.

Strategic Partners
MERMEC: MERMEC is an Italian company focused on rail inspection and diagnostics
(both systems and vehicles), railway signalling, asset management software, and
professional services for the railway industry. The company co-develops the signaling
and communication systems with TransPod.
Blackshape Aircrafts : Blackshape Aircrafts develops and produces high-performance
carbon fibre aircrafts, for civil aviation and military. Blackshape is working with TransPod
on the structure and the shell of the pods.
SITAEL: SITAEL is the largest privately-owned Space Company in Italy leading the
development of the Small Satellites sector. With over 300 employees and state-of-the-art
facilities, SITAEL covers all the processes needed for the Design, Development and
Production of Small Satellites, Advanced Propulsion Systems, Instruments and Avionics.
SITAEL’s IV10 vacuum chamber is amongst the largest space simulators in the world,

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© 2019 TransPod Inc. All Rights Reserved Page | 24
and the one with the highest pumping speed with xenon. The company offers expertise
on aerospace and vacuum environment, and provides large vacuum testing equipment.
REC Architecture: REC is a French architecture firm bringing technical, creative and
managerial expertise to develop global infrastructure projects. It co-designs the
infrastructure, stations, and pod interiors with TransPod.
IKOS Consulting: IKOS is a leading railway consulting firm with offices in France and
Canada. IKOS not only co-develops the on-board power structure but also provides
consulting and support.
Liebherr-Aerospace: Liebherr-Aerospace is one of the world’s leading system suppliers
for the aerospace industry with 57 years of experience. It co-develops the air cabin and
the liquid-cooling systems with TransPod.
The Boson Project: The Boson Project helps companies to build engaging, innovative
and performing organizations to reach their ambitions. It assists TransPod in their growth
strategy and accompanies TransPod in the construction of its novel organizational model.

Legal advisors
KGPC: Located in Alberta, KGPC provides value-based professional legal services from
simple individual wills to complex commercial transactions in a convenient, accessible
manner.
Patent International: Patent International is the number one best resource to protect the
entire portfolio of intellectual property rights owned by Fortune 500 and other companies
in all foreign jurisdictions. They take the burden of requisite obligations to do foreign filings
and language translations off their customers’ shoulders while providing a centralized
point of contact to reduce administrative burden and costs.

2.9. Awards
TransPod is proud to have received several awards for its innovative technology:
• Member of the World Alliance for Efficient Solutions, managed by the Solar Impulse
Foundation - since 2017
• Canada’s Clean50 Emerging Leaders, by DELTA MANAGEMENT GROUP INC., November
2018
• Startup of the year, Provincial Award, by Startup Canada, June 2018
• National Innovation award, by Startup Canada, November 2018
• Lauréat As des As, at the Paris Air Forum, June 2017
• “Les Innovateurs”, by the French-Canadian Chamber of Commerce in Alberta, 2018

2.10. Media coverage


Here is a summary of the main media coverage from the inception on the company to most recent media
coverage in Alberta:
• Toronto Star - https://www.thestar.com/business/2016/03/13/hyperloop-the-tube-that-promises-
to-get-you-from-montreal-to-toronto-in-less-than-30-minutes.html

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• Discovery Channel - https://www.youtube.com/watch?v=Am1hUne_NQA
• Mass Transit - https://www.masstransitmag.com/press_release/12282191/transpod-announces-
15m-seed-round-funding
• Air Cargo World - https://aircargoworld.com/allposts/canadian-hyperloop-startup-adds-ikos-
consulting-to-project/
• Bay Street Bull - https://issuu.com/bayst.bull/docs/bay_street_bull_spring_2017
• CBC News - https://www.cbc.ca/news/canada/calgary/transpod-hyperloop-calgary-edmonton-
corridor-1.4060954
• Calgary Herald - https://calgaryherald.com/news/local-news/councillor-lobbies-to-make-city-a-
research-hub-for-high-speed-hyperloop-technology
• France 2 - https://www.youtube.com/watch?v=L4MJeiin7e4
• Huffington Post - https://www.huffingtonpost.fr/2018/08/08/lhyperloop-train-subsonique-bientot-
a-lessai-dans-le-limousin_a_23498351/
• Sciences et Avenir - https://www.sciencesetavenir.fr/high-tech/transports/l-hyperloop-a-limoges-
et-a-toulouse-le- point-sur-ce-train-du-futur-imagine-par-elon-musk_126629
• Bangkok Post - https://www.bangkokpost.com/thailand/politics/1644660/ffp-pushes-hyperloop-
transit-plan
• L’usine Nouvelle - https://www.usinenouvelle.com/editorial/transpod-trouve-des-partenaires-
pour-son-hyperloop.N798990
• CTV News - Alberta Primetime - https://www.youtube.com/watch?v=l5kcn6usXvQ
• Fox News - Varney & Co. - https://www.youtube.com/watch?v=D4tEddiG6_g&t=145s
• CBC News - https://www.cbc.ca/news/canada/calgary/alberta-hyperloop-calgary-edmonton-
1.5375476
• Calgary Herald - https://calgaryherald.com/news/local-news/proponents-of-calgary-to-edmonton-
magnet-tube-transporter-seek-provincial-nod

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3. Short-Term: Feasibility Study
3.1. Project Description
The feasibility study proposed in this application will adopt the form of a case study located in the Calgary-
Edmonton corridor, the second most densely populated corridor in Canada. In September 2017, the city of
Calgary passed a motion3 to explore the potential of hyperloop technology in Alberta and the associated
benefits for the population. The ministry of Transportation of Alberta also expressed its interest in exploring
the feasibility of this new technology. TransPod is also currently working with Transport Canada in order to
develop the safety regulations of hyperloop vacuum train systems.
The entire project will cost $2,000,000 over a duration of 20 months.
A pre-feasibility study realised by TransPod identified that a freight hyperloop line in the Calgary Edmonton
corridor could provide the following benefits:
• Substantial reduction of truck traffic within Edmonton and Calgary urban areas, as well as highway
2. This reduction was a factor of reduced congestion on the road and enhanced economic
performance.
• The modal shift between truck and hyperloop engendered a recurring reduction of carbon
emissions and travel time savings for shippers.
• The truck traffic reduction resulted in fewer accidents on the road on a yearly basis.
• The revenues and net social benefit generated by the system will cover the construction costs
before the 30th year of operations.
• Local GDP will increase with the construction and the project will leverage Alberta’s pipeline
industry expertise, creating new jobs and new emerging sectors.
The detailed results of the pre-feasibility study are provided in appendix E: Cost-Benefit Analysis.
Aligned with the motion passed by the City of Calgary, building on the pre-feasibility study conducted as
well as the previous high-speed rail studies done in the corridor, this new feasibility study will explore the
technical and economic feasibility of implementing a hyperloop system in the Calgary-Edmonton corridor.
This exploratory research will be done within the frame of a feasibility study conducted by TransPod,
providing a solid track record of infrastructure project management and planning in Canada and abroad.
The scope of this feasibility study will be set for both freight and passenger transport, as the two activities
may operate at the same time in the system.

3.2. Project Relevance


TransPod has been actively conducting research on the socioeconomic impacts of evacuated tube
transport prior to this project. The development of this technology and its integration for freight transport
between Calgary and Edmonton has the potential to provide a net economic benefit after 30 years. With an
increasing demand for time sensitive shipping solutions, the hyperloop line could drive significant demand
diverted from truck transport. Every year, the line could remove up to 472,000 trucks from the road (in 2030)
in Calgary and Edmonton’s urban areas as well as Highway 2. This traffic reduction would avoid the release
of 200,000 Tonnes of CO2 every year (in 2030) and would provide businesses and consumers in the region
with travel time savings up to $400 M per year.

3
See Appendix B and C

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The proposed feasibility study will validate the initial trends identified in the pre-feasibility study conducted
by TransPod and provide Alberta Transportation with the following material:
• Report on the best evacuated tube transport technology to be used in the Calgary – Edmonton
Corridor, the most suitable route for the infrastructure and the associated construction and
operating costs.
• Report on the existing and future passenger demand for high-speed high frequency intercity
transport in Alberta with ridership forecasts of hyperloop tube transportation systems.
• Report of the current and forecasted flows of time sensitive freight within the Calgary and Edmonton
corridor and the willingness to pay of freight companies and users of freight services, as well as a
detailed pricing model.
• Report on the environmental and societal impacts of implementing hyperloop lines.
• Report on the economic costs and benefits associated with the implementation of a hyperloop line
in the Calgary – Edmonton corridor, with impacts generalizable to other intercity links. This report
will be presented to Alberta Transportation and shared with the public to raise awareness of
Canadians with regards to sustainable transportation and climate change.

3.3. Project Delivery


The project will be composed of the four (4) following Work packages:
• Project Management
• Technical and Infrastructure Analysis
• Economic Forecasting
• Dissemination and Communication

3.4. Project Team


The project team will be composed of both TransPod and its partner’s employees who will be staffed on
the analysis and reporting throughout the project’s advancement. Additional staffing will be done early on
during the project’s execution to build the survey team.
Work
# Positions
Package
1 Project Manager 1, 2, 3, 4
2 Steering Committee Chair 1, 2, 3, 4
3 Technical Committee Chair 1, 2, 3, 4
4 Engineering Team Leader 2,3
5 Infrastructure Team Leader 2,3
6 Operations Team Leader 2,3
7 Transport Policy Specialist 3
8 Economics & Policy Specialist 1, 2, 3, 4
9 Sr Transport Analyst (operations) 2
10 Sr Transport Analyst (Demand Forecasting - Pax) 3
11 Sr Transport Analyst (Demand Forecasting - Freight) 3

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12 Transport Analyst (Demand forecasting freight and Pax) 3
13 Transport Analyst (impact analysis) 3,4
14 Sr Transport Engineer 1,2
15 Transportation Engineer 2
16 Environmental Scientist (Junior) 3
17 Environmental Scientist (Senior) 3
18 Sr Civil Engineer 2, 3
19 Civil Engineer 2
20 Aerodynamics/Mechanical engineer 2
21 Survey Assistant 1 3
22 Survey Assistant 2 3
23 Survey Assistant 3 3
24 Survey Assistant 4 3

3.5. Project Governance Structure


Organisational Body Member(s) Responsibility Reports to
Selected experts and Strategic input to project
Steering Committee N/A
stakeholders partners

Project Management and Overall project management


James Lew, Project Manager Project Manager
Finance Office (time, risk, finance)

Work Package Leaders TransPod WP objectives Project Manager

Steering Committee
This entity will regroup one member of each entities, including one person from Alberta Transportation, to
make concrete decisions on the project’s budget, timing, deliverables etc. Furthermore, the committee will
provide advice on the decisions taken in each work package with regards to the technology used and
methodology adopted in the analysis. The steering and technical committee will be in charge of solving the
problems that could be encountered. If no consensus can be reached following a motion or solution to a
problem, the board will undertake a vote with winning majority. The board will hold a general meeting at
least every 4 months.
Project Management and Finance Office
TransPod proposes James Lew as a project manager. James brings a solid track record of project
execution for infrastructure megaprojects and is well experienced in conducting feasibility studies. The
project manager will be responsible of organising the project planning phase and control the timeliness and
budget of each Work Packages.
WP Leaders
This project’s two major work packages will be split between TransPod and its infrastructure partners to
leverage both partner’s full expertise potential. WP 2 (Technology and Infrastructure Analysis) will be led

TransPod in Alberta - Detailed Proposal - December 2019


© 2019 TransPod Inc. All Rights Reserved Page | 29
by a civil engineering partner as it will focus on the technological specifications of the infrastructure as well
as the route specifications to be determined. TransPod will provide guidance on the assumptions to use
with regards to the tube transportation technology and provide engineering expertise to make decisions.
WP 3 (Economic Forecasting) will be led by TransPod in order to leverage its existing knowledge in
transportation economics.

Project Management
Steering Committee
and Finance Office

WP 1 : Project
Management

WP 2 : Technology and
Infrastructure Analysis

WP 3 : Economic
Forecasting

WP 4 : Dissemination
and Communication

3.6. Project scope


The project’s scope is to explore the socioeconomic impacts of the implementation of a hyperloop line
between Calgary and Edmonton though a complete feasibility study which results will be disseminated
among Alberta Transportation and available publicly after review.
This feasibility study will be aligned with Canada’s efforts to explore new innovative technologies to ensure
the country’s future economic competitiveness and strive towards the reduction of carbon emissions in the
transportation sector.
The project will be separated in four (4) Work Packages and led by TransPod (TP) and one of its civil
engineering partner (HT): 1. Project Management (Lead: TP), 2. Technology and Infrastructure analysis
(Lead: HT), 3. Economic Forecasting (Lead: TP), and 4. Dissemination & Communication (Lead: TP).
The following section provides a detailed description of each work package and associated project
activities:

WORK PACKAGE 1: Project Management

Work package number 1 Lead beneficiary TransPod

Work package title Project Management

Participant number 2

TransPod in Alberta - Detailed Proposal - December 2019


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Short name of participant TP, HT
End
Start month 1 20
month

Objectives
WP1 focuses on providing state of the art project management throughout the project’s duration with the
goal of ensuring excellence in budget management, time keeping and risk mitigation.
The WP1 will be divided in 2 main tasks:
• Detailed work plan
• Ongoing Project Management
Description of work
Task 1.1 Detailed Work Plan
In order to kickstart the project, the project management office will start planning the entire project with its
relevant stakeholder and brief the whole team on a weekly basis. The project planning will address the
budget split as well as the potential risks and mitigation solutions available. The work plan will be very
detailed and involve all the relevant project actors in order to ensure the project delivery in a timely manner.
Task 2.2 Ongoing Project Management
Partner meetings, tools and procedures
TransPod will organise partner meetings and Steering Board meetings every four month. TransPod will
setup a file sharing platform between project members. Finally, the PM will prepare a Handbook for
participants including procedures for communication and reporting.
The Steering board will meet every four months. The project coordinator will chair the Steering Board
meetings. Minutes will be taken and shared with the members of the Steering Board, highlighting the
project’s main challenges and approach to be taken.
The Steering Board is responsible for the overall work, report on the progress, tasks performed and
challenges/problems to be solved. The members of the Steering Board shall take executive decisions
ensuring a smooth operation of the project. The frequency of the meetings will depend on the project’s
challenges.
Outcome: Steering Committee, Advisory Board, Project handbook, file-sharing platform, reports.
Project Management
Day-to-day project management will be carried out by the project manager, who will supervise the project
and monitor the overall-progress, the Deliverables and Milestones and flow of information between WP’s.
Periodic and final reports will be made throughout the duration of the project.
Outcome: Day-to-day project management, periodic and final reports.
Financial Management
The project manager will be in charge of the overall budget and monitor the financial progress. Reports will
be prepared by the end of each four-month period.
Outcome: Day-to-day financial management and four-month financial reports.
Data Management

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A data management plan shall be created following the first 4 months of the project. The PM will supervise
the data management processes throughout the project by setting-up a data policy used by partners and
project members. The PM office will also ensure the encryption of the communications and data sharing to
address the project privacy risks.
Outcome: Data policy guidelines, Data encryption
Deliverables
The completion of Work Package 1 will yield the following deliverables:
D.1.1 – Project handbook and file-sharing platform
D.1.2 – Status reports every 4 months
D.1.3 – Financial reports every 4 months
D.1.4 – Data policy handout

WORK PACKAGE 2: Technical and Infrastructure Analysis

Work package number 1 Lead beneficiary HT


Work package title Technology and Infrastructure Analysis
Participant number 2
Short name of participant TP, HT
End
Start month 3 12
month

Objectives
WP2 focuses on setting up the framework of analysis used in the feasibility study. This WP will be composed
on four main tasks:
• Review of high-speed Rail transport cost-benefit analyses relevant to hyperloop
• Review of existing hyperloop technologies and adapted forecasting methodologies
• Review of route options
• Forecasting of construction and operating costs
Description of work
Task 2.1 Review of high-speed Rail transport cost-benefit analyses relevant to hyperloop
The first task will have the objective to review the previous high-speed Rail studies and other transportation
cost-benefit analyses made in the Edmonton – Calgary Edmonton, as well as other studies made in the
United States and internationally about high-speed freight. The review of the previous studies, white papers,
as well as research papers on the high-speed movement of goods and people will help develop a framework
of analysis by targeting the proper impact categories for the Cost-Benefit Analysis and demand models.
Outcome: Pre-Analysis framework defined.
Task 2.2 Review of existing hyperloop technologies and adapted forecasting methodologies
The second task will leverage the expertise of both Hatch and TransPod to study the existing hyperloop
design characteristics that could be suitable for commercial operations in the Calgary-Edmonton corridor.

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The corridor constraints will be assessed, and an adapted design will be proposed to be used as a base
case scenario in the feasibility study. Task 2.2 will simultaneously build upon the previous task and further
complete the analysis framework to be used in the feasibility study.
Outcome: Technical design definition and final analysis framework.
Task 2.3 Review of route options
This task will rely on the previous studies done with high-speed rail systems in the Calgary and Edmonton
corridor and select the best route for the hyperloop line. The previously designed route configuration
(suitable for high-speed rail projects) will be further analysed to fit with the technical considerations of the
hyperloop elevated infrastructure. The route design will also include the configurations of the passenger
stations and freight terminals located in Calgary, Calgary Airport, Red Deer, Edmonton Airport and
Edmonton. First nations representatives will be surveyed to determine if the infrastructure interferes with
indigenous land, and make the required design adaptations to avoid any conflicts with communities.
Outcome: Detailed route design for both freight and passenger applications
Task 2.4 Forecasting of construction and operating costs
Two studies have been made in the past with TransPod to determine the infrastructure costs of its simplified
hyperloop infrastructure design. The goal of this task is to build a model of infrastructure costs given the
specific terrain characteristics identified in the previous task and the optimal route design identified. With
the route design defined, Hatch will be involved in the valuation of infrastructure costs and the associated
procurement of materials.
After forecasting the infrastructure costs, an in-depth study will be conducted to value the operating costs
of the hyperloop system in a freight and passenger setting. The operating cost components will be later
reused in Work Package 3 to find the optimal system capacity. TransPod will assist Hatch by calculating
the required power consumption figures and maintenance cost of the gliding stock
Outcome: Forecast of the infrastructure costs of the Calgary-Edmonton line, valuation of operating costs
Deliverables
The completion of Work Package 2 will yield the following deliverables:
D.2.1 – Report on the previous relevant transportation studies
D.2.2 – Report on the adequate technology to be used in the analysis
D.2.3 – Report on the detailed route design used in the feasibility study
D.2.4 – Report on the forecasted infrastructure costs and operating costs

WORK PACKAGE 3: Economic Forecasting

Work package number 3 Lead beneficiary TransPod

Work package title Project Management


Participant number 1

Short name of participant TP, HT


End
Start month 5 17
month

TransPod in Alberta - Detailed Proposal - December 2019


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Objectives
WP3 will build upon the work achieved in WP2 by conducting economic forecasting of the defined hyperloop
system in the Calgary-Edmonton corridor.
The work package will be divided in six major tasks:
• Passenger demand forecasting
• Freight demand forecasting
• Review of existing transport policies applicable to hyperloop
• Financial and Cost-Benefit Analysis
• Impact Analysis
Description of work
Task 3.1 Passenger demand forecasting
The first task will focus on building an econometric model to forecast the passenger demand that could be
diverted from existing transportation modes to the proposed hyperloop system. The forecasting
methodology will be inspired from existing models applied in transportation economics for projects such as
high-speed rail lines and adapted with the technical specifications of the defined hyperloop design. Firstly,
the consortium will collect secondary data on current trips made within the corridor and identify both
business and leisure trips across all the transport modes available today. Second, a stated preference
survey questionnaire will be designed to identify traveller’s preference with regards to transport modes,
travel behaviour, willingness to pay, value of time savings and openness to travel behaviour change. The
survey staff hired by the consortium will collect data from volunteer respondents at Calgary and Edmonton
airports, and bus stations. Furthermore, the survey teams will be positioned alongside highway 2 to identify
a sample of license plates in order to send a questionnaire and gather additional data on road travel
behaviour.
Using the data gathered, an econometric analysis will be conducted in order to model the consumer’s
willingness to pay and forecast the potential demand associated with faster travel time and enhanced
convenience. A similar methodology yielded positive results for the Quebec-Windsor high-speed Rail study
conducted in 2011.
Outcome: Collection of primary and secondary data, passenger demand forecasting for hyperloop systems
Task 3.2 Freight demand forecasting
It is widely accepted among economists and transportation engineers that freight modelling is substantially
more complex than passenger demand modelling. For this reason, this task will heavily rely on surveys in
order to build a freight network model. To do so, a company survey will be built and sent to a wide list of
small, medium and large businesses involved in the movement of goods within the Edmonton Calgary
corridor as well as firms dealing with freight movements from the two large airports of the region. The
surveys will assess the volume, weight, frequency, and time value of the shipments transiting the corridor
and build a time sensitivity profile of the freight in the region. The results of this surveys will help provide
crucial information of the Value of Time Savings (VTS) associated with freight shipments and the rationale
for a high frequency, high-speed freight service within the corridor.
The results of these surveys will allow to build a network model of time sensitive freight flows within the
region and forecast the potential demand for a freight hyperloop.
Outcome: Collection of primary and secondary data, freight demand forecasting

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Task 3.3 Review of existing transport policies applicable to hyperloop
The earliest task in this work package will consist in reviewing the transportation policy and safety
regulations associated with the implementation of hyperloop systems. TransPod has already started to work
with Transport Canada on the safety regulations of vacuum train systems and will pursue additional safety
research in this work package. The review will analyse the different rail and aerospace policies in Europe
and North America to build an initial regulatory framework for hyperloop adapted to Canadian safety
standards and applicable in the Calgary-Edmonton corridor.
Outcome: Development of preliminary safety regulations
Task 3.4 Analysis of environmental and social impacts
In order to validate the sustainable characteristics of the hyperloop technology, task 4 will conduct a
complete environmental analysis on the impacts of implementing this new mode of transport.
A social acceptance survey will be conducted to evaluate the population’s positive and negative view of this
new mode of transport. First nations representatives would have been surveyed in WP 2 on any potential
conflict arising from the setup of this transportation infrastructure. In addition to the social acceptance
survey, a safety analysis will be conducted with the system in order to validate the adequate specifications
presented in the feasibility study. Finally, an analysis will be conducted to evaluate the environmental
externalities caused by the infrastructure and operations derived from the exploitation of this new mode of
transport.
Outcome: Social acceptance survey, safety analysis, environmental externalities
Task 3.5 Financial and Cost Benefit Analysis (CBA)
In order to provide policymakers with a relevant picture of the associated impacts of building a freight or
passenger hyperloop system, a Cost Benefit Analysis will be conducted alongside a Financial Analysis of
the system’s profitability. The CBA will be the result of the previous analyses conducted in the work
package. The final result will provide a net present value of the project, an Internal Return Rate (IRR) as
well a sensitivity analysis with different discount rates used.
Outcome: Project Net Present Value, Internal Rate of Return, Payback Time
Task 3.6 Impact Analysis
The final task of this work package will combine the findings of the CBA as well as the other tasks in order
to model the impacts of the implementation of this hyperloop system on the corridor’s socioeconomic
landscape. Potential impacts will be assessed on existing transportation modes and cargo flows, as well as
automobile use and buses. Finally, conclusions and recommendations will be made based on all the tasks
presented in WP3.
Outcome: Impact on other transport modes, conclusions and recommendations
Deliverables
Here are the following deliverables:
D.3.1 – Report on passenger demand and methodology used
D.3.2 – Report on freight demand and methodology used
D.3.3 – Report on transportation policies framework to be used for hyperloop
D.3.4 – Report on the environmental and social impacts of hyperloop
D.3.5 – Computed results of the CBA

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D.3.6 – Report on the impacts of the system

WORK PACKAGE 4: Dissemination and Communication

Work package number 1 Lead beneficiary TransPod


Work package title Dissemination and Communication
Participant number 1
Short name of participant TransPod
End
Start month 17 21
month

Objectives
WP4 provides a dissemination and communication framework for the feasibility study as well as the
dissemination and communication activities (implementation of activities). The main task of WP4 will be to
consolidate all the results obtained throughout the feasibility study period and combine the information in a
report that will be presented to Alberta Transportation and made available to the public.
This WP will be organised in two tasks
• Final Reporting for Alberta Transportation
• Public Dissemination
Description of work
Task 4.1 Final Reporting for Alberta Transportation
This talk will consolidate the final report on the economic impacts of the implementation of hyperloop
technology in the Calgary Edmonton corridor and will provide recommendations to policymakers on how to
prepare Canada for the introduction of this technology. Both costs and benefits will be clearly presented,
and policy recommendations will be made to facilitate the development of the technology in Canada. The
results of the feasibility study will be presented to Alberta Transportation as a first step after the completion
of the report.
Outcome: Presentation of the feasibility study
Task 4.2 Public Dissemination
The second task will aim to disseminate the results of the feasibility study to the public on the platform
TransPod research and social media. The goal of this public dissemination is to familiarise Canadians with
upcoming disruptive sustainable innovations in transportation and promote sustainable living.
Outcome: Enhanced public awareness on sustainable transportation
Deliverables
Here are the following deliverables:
D.4.1 – Final report to be delivered to Alberta Transportation
D.4.2 – Public version of the study results available online

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3.7. Work schedule
The project will be split in four distinct work packages, allowing to efficiently achieve the project milestones
and ensure on time and on budget delivery.
Traditionally, feasibility studies are conducted over time span ranging from a couple of months to 3 years
for larger project. The goal if this feasibility is to explore the potential of evacuated tube transportation to
strengthen Canadian transportation systems and supply chains. The duration of this study is required to be
longer than other feasibility studies as evacuated tube transport is an emerging technology and no
frameworks are currently designed to evaluate the safety, infrastructure design or economic benefits of
such a system. This project can be therefore considered as a pioneer in the industry, as the techniques
used in this study will be used as a benchmark for future projects and will be subject to generalisation for
other locations around the world.
The structure of this feasibility study follows a similar structure as high-speed rail studies, which includes
the review of existing technologies, route design, environmental concerns, demand modelling and impacts.
The longer span of this project will ensure the quality of each deliverable and reduce time risk as each task
will have enough time and resources allocated to it. The following table presents the work schedule
summary of the project.
Note: the following schedule assumes a starting date of April 1st, 2020.

- M 20
-2

-
-
ay
pr

pr
-A

-A
01

15

01

15
WP Task Sub-tasks Task Lead Start End Days
1 Project Management TransPod 2020-04-01 2021-12-01 609
1.1 Detailed Work Plan TransPod 2020-04-01 2020-06-01 61
1.2 Ongoing Project Management TransPod 2020-06-01 2021-12-01 548
2 Technology and Infrastructure Analysis HT 2020-06-01 2021-03-01 273
2.1 Review of High-Speed transport cost-benefit analyses relevant to hyperloop TransPod/HT 2020-06-01 2020-08-01 61
2.1.1 Review of the High-Speed Rail studies undertaken in Alberta 2020-06-01 2020-07-01 30
2.1.2 Review of other Canadian and North American HSR studies 2020-06-15 2020-07-15 30
2.1.3 Review of worldwide high speed freight studies 2020-07-01 2020-08-01 31
2.2 Review of existing hyperloop technologies and adapted forecasting methodologies TransPod/HT 2020-06-01 2020-11-01 153
E 2.2.1 Existing hyperloop designs 2020-06-01 2020-08-01 61
E 2.2.2 Hyperloop technical requirements 2020-06-15 2020-09-01 78
E 2.2.3 Corridor constraints and requirements 2020-08-01 2020-10-01 61
E 2.2.4 Analyses needed for the study 2020-10-01 2020-11-01 31
2.3 Review of route options TransPod/HT 2020-06-01 2020-11-01 153
E 2.3.1 Representative Routes 2020-06-01 2020-08-01 61
E 2.3.2 Service and other parameters 2020-06-15 2020-08-01 47
E 2.3.3 Calgary to Red Deer 2020-08-01 2020-09-15 45
E 2.3.4 Red Deer to Edmonton 2020-09-15 2020-11-01 47
2.4 Forecasting of construction and operating costs TransPod/HT 2020-11-01 2021-03-01 120
2.4.1 Approach and methodology 2020-11-01 2020-12-01 30
2.4.2 System configuration 2020-11-15 2020-12-15 30
2.4.3 Estimating costs for infrastructure 2020-12-01 2021-01-15 45
2.4.4 Estimating costs for start-up 2021-01-01 2021-02-01 31
2.4.5 Overall cost estimates 2021-01-15 2021-02-15 31
2.4.6 Risk Analysis 2021-02-01 2021-03-01 28

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3 Economic Forecasting TransPod 2020-08-01 2021-09-15 410
3.1 Passenger demand forecasting for hyperloop TransPod/HT 2021-03-01 2021-06-01 92
3.1.1 Forecasting methodology 2021-03-01 2021-04-01 31
3.1.2 Existing travel by public modes 2021-03-01 2021-04-01 31
3.1.3 Existing travel by auto and trucks 2021-03-01 2021-04-01 31
3.1.4 Stated preference survey 2021-03-15 2021-05-15 61
3.1.5 Ridership forecasting models 2021-05-01 2021-06-01 31
3.1.6 Ridership and revenue sensitivity and Risk Analysis 2021-05-01 2021-06-01 31
3.2 Freight demand forecasting for hyperloop TransPod/HT 2021-03-01 2021-06-01 92
3.2.1 Forecasting methodology 2021-03-01 2021-04-01 31
3.2.2 Existing freight volumes in the corridor 2021-03-01 2021-04-01 31
3.2.3 Business stated preference survey 2021-03-15 2021-05-15 61
3.2.4 Freight forecasting models 2021-04-15 2021-05-15 30
3.2.5 Line revenue sensitivity and Risk Analysis 2021-05-01 2021-06-01 31
3.3 Review of existing transportation policy applicable to hyperloop TransPod/HT 2020-08-01 2020-11-15 106
3.3.1 Approach and Methodology 2020-08-01 2020-09-01 31
3.3.2 Review of passenger rail policies in Europe and North America 2020-08-15 2020-10-01 47
3.3.3 Review of freight rail policies in Europe and North America 2020-09-01 2020-10-15 44
3.3.4 Review of passenger air policies in Europe and North America 2020-08-15 2020-10-01 47
3.3.5 Review of cargo air policies in Europe and North America 2020-09-01 2020-10-15 44
3.3.6 Suggestions of Hyperloop legal framework 2020-09-15 2020-11-15 61
3.4 Analysis of environmental and social impacts TransPod/HT 2020-11-15 2021-04-01 137
E 3.4.1 Analysis of environment and social issues 2020-11-15 2020-12-15 30
E 3.4.2 System safety 2020-12-01 2021-01-15 45
E 3.4.3 Noise and vibrations considerations 2021-01-01 2021-02-01 31
E 3.4.4 Atmospheric emissions analysis 2021-02-01 2021-03-01 28
E 3.4.5 Migration measures 2021-02-15 2021-03-15 28
E 3.4.6 Overview of regulatory approval 2021-03-01 2021-04-01 31
3.5 Financial and Cost-Benefit analysis TransPod/HT 2021-06-01 2021-08-01 61
3.5.1 Passenger Cost-Benefit Analysis 2021-06-01 2021-07-01 30
3.5.2 Freight Cost-Benefit Analysis 2021-06-01 2021-07-01 30
3.5.3 Mixed Cost-Benefit Analysis 2021-07-01 2021-08-01 31
3.6 Impact Analysis TransPod/HT 2021-07-01 2021-09-15 76
3.6.1 Overview of impacts of hyperloop on other transport modes 2021-07-01 2021-08-01 31
3.6.2 Potential impacts on rail freight and passenger 2021-08-01 2021-09-01 31
3.6.3 Potential impacts on commuters and urban traffic 2021-08-01 2021-09-01 31
3.6.4 Potential impacts on passenger airlines and air cargo 2021-08-01 2021-09-01 31
3.6.5 Potential impacts on intercity bus 2021-08-01 2021-09-01 31
3.6.6 Potential impacts on automobile use 2021-08-01 2021-09-01 31
3.6.7 Potential impacts on trucking 2021-08-01 2021-09-01 31
3.6.8 Multimodal considerations of hyperloop 2021-08-01 2021-09-01 31
3.6.9 Safety impacts on existing modes 2021-08-01 2021-09-01 31
3.6.10 Conclusions and recommendations 2021-08-15 2021-09-15 31
4 Dissemination and Communication TransPod 2021-08-01 2021-12-01 122
E 4.1 Final report TransPod 2021-08-01 2021-11-01 92
E 4.1.1 The state of hyperloop technologies 2021-08-01 2021-09-01 31
E 4.1.2 Representative routes and stations 2021-08-01 2021-09-01 31
E 4.1.3 Ridership and revenue 2021-08-15 2021-09-15 31
E 4.1.4 Construction and other capital costs 2021-09-01 2021-10-01 30
E 4.1.5 Social and economic impacts in the corridor 2021-09-15 2021-10-15 30
E 4.1.6 Supporting policies and recommendations 2021-10-01 2021-11-01 31
E 4.1 Public Dissemination TransPod 2021-11-01 2021-12-01 30

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3.8. Project Milestones
The project will revolve around three main milestones to ensure proper delivery. The following tables
provide an overview of the project milestones and the timeline associated with each:
Work Packages WP lead Project Months

02 4 6 8 10 12 14 16 18 20 22 24

WP1 Project Management TransPod

WP2 Technology and Infrastructure Analysis HT

WP3 Economic Forecasting TransPod

WP4 Dissemination and Communication Both

No Milestone Month
M1 Technology selected, Route design selected, Cost framework Defined 11

M2 Cost-Benefit Analysis and Impact Measurements Completed 18

M3 Final report completed and submitted to Alberta Transportation and dissemination 20

The first milestone will be the completion of all the technical specifications for the system studied. Choosing
the right technology can be considered to be the project’s critical path, as the decisions taken during this
phase will directly impact the findings of the other project tasks.
The second milestone will be the completion of the Cost-Benefit Analysis and impact measurements. The
work on this milestone will overlap with the previous one, as the regulatory requirements of the system will
be studied iteratively alongside the design specifications made in WP2.s
Finally, the last milestone will complete the project by disseminating the results to Alberta Transportation
as well as the public.

3.9. Project delivery method

Current status of the project planning


As shown in this proposal, the Work Packages are clearly defined, and each task has a specific associated
timeline and resources dedicated to its completion.
The project will not start “from scratch”. Indeed, evacuated tube transportation research has been actively
conducted by TransPod and its industrial partners. To date, the infrastructure design to be used in the
feasibility study is almost complete and its cost estimates have been preliminarily studied by TransPod’s
partners4. Furthermore, TransPod realised a pre-feasibility cost benefit analysis which provided information
on the available data and allowed to formulated preliminary hypotheses on the social benefit of
implementing hyperloop systems.

4
https://transpodhyperloop.com/wp-content/uploads/2017/07/TransPod-infrastructure_EN_July-17-update2.pdf

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The project will therefore build upon the knowledge acquired during previous research and leverage the
expertise of TransPod’s partners.

Project Deliverables
Each work package will provide a set of deliverables required for the completion of future tasks and
dissemination of the results to Alberta Transportation and the public. The following table presents a
summary of the deliverables presented in the Work Package descriptions:

No Deliverables
WP 1: Project Management
D.1.1 Project handbook and file-sharing platform
D.1.2 Status reports every 4 mon
D.1.3 Report on the detailed route design used in the feasibility study
D.1.4 Data policy handout
WP 2: Technology and Infrastructure Analysis
D.2.1 – Report on the previous relevant transportation studies
D.2.2 – Report on the adequate technology to be used in the analysis
D.2.3 – Report on the detailed route design used in the feasibility study
D.2.4 – Report on the forecasted infrastructure costs and operating costs
WP 3: Economic Forecasting
D.3.1 – Report on passenger demand and methodology used
D.3.2 – Report on freight demand and methodology used
D.3.3 – Report on transportation policy framework to be used for hyperloop
D.3.4 – Report on the environmental and social impacts of hyperloop
D.3.5 – Computed results of the CBA
D.3.6 – Report on the impacts of the system
WP 4: Dissemination and Communication
D.4.1 – Final report to be delivered to Alberta Transportation
D.4.2 – Public version of the study results available online

3.10. Performance measurement strategy

Execution plan Strategy


To ensure a proper execution, the consortium will be following the principles of a Lean Enterprise:
• Baselines will be set and required target performance levels will be set.
• The PM will investigate processes and causes for gaps. Create a mitigation plan when required
• Execute the improvements identified. Use Lean tools to fit the problem such as VSM, process flow
charts and root cause analysis tools.
The PM will document, monitor, graph the results. Assign accountability to hold the gains.
• Execution to control TransPod’s organization such as quality, schedule, cost, HSE, or procurement
is based on:
• Set/Communicate Objectives/Expectations
• Execute as per the initial plan
• Check, process control the day to day work

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• Improve existing processes and enforce everybody’s accountability based on initial/agreed
objectives.

Project Metrics
To efficiently monitor the performance of each task, the project will be following the earned value
methodology which allows to integrate scope, time and cost for measuring project performance. The earned
value is a measure of work performed expressed in terms of the budget authorized (planned cost) for that
work. It is used in conjunction with the actual cost of work scheduled to calculate a performance ratio that
tells whether a project is over or under budget. By adding the total budgeted costs for labor and resources
for the project, the Planned Value (PV) can be calculated. For instance, if a task has a PV of $10,000 that
is 40% done, the Earned Value (EV) = $10,000 x 0.40 = $4,000. The following table provides a summary
of the measurement metrics that will be used in the project:

Question Answer Acronym

How much work should be done? Planned Value (or BCWS) PV

How much work is done?


Earned Value (or BCWP) EV
Calculation: PV * % Work Completed

How much did the work done actually


Actual Cost (or ACWP) AC
cost?

What was the total job supposed to Budget at Completion (Total


BAC
cost? Budget)

Schedule Variance
How is the project performing in terms
(+ variance, ahead of SV
of schedule? EV - PV
schedule)

How is the project performing in terms Cost Variance


CV
of cost? EV-AC (+ variance, below budget)

How is project performing according to


Schedule Performance Index SPI
the overall project schedule? EV/PV

How is the project performing


according to the overall project Cost Performance Index CPI
budget? EV/AC

What is the combined impact of


schedule and cost variances relative to Control Ratio CR
earned value? SPI x CPI

Project performance will be monitored every month by the project manager with the help of the Cost
Performance Index (CPI) and Schedule Performance Index (SPI). The value of these indexes will provide
clear metrics on the project performance at every time:

Index Cost (CPI) Schedule (SPI)


>1.00 Under cost Ahead of schedule
=1.00 On cost On schedule
<1.00 Over cost Behind schedule

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The measure of the project performance will be compared with the variance of costs and schedule
performance (comparing how far each actual data point is from the baseline value). Variances can be
typical, indicating a systemic problem in either the plan or the execution of the plan or atypical indicating a
unique problem in either the plan or the execution of the plan. Following the monthly control of the variances,
the project schedule will be re-adapted accordingly to allocate more resources to the tasks requiring more
budget or time and cut where tasks tend to be ahead of schedule and under budget.
It is expected that the tasks on the project’s critical path (technology analysis) will have to be carefully
monitored to potentially allocate more resources to ensure the timely delivery of the project.

Data
Outcomes / Performance Current Performance Source of
collection
outputs Indicator performance Target Data
Frequency

Task Project initial


completion budget Accounting
Earned Value vs
(applicable for CPI and SPI Planned Value Project data collected
Actual Cost
each task of accounting daily
the project) books

Monthly status
Budget and report and
Work Package Earned value vs Planned Value
CPI and SPI accounting data collection
Completion Actual Cost for the WP
summary on WP
delivery

3.11. Benefits of the Project


In November 2016, Transport Canada launched Transportation 2030: A Strategic Plan for the Future of
Transportation in Canada, highlighting the need for innovation and the integration of new technologies in in
transportation in Canada. This proposal’s scope is a natural fit for the strategic plan, as it will explore the
use of disruptive transportation technologies applicable to freight and passenger transport. The feasibility
study will leverage Canadian expertise in engineering research and educate citizens and policymakers on
the advantages and disadvantages of developing hyperloop systems in the country.
The pre-feasibility study conducted by TransPod identified that the potential implementation of a hyperloop
line in the Calgary Edmonton corridor will provide the region with major environmental, safety, and time
savings benefits. Overall, the project is expected to generate a net social return after 30 years. The Cost-
Benefit Analysis presented in appendix E further elaborates the background of this feasibility study.
The proposed feasibility study will validate the initial trends identified in the CBA and provide Alberta
Transportation with the following material:
• Report on the best evacuated tube transport technology to be used in the Calgary – Edmonton
Corridor, the most suitable route for the infrastructure and the associated construction and
operating costs.
• Report on the existing and future passenger demand for high-speed high frequency intercity
transport in Alberta with ridership forecasts of hyperloop tube transportation systems.
• Report of the current and forecasted flows of time sensitive freight within the Calgary and Edmonton
corridor and the willingness to pay of freight companies and users of freight services, as well as a
detailed pricing model.
• Report on the environmental and societal impacts of implementing hyperloop lines.

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• Report on the economic costs and benefits associated with the implementation of a hyperloop line
in the Calgary – Edmonton corridor, with impacts generalizable to other intercity links. This report
will be presented to Alberta Transportation and shared with the public to raise awareness of
Canadians with regards to sustainable transportation and climate change.

Alignment with local, regional and national transportation priorities


With the motion passed by the City of Calgary on September 11, 2017, the city has expressed its interest
in acting towards exploring the associated benefits of implementing hyperloop technology for passenger
and freight applications, which will aim to help the province’s strategic transportation planning of the next
decade. The previous ministry of Transportation of Alberta also expressed its interest in exploring the
feasibility of this new technology, as the province is rapidly increasing the resources allocated to the
development of sustainable transportation solutions.
As technological development continues, this feasibility study directly answers to the provincial interest to
study new innovative modes of transportation. The results of the feasibility study will directly benefit decision
makers in Alberta which will develop a better understanding of the associated benefits of the technology in
the province’s most populous corridor.

Exposure, marketing and export development


The development of hyperloop technologies has attracted a lot of attention from people all over the world
since its popularisation in 2013. Opening offices in Calgary will allow the city to leverage this international
interest by positioning Calgary as an innovation hub for disruptive technologies and encouraging bold
thinking. The City could leverage this image to attract other industries and professionals. On top of this, the
City will benefit from increased tourism and political attention during the second phase of the project, when
the test track will be implemented.
The knowledge acquired by many companies and professionals in the Calgary region will become highly
sought after, not only with regards to the vacuum train industry but for many subbranches such as
metalworking, vacuum technology, power electronics, artificial intelligence, project management, etc. This
knowledge will become a strong export asset for Calgary, as local companies will grow their businesses
abroad and participate to improving and diversifying Alberta’s trade balance.
Finally, the local knowledge acquired during the research and development phase, including the knowledge
associated with conducting feasibility studies and designing hyperloop tracks, will offer great export
capabilities. If the data and the local specifications vary from one place to another, the general framework
and the processes are duplicable and can be exported globally.

3.12. Aboriginal consultations


First nations representatives will be surveyed to determine if the infrastructure interferes with indigenous
land, and make the required design adaptations to avoid any conflicts with communities. This step is an
important part of WP2 which will be focusing on dealing with the route design. The preliminary study done
by TransPod identified that the initial route design would not cause any conflicts with aboriginal communities
in the corridor, as the infrastructure will be built alongside Highway 2 which is located on federal land.
Nevertheless, the consortium acknowledges that a deeper analysis must be conducted to ensure that no
conflict of interests occur with the proposed location of the study and the type of transportation system
developed.
For this reason, WP3 will analyse the social implications of this new infrastructure and will analyse all the
possible negative externalities following the planning, construction and operation of the hyperloop system.

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3.13. Public Financing Rationale
By championing the project, Alberta Transportation will be supporting the provincial efforts to explore new
resilient and sustainable transportation systems and improve current transportation corridors. The
deliverables presenting the complete assessment of the technology and economic profitability will be
directly available to Alberta Transportation. Moreover, TransPod and its partners will cover the cost of the
study, which minimises the risks for the government of Alberta.
As Transport Canada strives to provide Canadians with efficient and reliable modes of transport, the
investment in this study represents a low-risk opportunity to acquire knowledge on the potential of
evacuated tube transportation in the country.

3.14. Investment Rationale


For TransPod, undertaking a feasibility study in an existing corridor is an important step forward in order to
improve its scientific knowledge of tube transportation systems. Developing innovative transportation
solutions requires to have a complete understanding of the socioeconomic constraints surrounding the
deployment of new transportation systems. The proposed study will achieve these goals and set the path
towards developing improved transportation systems.

3.15. Activity expenditure breakdown


The following table provides a breakdown of the project costs.

Person Months Required Start End WP Months Staff Total

WP 1 : Project Management
1.1 Detailed Work Plan 2020-04-01 2020-06-01 2.0 11.0 12.0
1.2 Ongoing Project Management 2020-06-01 2021-12-01 18.0 3.0 20.0
WP 2 : Technology and Routing Analysis
2.1 Review of High-Speed transport cost-benefit analyses relevant to hyperloop 2020-06-01 2020-08-01 2.0 4.0 8.0
2.2 Review of existing hyperloop technologies and adapted forecasting methodologies 2020-06-01 2020-11-01 5.0 4.0 13.0
2.3 Review of route options 2020-06-01 2020-11-01 5.0 6.0 25.0
2.4 Forecasting of construction and operating costs 2020-11-01 2021-03-01 4.0 6.0 24.0
WP 3 : Economic Forecasting
3.1 Passenger demand forecasting for hyperloop 2021-03-01 2021-06-01 3.0 6.0 10.5
3.2 Freight demand forecasting for hyperloop 2021-03-01 2021-06-01 3.0 6.0 10.5
3.3 Review of existing transportation policy applicable to hyperloop 2020-08-01 2020-11-15 3.5 2.0 7.0
3.4 Analysis of environmental and social impacts 2020-11-15 2021-04-01 4.5 4.0 18.0
3.5 Financial and Cost-Benefit analysis 2021-06-01 2021-08-01 2.0 4.0 10.5
3.6 Impact Analysis 2021-07-01 2021-09-15 2.0 3.0 6.0
WP 4 : Dissemination and Communication
4.1 Final report 2021-08-01 2021-11-01 5.0 5.0 14.0
4.2 Public Dissemination 2019-11-01 2019-12-01 1.0 1.0 1.0
Total Person Months 179.5

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Compensation (CAD) Start End WP Months Staff Total

WP 1 : Project Management 20.0 14.0 $ 283,333


1.1 Detailed Work Plan 2020-04-01 2020-06-01 2.0 11.0 $ 100,833
1.2 Ongoing Project Management 2020-06-01 2021-12-01 18.0 3.0 $ 182,500
WP 2 : Technology and Infrastructure Analysis 16.0 20.0 $ 500,833
2.1 Review of High-Speed transport cost-benefit analyses relevant to hyperloop 2020-06-01 2020-08-01 2.0 4.0 $ 60,000
2.2 Review of existing hyperloop technologies and adapted forecasting methodologies 2020-06-01 2020-11-01 5.0 4.0 $ 95,833
2.3 Review of route options 2020-06-01 2020-11-01 5.0 6.0 $ 175,000
2.4 Forecasting of construction and operating costs 2020-11-01 2021-03-01 4.0 6.0 $ 170,000
WP 3 : Economic Forecasting 18.0 25.0 $ 402,500
3.1 Passenger demand forecasting for hyperloop 2021-03-01 2021-06-01 3.0 6.0 $ 50,000
3.2 Freight demand forecasting for hyperloop 2021-03-01 2021-06-01 3.0 6.0 $ 50,000
3.3 Review of existing transportation policy applicable to hyperloop 2020-08-01 2020-11-15 3.5 2.0 $ 58,333
3.4 Analysis of environmental and social impacts 2020-11-15 2021-04-01 4.5 4.0 $ 123,750
3.5 Financial and Cost-Benefit analysis 2021-06-01 2021-08-01 2.0 4.0 $ 78,750
3.6 Impact Analysis 2021-07-01 2021-09-15 2.0 3.0 $ 41,667
WP 4 : Dissemination and Communication 6.0 6.0 $ 110,000
4.1 Final report 2021-08-01 2021-11-01 5.0 5.0 $ 103,333
4.2 Public Dissemination 2019-11-01 2019-12-01 1.0 1.0 $ 6,667
Total $ 1,296,667

OTHER EXPENSES (CAD) Total


WP 1 : Project Management $210,000
WP 2 : Technology and Infrastructure Analysis $110,000
WP 3 : Economic Forecasting $210,000
WP 4 : Dissemination and Communication $10,000
Total $ 540,000

TOTAL EXPENSES (CAD) Total


WP 1 : Project Management 493,333
WP 2 : Technology and Infrastructure Analysis 610,833
WP 3 : Economic Forecasting 612,500
WP 4 : Dissemination and Communication 120,000
Subtotal 1,836,667
8.88% Contingency on HR costs 163,333
Total Including contingency 2,000,000

Additional financing
In the event of a work package exceeding its planned budget, the consortium’s lead investor Angel
Investments will cover the required additional expenses.

3.16. Project Risks


Risk management is a part of project management with the purpose to identify and mitigate issues that
could jeopardise project success. The purpose of the project risk management process is to ensure a
successful outcome of the project by actively dealing with potential issues that may put the project at risk.
This involves engaging the project participants in actions to increase the probability and impact of positive
events and decrease the probability and impact of events averse to purpose of the project. The vision is to
use the risk management process as an instrument for putting risks on the agenda of the project, and to
support decision and prioritisation. The major research risks and contingencies have been identified and
qualified. The following table dresses a portrait of TransPod’s risk management strategy:

Ranking Measures to reduce


Contingency
WP Risk risk already in the work
Plan
Risk Impact plan

WP1 Work will be re-


Loss of a Partners are well
Project Low Medium allocated
project partner committed to the project
Management internally

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Additional finding
may be provided
Budget will be precisely
Exceeding by Angel
Low High monitored throughout
planned budget Investments,
the project
TransPod’s lead
investor
Additional
Time and accountability
Delay of WP resources will be
Low Medium are predefined and
milestones allocated for
confirmed
speed
Difficulties to
The best alternative will
WP2 reach In case of a tie,
be voted among the
Technical and consensus on two scenarios can
Medium High project team leaders and
Infrastructure the technology be done for the
the winning technology
Analysis to be used in analysis
will be studied
the study

The surveys will be Additional surveys


Lack of
designed according to will be conducted
relevant data
Low High well established in case of failure
following the
templates used in to acquire
surveys
WP3 previous studies relevant data
Economic
Forecasting
Failure to The team will be
Additional
obtain relevant composed of experts in
analyses can be
results with the Medium High their respective fields,
conducted in case
econometric which will reduce the risk
of a major flaw
models of flawed analysis

TransPod will
inform Alberta
WP4 The final report
Omitted information will Transportation of
Dissemination and is missing Low Low
be unlikely all the flaws
Communication information
related to the
study

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4. Short-Term: Research and
Development
4.1. Overview and objectives
The short-term plan for TransPod in Alberta is to leverage the local expertise in Calgary and open a
research centre focused on developing key Intellectual Property (IP) that will significantly advance the
technology and set the groundwork for spin-offs. The scope of work for the project will revolve around
infrastructure, artificial intelligence, route design, testing sites, and feasibility studies.
The Research Centre is a $19M project that will be conducted during a minimum period of 2 years and act
as a founding block for certification and commercialisation.
Known for its expertise in pipeline technology, AI, geomatics, and construction, the City of Calgary
represents a perfect fit for establishing this research centre. Indeed, the development of evacuated tube
transport technology will require advanced expertise that is particularly well suited for local talents.
The studies that will be conducted in this Research Centre will:

• Create jobs and secure IP.


• Take advantage of Calgary’s local expertise in metal and pipe manufacturing, AI and autonomous
vehicles, road design and geomatics.
• Pave the way for future industrial and academic partnerships.
• Prepare the installation of the full-scale, 10km long test track.
• Initiate the work to be done for the construction of a future TransPod line between Calgary and
Edmonton.
Here is a summary of the various research activities to be conducted in the research center:
R&D on materials, tube, and metal fabrication: Design the requirements for the tube that is the most
important part of TransPod infrastructure. Strategic IP would be generated while studying key components
such as large expansion joints, airlocks, power transmission and switching.
R&D on AI and autonomous vehicles: The TransPod vehicles behave like a fleet of autonomous vehicles.
Our plan is to collaborate with local experts and academics to build the systems that will drive our pods,
and that can also be applied to other fleet of unmanned vehicles.
Route design: This activity will build up on local expertise in geomatics to create road design tools not only
for hyperloop lines, but also for major grounds transportations projects. This design will include station
design, construction, and energy management components.
Engineering of the test track: This activity would prepare the construction of a future test track in Alberta
leading to the complete testing of the technology and its certification. The engineering work will create
significant expertise in construction and materials.

4.2. Budget and financing


This project will be primarily financed by TransPod and its industrial partners. The total project envelope is
$19 million. This two-year budget comprises the completion of five work packages described in the
subsequent sections.

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The preliminary budget for the project is the following:

2018/2019 2019/2020

Direct Labour 5,675,000 5,810,000

Contractors 600,000 834,000

Direct Materials 280,000 397,000

Equipment & Machinery 50,000 -

Land and Building 264,000 264,000

Patents - 90,000

Travel (in Alberta) 18,000 36,000

Travel (in Canada) 6,000 6,000

Travel (international) 9,000 18,000

On-site surveys 24,500 24,500

Overhead 2,270,000 2,324,000

Subtotal 9,196,500 9,803,500

Total cost 19,000,000

4.3. Socio-economic benefits


The research and development centre will bring sizeable benefits to the City of Calgary. Though the
activities will be concentrated in Calgary, there will be spillovers throughout the province of Alberta. We
have presented the socioeconomics of this short-term plan in five categories: industry diversification,
clustering effect, financial benefits, exposure, marketing and exporting opportunities, and sustainability.

Industry diversification
Today, the energy sector represents 31.6% of Calgary’s GDP, 67% of Alberta’s exports, and 50% of capital
expenditures in Alberta. While the industry created many jobs, the reliance of the economy on a single
industry makes it vulnerable to commodity cycles, such as the one observed back in 2014-2015, which had
negative effects on Calgarians. While Calgary Economic Development’s mission strives to achieve
sustainable development, the current economic structure of the City contradicts this goal. The TransPod
research centre brings a concrete solution to the lack of diversification of the city by bridging together many
industries and innovations to build tomorrow’s transportation systems.
The work packages presented in this proposal are a direct reflection of the sectoral diversity shining through
this project. For example, the artificial intelligence components of the control systems developed in the
second work package will involve expertise from other industries and practices. The workforce involved in
this project will have the ability to spread their knowledge to other rising industries if they choose to exit
their job.
Also, we have decided to include both key industries and emerging sectors in our work packages, to build
on existing expertise (for example: pipeline and metal-forming industries) while supporting the growth of
innovative and new sectors (for example AI and geomatics).

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Clustering effect
The implementation of the TransPod project in Calgary will generate a clustering effect which will attract
other industries, contractors, researchers, and suppliers. Indeed, the technology developed by TransPod
will require partnerships with other companies for manufacturing, 3D printing, metalworking, chemicals and
coolants, energy, and software development.
A successful example of such a cluster in Alberta is the MaRS Discovery District in Toronto. This centre
hosts an incubator, a manufacturing lab with Autodesk, wet and dry labs for medical research, conferences
and training sessions, and gathers innovative and disruptive companies. According to the Government of
Ontario, “This increased economic activity results in additional consumer and housing expenditures. It also
leads to additional investment expenditures in the province needed to supply the production inputs to MaRS
and the spin-off effects to consumer and housing expenditures.” While the TransPod research centre is a
project at a lesser scale, the range of economic impacts is expected to be similar and will attract more
businesses and consumers to the Calgary region because of the type of activities undertaken by TransPod
and its partners.
Looking forward, the expansion of the research centre could have a much larger effect. Similar examples
of clustering effects can be found in other places:

• The aerospace cluster in Quebec (nearly 200 companies, 180 SMEs (sub-contractors and product
manufacturers), 40,160 jobs and sales of $15.5 billion in 2015, over 80% of Québec’s production
destined for export)
• The Great Lakes automotive manufacturing cluster in Alberta ($19 billion contribution to GDP, more
than 125,000 people, with an additional 400,000 people in aftermarket services and dealership
networks)
• Aerospace Valley in Toulouse, France, following the implementation of Arianespace locally
(gathering 124,000 industrial employees, 8,500 researchers and scientists, 475 R&D projects
representing an accumulated value of 1.2 billion Euro covering most scientific and technical fields
related to the various sectors of aerospace)
• Finally, research studies expect the size of the hyperloop market to reach up to $6 billion in 2026.
TransPod is looking forward to supporting Alberta get a share of this market5.

Industry diversification
The job creation for research and development activities will generate $5.39 million CAD in net direct
income/year, $1.17 million CAD in indirect labour income/year, and $1.90 million CAD in induced labour
income per year (resulting from an increased household consumption). Furthermore, at least $2.14 million
in income taxes will be paid to the government per year. The total yearly GDP impact for the research centre
will be $7.74 million direct, $2.24 million indirect, and $2.83 million induced. This project will create 61 direct
jobs, 13 indirect jobs, and 17 induced jobs.
This forecast used a very conservative average multiplier of 1.5. The economic multiplier could be vastly
superior if the impact is similar to the MaRS cluster, which has a 1.9 multiplier (the GDP would be $26.6
million CAD). Furthermore, if additional years of privately funded research could increase the impact tenfold,
TransPod would gradually move its headquarters from Toronto to Calgary, the research centre staffing will
be increased to 200 people after 5 years of operations. It is important to remember that the economic

5
https://www.marketsandmarkets.com/PressReleases/hyperloop-technology.asp and
https://www.alliedmarketresearch.com/hyperloop-technology-market

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multipliers for the type of research undertaken by TransPod are relatively high and will create a substantial
amount of indirect and induced jobs.
The following figures provide an overview of the economic benefits for the short-term project in Alberta:

Economic Impacts on Alberta Direct Indirect Induced Total


Income effects 5.39 1.17 1.90 8.46
GDP Impact 7.74 2.24 2.83 12.81
Output 7.95 2.73 5.62 16.30
Employment (FTE-Years) 61.00 13.00 17.00 91.00

200.00 35.00
Economic impacts from the Economic impacts from the R&D on the
180.00R&D on the Alberta economy Alberta economy (M. of CAD)
30.00
160.00 (in FTE)
140.00 25.00

120.00 20.00
91.00 16.30
100.00
17.00 15.00 12.81
80.00 5.62
13.00 2.83
60.00 10.00 8.46
2.24 2.73
40.00 1.90
61.00 1.17
5.00
20.00 7.74 7.95
5.39
0.00 0.00
Employment (FTE-Years) Income effects GDP Impact Output

Direct Indirect Induced Total Direct Indirect Induced Total

If the city attracts sufficient investment in high technology, the economic multipliers related to the high-
speed transportation industry could reach the same levels as what was seen in the oil and gas sector during
peak oil price, and significantly improve Alberta’s economy.

Exposure, marketing and export development


The development of hyperloop technologies has attracted a lot of attention from people all over the world
since its popularisation in 2013. Opening offices in Calgary will allow the city to leverage this international
interest by positioning Calgary as an innovation hub for disruptive technologies and encouraging bold
thinking. The city could leverage this image to attract other industries and professionals, and it will benefit
from increased tourism and political attention during the second phase of the project, when the test track
will be implemented.
The knowledge acquired by many companies and professionals in the Calgary region will become highly
sought after, not only with regards to the vacuum train industry but for many subbranches such as
metalworking, vacuum technology, power electronics, artificial intelligence, project management, etc. This
knowledge will become a strong export asset for Calgary, as local companies will grow their businesses
abroad and participate to improving and diversifying Alberta’s trade balance.
Finally, the local knowledge acquired during the research and development phase, including the knowledge
associated with conducting feasibility studies and designing hyperloop tracks, will offer great export
capabilities. If the data and the local specifications vary from one place to another, the general framework
and the processes are duplicable and can be exported globally.

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Achieving sustainability goals
TransPod’s technology has the potential to significantly reduce greenhouse gas emissions along the
Calgary - Edmonton corridor where a line may be implemented in the future. This reduction will stem from
the diversion of trucks, aircrafts, buses, and cars to the TransPod system, which is entirely electric. As a
result, Albertans will benefit from better air quality and lower levels of pollution, which will ultimately show
the strong commitment of Alberta towards sustainability. The first step to ensure this goal is to implement
this research centre in Calgary and raise awareness about sustainable transportation technologies.

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4.4. Scope of work
The activities that will be conducted in the research centre will focus on Calgary and Alberta core
competencies, while encouraging emerging industries to grow. We have divided the activities in five work
packages, detailed here below:
• Work Package 1 - R&D on materials, tube, and metal fabrication: Design the requirements for the
tube that is the most important part of TransPod infrastructure. Strategic IP would be generated
while studying key components such as large expansion joints, airlocks, power transmission and
switching.
• Work Package 2 - R&D on AI and autonomous vehicles: The TransPod vehicles behave like a
fleet of autonomous vehicles. Our plan is to collaborate with local experts and academics to build
the control systems that will drive our pods, and that can also be applied to other fleet of unmanned
vehicles.
• Work Package 3 - Feasibility and environmental studies: Feasibility studies and environmental
studies for future TransPod hyperloop lines, such as the one linking Calgary and Edmonton. The
knowhow and the expertise gained during this activity would be subject to export worldwide in
upcoming decades.
• Work Package 4 - Route design: This activity will build up on local expertise in geomatics to create
road design tools not only for hyperloop lines, but also for major ground transportation projects.
This design will include station design, construction, and energy management components.
• Work Package 5 - Engineering of the test track: This activity will focus on preparing the
construction of a future full-scale test track in Alberta, leading to the complete testing of the system.
The engineering process will create a significant expertise in construction and material science.

4.5. Milestones and deliverables


WP1: R&D on materials, tube, and metal fabrication
• M #1.1 Structural study and materials / Deliverable: Specifications of the pipe
• M #1.2 Expansion joints / Deliverable: Detailed design and prototype of the expansion joints
• M #1.3 Airlocks and switches / Deliverable: Detailed design and prototypes of both elements
WP2: R&D on AI and autonomous vehicles
• M #2.1 TransPod fleet management rules / Deliverable: Concept for managing TransPod’s fleet
• M #2.2 Communications systems software / Deliverable: Fully developed software
WPPP: Feasibility and environmental studies
• M #3.1 Working schedule and scope / Deliverable: working schedule
• M #3.2 Demand forecasting & environmental/social analysis / Deliverable: preliminary results
• M #3.3 Cost-Benefit Analysis & Input/Output Modelling / Deliverable: final report
WP4: Route design
• M #4.1 Selecting route-design tools / Deliverable: Benchmark on current tools
• M #4.2 First version of the route design software / Deliverable: Standard template
• M #4.3 Final version of the software / Deliverable: Route design software
WP5: Engineering of the Alberta full-scale 10km test track
• M #5.1 Initial specifications of the test track / Deliverable: Specifications of the test track
• M #5.2 Engineering of the track / Deliverable: Detailed Design
• M #5.3 Construction plan and procurement / Deliverable: Construction plan, list of suppliers

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5. Medium-term: Test Track
5.1. Overview and objectives
The TransPod full-scale test track (FSTT) in Alberta will accommodate the testing of all subsystems of the
TransPod vacuum train technology.
TransPod is currently establishing a half-scale track in France with the goal of testing critical vehicle
subsystems as well as vacuum dynamics associated with the tube infrastructure. Construction permits has
been be approved at the end of 2018, and construction work is scheduled for mobilization early 2020.
TransPod is developing this facility as a reduced scale test bed to complete vehicle testing in the most time
efficient manner. Using half-scale prototypes (1/2 diameter, 1/4 cross-section, about 30% track length)
applied at the same speed as full-scale tests significantly lowers development costs and expedites initial
testing in a phased approach. Critical subsystems underscoring TransPod’s technological leadership will
soon be tested at half-scale; including high-speed vehicle dynamics, propulsion, power transmission,
cooling systems, vacuum systems, communication system, and structural dynamics of the tube.
Once half-scale testing has been successfully completed in France, a transition into an operationally scaled
facility is planned to undertake testing of the entire TransPod system, in alignment with the final design
stage before commercialisation. The full-scale test track will be longer than the French test site (10km to
20km, versus 3km) to demonstrate ultra-high-speed performance (1200km/h) encompassing every
component of a commercial application, such as emergency exits, airlocks and expansion joints, safety air
refill systems, signaling and communication systems to test the circulation of several pods in the same tube.
In order to mitigate costs, the FSTT should be positioned within the alignment of a future commercial line
linking Calgary and Edmonton. Until an operational line is available, the FSTT will be used for system
development and testing of components / vehicles assembled by TransPod. With minor modifications,
vacuum pumping capacities can be increased to create deep vacuum cells that could be commercialized,
by offering service contracts to companies testing satellites or components intended for use in space.
Concurrently, TransPod is strategically assembling experts and policy makers in Canada and Europe into
industry working groups to develop a regulatory framework for this mode of transportation. Approval for this
initiative has been granted by the Honorable Marc Garneau, Minister of Transport in Canada, as well as
support from Carlo De Grandis, Policy Officer Rail Safety and Interoperability, at the European Commission.
TransPod has joined a European consortium of hyperloop companies to reach consensus on a common
certification methodology in support of requests to the EU for a vacuum train - hyperloop - regulatory
framework. Such international initiatives will require a progression of proof-of-concept trials and repeatable
demonstrations from testing facilities as validation, which is the rationale behind TransPod’s strategy to
undertake the development of two test tracks (France and Canada), to support working groups in both
regulatory environments.

5.2. Technical requirements

Breakdown of the facilities


The FSTT facility will require a host site with applicable zoning and sufficient size to accommodate the
functions identified herein, including but not limited to a 10 to 20 km tube track installed in a linear guideway
at a consistent elevation for testing of prototype vehicle systems at operational speeds for R&D and
regulatory demonstration purposes. Straight alignment of the tube track is a critical requirement; minor

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deviations such as slight curvatures may be accommodated, however such conditions will require prior
confirmation to determine suitability with operational tolerances and testing parameters.
The test facility shall be located on a single contiguous site, securable by perimeter fencing, ideally not
segmented by a public right-of-way, grade separations or other thoroughfares, although the test track
structure can be configured to cross rural lanes, buried or overhead utility corridors, and minor water
courses, should mandatory clearances and environmental approvals be attainable. Existing drainage
swales or ditches that can be crossed using traditional culvert liners and embankments are not considered
problematic.
The site shall have direct access to a public road with suitable right-of-way and adequate load capacity to
accommodate heavy construction equipment, semi-trailer trucks and emergency response vehicle traffic.
Supplementary entrances (minimum of 1) are required for safety, emergency response and serviceability
due to the length of the proposed compound. Tie-in connections to utilities/services shall include electrical
power, potable water source (or permissible wells), sewer (or permissible septic systems) and
communication network, as indicated herein.
The functional program for the test facility has four main components:
• Test track guideway (tube and infrastructure for prototype and full-scale vehicles testing)
• Main building (workshop, control room, offices, safety and security, etc.)
• Machinery building (for the vacuum pumping system, electrical converters, etc.)
• Secondary building (for turnaround operations)
Optional components that may be added to the test site, depending on the land availability:
• Low-speed loop (to test the turnaround operations as they would occur in a station)
• Extension of the track alignment for a longer test track (further testing, for next generation vehicles)
The functional components are described below for greater clarity.

Test track guideway


The test track requires a straight segment of land to serve as its guideway. The test track will be composed
of a linear assembly of 4m diameter steel tubes supported on concrete piers positioned at approximately
20m to 25m centres. Pier heights shall vary as dictated by topography, access clearances, surface drainage
requirements, and the presence of intersecting utility corridors to facilitate leveling the tubes at a constant
elevation (datum level) over its entire length. A continuous [gravel] roadway [5m] in width shall run adjacent
to the track for its entire length to provide vehicular access; roadway turn-around (laybys) shall be provided
at 2 km centres and may be located in conjunction with supplementary entrances.
Track guideway length: 10 kilometres minimum, up to 20 kilometres
Track guideway width: 25 metres minimum:
• 4 metres for tube (Phase 1)
• 6 metres for a provision for a second tube (2 meters between the two tubes + 4 meters for tube)
• 5 metres on one side as safety setback between the tube and the fence
• 10 metres on opposite side for a service roadway and 5m safety setback to the fence
Slopes and level variances in the test track elevation are problematic, as operational tolerances require it
to be installed at a constant datum elevation. Variances in site profiles can be accommodated within the
height of the piers, to within +/- [1.5m] tolerance along the entire length, however practical considerations

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related to tube accessibility by personnel from the grade level service road (for monitoring and testing) will
be evaluated on a case-by-case basis should this range be exceeded.
Site geotechnical characteristics and soil composition should be suitable for standard construction means
and methods for buildings, concrete piers foundations and service roadway construction. While the
presence of watercourses and ponds can be accommodated by bridging or locating track piers in water,
these conditions should be avoided wherever possible to mitigate environmental and affordability risks.
The site can include forested areas; however, forest crossings will require cutting of trees to create open
clearance for facilities and to mitigate wildfire risks. In such situations, arborist assessments, permit
applications and approvals from relevant authorities may be required to comply with applicable regulations,
including replacement of cut trees with new plantings.

Main building
The Main Building shall be a fit-for-purpose single or two-storey structure, shall comply with applicable law,
and be connected to the test track (for clarity: incorporating the end of tube track). The building will require
approximately 50,000 square feet of floor area to accommodate the following functional program comprised
of four functions (a general arrangement will be developed once a tentative site has been identified):
• Office space for administrative and R&D work
• Control room to monitor and operational testing
• Workshop and parts storage area (clean workshop for electronic work, machine-tooling workshop,
warehouse for parts and components)
• Visitor experience centre
Office space: includes main reception/security control for the facility, workspace to accommodate staff and
technicians for analysis of tests and results, as well as engineers conducting calculations and simulations.
This space will also include typical meeting rooms and conference spaces and host the administrative team
managing and supporting the facility.
Control room: workstations for engineers performing system testing. This room will be connected to
sensing systems along the test track and house operational servers for the facility.
Workshops: composed of three separate areas, each having a specific purpose. The machine tooling area
will allow for modifications to the chassis, requiring a heavy-duty monorail hoist system and adequate
headroom clearance to lift a prototype vehicle from track level and place it on the floor [i.e. ceiling height
anticipated at 6m]. A clean workshop will be equipped with air filters and designed for work and assembly
of electronic components. The warehouse area will accommodate spare parts and tools (rack) storage, a
truck dock and forklift charging station.
Visitor experience centre: a suite to host visitor groups offering a secure location for the public during the
tests, as well as promote the history of transportation and the history of vacuum trains.
Circulation space exits, and utility and plant service rooms shall be provided as required to support the
functional program. Impact resistant enclosures (heavy-duty reinforced masonry) will be required around
the space containing the track terminal as a precaution against unplanned impacts due to incomplete
deceleration of the prototype vehicles. Security systems shall include perimeter card access control and
CCTV surveillance at all access points.

Machinery building
The Machinery Building will be a new free-standing fit-for-purpose structure. It will comply with applicable
law, and have a floor area of approximately 1,000 square feet to contain the technical components of the

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test track: power converters, compressors, vacuum pumps, and emergency generators. It shall be located
in close proximity to the Main Building, as it contains mission-critical and sensitive equipment, though the
location and exact configuration will also need to be responsive to site constraints, utility tie-ins and service
accessibility. Circulation space exits, and utility and plant service rooms shall be provided to support the
functional program. Security systems shall include perimeter card access control and CCTV surveillance of
building access points.

Secondary building
The Secondary Building shall be a new fit-for-purpose structure, shall comply with applicable law, be
connected to a terminal of the test track (i.e. opposite end to Main Building) and have a floor area of
approximately [500] square feet. This structure will be connected to the test track, enclose the end of the
tube assembly, and be sized to accommodate the removal and re-positioning of test vehicles when
necessary to conduct a return run. Impact resistant enclosures (composed of heavy-duty reinforced
masonry) will be required around the space containing the test track terminal as a precaution against
unplanned impacts due to incomplete deceleration of the prototype vehicles.

Low-speed loop (option)


The low-speed loop is an optional extension of the test track [beyond the Secondary Building]. It shall be
composed as a fit-for-purpose structure, configured to accommodate a circular half-pipe track to allow for
testing of low-speed turns and manoeuvres by prototype vehicles to simulate motions in a future TransPod
station. The track guideway shall be composed of curved steel tube segments supported on concrete piers.
This low-speed loop will not be under vacuum, thus its upper portion shall be composed of a steel-framed
weather shelter to protect the track and vehicles from external elements. Its configuration is anticipated to
enclose a 200m diameter circular track, or similar oval shape with the smallest diameter of at least 200 m.
It shall be foreseen as a future continuation of the test track and be dependent on available land and other
functional adjacencies.

Future extension for longer test track


The above requirements represent the initial phase of the test facility’s development required to
accommodate R&D, demonstrate proof of concept of the TransPod system at full scale and operational
speeds, and test safety features of the system in a variety of modes and dynamic applications.
Opportunities to further extend the facility at a later date are considered to be an important advantage,
should the proposed site be located and configured to accommodate the addition of subsequent phases as
future extensions beyond either or both terminals, for the following reasons:
• A longer test track (phase 2, 3, etc.) will allow for further testing of the propulsion system and the
communication system of the future generations of vehicles.
• This test track must be located along the corridor Calgary - Edmonton, so it becomes possible to
integrate and repurpose portions of the track for re-use in the commercial line for future revenue
service in between the two cities.

External requirements
Access roads: The site shall have direct access from a public roadway that provides a convenient
approach to the Main Building (where the facility’s reception will be located). The facility will use this street
access as the primary access/egress control point to the site, which shall be equipped with a guardhouse
or automated barrier with CCTV and remote-control capabilities.

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The length of the site (and single point of failure risks associated with a single entry) favours the inclusion
of additional, secondary emergency access point(s) elsewhere along the perimeter of the property. These
shall be provided in alignment with suitable connections to existing roads, and be equipped with lockable
gates, signage, lighting and CCTV surveillance.
Paved parking areas will be required for employees [50]; visitors [4]; barrier free parking [as required by
code]; visiting coach buses [2]; vendor service vehicles [2]; truck dock [1]; fuel loading for emergency
generators [1]; and EMS staging [1].
On-site service roads shall be provided to allow technicians to travel between the Main Building and the
Machinery Building, the Secondary Building and alongside the tube track (entire length) for access to any
portion of the tube, as well as other critical service points (i.e. pad mount transformers) and amenities on
the property. While the security office will be set in the main building, an entrance control station will ensure
only authorized vehicles and people can access the site.
Utilities:
The electricity required for the site is broken down into three categories:
• On-going requirements: lights, computers, CCTV, etc.
• Vacuum phase: the 8 to 10 hours phase during which the vacuum pumps pump down the air from
the tube.
• Testing phase: when large amounts of power will be transmitted to the prototypes circulating in the
tube.
On-going requirements: 1.2MW will be needed to power the lights, the security and fire-fighting systems,
CCTV circuits, computers and power stations, servers, etc. The electricity needed to power these
components will be drawn from the local network, and an emergency genset will be installed on site to take
over in case of a short of supply.
Vacuum phase: The vacuum pumping system will require 3.6MW of power during 8 to 10 continuous hours
to reduce the pressure in the tube from atmospheric pressure to 100Pa (1/1000 of the atmospheric
pressure). Depending on the leakage rate of the infrastructure (which will be determined after a thorough
testing procedure on the ½ scale test track in France), the pumps will either be used during 8 to 10 hours
(if there almost is no leakage), either during the period of the tests (if the leakage rate is higher than
expected). Once the test period is done (after one or two days), and if any maintenance is needed, the tube
will be repressurized to allow cleaning and maintenance operations. We expect to run a vacuum phase
once every 2 to 3 days.
Testing phase: Due to the length of the track, we need to increase the power transmitted to the prototypes
to allow them to achieve full speed. For the full speed tests, the power required during the 35 seconds
acceleration phase is 15MW. The full speed testing will occur about once per hour. The rest of the time, the
prototypes will require less power to return to the other end of the track, or for the low-speed tests. The
vacuum pumps will not work during the tests of the pods, in order not to increase the power requirements
of the site.
Components Lights, HVAC,
Vacuum pumps Prototypes TOTAL
Phase computers, etc.
Daily operations 1.2 MW / / 1.2 MW
Vacuum phase 1.2 MW 3.6 MW / 4.8 MW
Testing phase 1.2 MW / Up to 15 MW 16.2 MW *
* Should this service level not be readily available at the proposed site, other options will be discussed
with authorities and assessed for feasibility to augment available power supply to meet peak demand
intervals. Co-generation, diesel generator farm, or flywheel electricity storage devices are possible
options for further consideration.

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Water: Potable water needs to be accessible on site. The operations will not require significant quantities
of water, so there will be no need for non-drinkable water.
Natural gas: No gas is needed on site, unless available for space heating.
Voice and high-speed data: Tie into high-speed data and mobile networks should be available on site.
Storm sewer or gravity ditch: Depending on the topography of the site, storm sewers or gravity ditches
shall be provided as required to handle run-off in compliance with applicable law. A hydrographic study
shall be undertaken as required to determine if a stormwater management pond, or similar, is required to
retain flow in conjunction with existing natural ponds and watercourses for the flow of rainwater.

5.3. Operating standards


To date, standards are yet to be created due to the novel nature of the technology. The engineering
development program is conducted with safety and standardisation as a priority.
As the regulatory framework for vacuum trains does not exist yet, TransPod proactively contacted Transport
Canada, and the European Transportation Commission, which are regulatory bodies in Canada and UE,
for their cooperation regarding certification of hyperloop or vacuum train systems. The outcome from those
initial contacts is the creation of a working group led by TransPod composed of industry experts and auditors
from the above regulatory agencies to define the regulatory framework and ultimately the list of regulatory
approvals.
Initial discussions confirmed that this new transportation system must be considered as a ground
transportation system, being the next generation of ultra-high-speed vehicles, after the steam trains, diesel
trains and high-speed trains. Between Canada and Europe, they both agree that the certification to
authorize a commercial use of a TransPod system must be granted by their own Railway department.
While regulatory bodies receive the official mandate from their administration and/or government, the initial
feedback from them regarding which regulatory framework we should try to follow is that they can certify
the TransPod system and/or a vacuum train/hyperloop system as long as we follow a rigorous process
standard like EN 50126 / IEC 61508 or similar.
They have previous experience certifying novel closed-line autonomous railway passenger transportation
systems following EN 50126 only, such as the Vectus Personal Rapid Transit done by the Swedish
Transport Agency. The ECSS standards framework has many similarities to EN 50126, and the Railway
Technology department from Sweden for example does not see an issue with TransPod following ECSS
framework as long as the reports and data can be translated to the EN 50126 framework.
Then, in the meantime, TransPod is following the ECSS framework from the European Space Agency. As
this transportation system is at the crossroad of rail and air, we chose to comply with this European
Cooperation for Space Standardization (ECSS) practice for all the systems designed by the company. This
standard is free to download and use, meaning the barrier for suppliers and collaborators to integrate into
this framework is heavily reduced. The framework is considered one of the best integrated standards related
to systems engineering according to systems engineering experts. This transportation standard is not as
polluted with predefined technical solutions and system requirements as others, meaning it integrates much
better into a new mode of transport such as the one developed by TransPod. The standard focuses on
product assurance and safety - very much in line with what we see as critical for success. The framework
is well managed by ECSS and does not feel inconsistent nor does it have local adoption issues one might
find in NASA alternatives.

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5.4. Safety, security, environmental impact
TransPod’s differentiation in the vacuum train marketplace is its prioritization of safety and its association
with relevant benchmarks from the aerospace industry as a basis for manufacturing and operational safety
standards to protect the public, system users and its employees. TransPod takes safety very seriously. It
is a priority for daily operations, as well as for the design of each component and sub-system.
All work at the FSTT shall comply with applicable law and corporate safety practices, procedures and a
site-specific safety manual and plan. A summary of the project’s initial risk analysis is provided below to
illustrate the potential level of impact anticipated for the full-scale test track in Alberta, future commercial
revenue service, infrastructure, vehicles, etc.

Safety and security on site


As an industrial employment site, the FSTT will comply with applicable laws and regulations. However, due
to the emerging nature of vacuum train technology and limited awareness of the specificities associated
with the system, TransPod is committed to working with the local authorities and stakeholders to coordinate
and review a site-specific safety plan related to the activities conducted on site, as well as a draft emergency
response plan suited to facility’s risks.
In general terms, for perimeter control a chain link fence will enclose the FSTT site. The perimeter will be
monitored 24/7 by security personnel supported by continuous CCTV surveillance. Visitors will be required
to sign-in at the main entrance and be escorted during their presence on-site by a trained TransPod
employee. Safety and security will be the responsibility of TransPod’s on-site Health, Safety and
Environment manager who will have the following responsibilities:
• Drafting and enforcing the facility’s safety manual and safety plan.
• Listing and assessing required personal protection equipment.
• Training and refresher course for teams (TransPod and subcontractors).
• Establish policies regarding selection and control of subcontractors permitted to work on site.
• Draft safety policy applicable to the testing phases (when vacuum is established; when vehicle is
in motion within the test track).
The FSTT will enable TransPod to test subsystems, vehicle designs and tube infrastructure while serving
as a unique showcase to demonstrate its innovative technology. It is therefore critical that the perception
of safety and environmental sustainability be evident for all aspects of the experience associated with the
facility. The FSTT will demonstrate TransPod’s approach and capabilities in managing safety and
environmental practices to attract future investors and passengers, by presenting a compelling case that
TransPod represents an intrinsically safe and reliable mode of transportation.
Mitigating risks to public: The FSTT facility will potentially be located adjacent to public streets, highways,
developments and other occupancies. The following measures are foreseen to mitigate risks to the public,
which shall include but not be limited to:
• Fencing/barriers along perimeter of the property to prevent intrusion on to the FSTT.
• Set-back clearance between installations and perimeter fencing, in compliance with applicable
zoning.
• Non-combustible construction assemblies used for test track and infrastructure (i.e. steel and
concrete).
• Full containment: Low-pressure environments and vehicle movements occur only within tube
interiors.

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• Steel tube strengthened to contain low pressure conditions and span between piers; provides
robust containment of dynamic movements mitigating release of materials into the environment.
• Impact-resistant enclosures provided around tube terminals to contain unanticipated movements.
• Grade separation used where track intersects and crosses roads and right of ways (if applicable).
• No flammable fuels used in Transpod vehicles; hyperloop technology is 100% electric.
• No generation of effluent, fumes or emissions into the environment, except for air release.
• Test vehicle movements managed by automated systems with redundancy; mitigating human error.
• Vehicle operates within tube, independent of weather; no water or snow spray generated.
• No excessive noise or vibration generation, as electromagnetic propulsion is quiet technology.
It is crucial that TransPod demonstrates its technology is safe and secure for installation within urban and
rural contexts, in proximity to highways, roads and buildings. The FSTT will be a showcase of how this is
accomplished while respecting the environment.
Test track construction impacts: The FSTT facility will be composed of low-rise buildings connected to
a linear test track (i.e. large diameter steel tubes). The facility’s buildings will be constructed in accordance
with applicable building codes and permits using traditional means and measures. These activities are not
expected to present negative impacts on existing developments or infrastructure beyond which are normally
encountered during installation of light industrial occupancies.
The test track will be installed on concrete piers typically used to support elevated LRT guideways. Pier
heights will vary depending on topography and any required grade separations. They will be constructed
using traditional cast-in-place concrete means and measures requiring a limited area for construction work
around its immediate vicinity, which shall be secured in compliance with requirements for temporary
hoarding, signage, traffic management and road safety measures. Placement of piers will be developed in
collaboration with authorities having jurisdiction to avoid locations that would trigger disruptions to existing
infrastructure in the first instance and minimize impacts to adjacent developments if such situations are
unavoidable.
The construction of the tube assembly will employ prefabrication and just-in-time erection for fast track tube
installation between piers to minimize disruptions. Segments will be prefabricated off-site, delivered on
flatbed trucks and lifted by crane into position. The proposed approach will be similar to ‘rapid bridge
replacement’ methodology to minimize impacts on adjacent developments and infrastructure. Planning and
scheduling will be coordinated with the authorities having jurisdiction to avoid peak usage periods wherever
possible. Catwalks and walkways will be provided over road crossings (if applicable) to mitigate future
disruptions during routine servicing of the tube assemblies, once installed.
A communication plan will be developed, in concert with authorities having jurisdiction to inform the public
and neighbouring stakeholders of any planned disruptions, to minimize unanticipated inconveniences.
Technical and Safety Standards: The FSTT facility will be designed to comply with applicable law, zoning,
and local regulations. In particular, any interface with road infrastructure will comply with Alberta
Infrastructure and Transportation standards, including but not limited to the Highway Geometric Design
Guide for horizontal and vertical clearances. In addition, process technology will comply with applicable
requirements of NFPA and Alberta Transportation guidelines.

Environmental protection
TransPod technology (vehicles circulating in a low-pressure environment) will not generate effluents or
emissions, other than air release. The FSTT will be an industrial employment occupancy, with activities
including principally engineering staff supported by workshop floor activities such as metal forming,

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machine-tooling, electronic assembling, maintaining motors and pumps, and will comply with applicable
codes and regulations. In that regard, we do not anticipate any environmental concerns related to the FSTT
facility.
In addition, we intend to embrace sustainability as a clean-tech industry with recycling programs on site
and pursue alternative energy sources by testing the suitability of solar panel mountings on the test track
tubes, to generate power for our own consumption.
A thorough impact study will be conducted prior to construction to identify environmental requirements (e.g.
EA’s) that will be required.

5.5. Risk analysis


Here are the main risks related to the full-scale test track in Alberta and the mitigation plans.

Consequence
Likelihood

Risk Level
Consequence /
Risk Mitigation / Contingency
Impact

The site will be fenced and secured by an external


Intrusion on the Risks for the
security company. Cameras will prevent such events
site by intruders, risks of
from happening. If intruders are noticed on the site, low low low
unauthorized damages on the
security will escort them back to the exit and call
people structures
proper authorities.
The site will be fenced and secured by an external
Risks for the
security company. Cameras will prevent such events
Intrusion on the animals, risks of
from happening. If an animal is noticed on the site, low low low
site by animals damages on the
security will contact the proper authorities and have
structures
such animal safely removed from the area.
Small increase of
Small leak in
the internal The pumping system will compensate for the
the tube (can be
pressure in the leakage, until the source of the leak can be identified high low low
handled by the
tube, most likely and fixed
vacuum pumps)
not noticeable.
High increase of In case of a sudden and unexpected air pressure
Major leakage the internal increase in the tube, the Tube Refill System (TRS)
(cannot be pressure in the opens the emergency valves, allowing a rapid re-
medium medium medium
handled by the tube, preventing pressurisation of the whole infrastructure in less than
vacuum pumps) from further test 15 seconds.
being conducted.
In the unlikely
case of an While shrinking itself, the tube will confine all
Implosion of the
implosion, the elements inside the infrastructure, without causing low high medium
tube
tube will shrink issues for the surroundings
itself
Unexpected Material damage, Since the testing will be done in an enclosed tube,
obstacles in depending on the there is no danger for unwanted obstacles to be in
low low low
front of the speed of the front of the vehicles, if so, the damage would be
vehicle vehicle contained in the tube.
The vehicle would The vehicles will move from one end to another end,
Impossibility to
continue its in a straight line, and safety walls will be built at each
stop the low medium low
course outside extremity, to prevent the vehicles from exiting the
vehicles
the tube. tube during the tests.
Since the tube is
made of steel and
does not contain
Standard fire safety plan will cover this risk, including
Fire on site air, the damage low low low
evacuation, fire extinction processes.
would be limited
to the other
buildings

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Since the tube is
made of steel and The track will be installed in a clear area, that cannot
does not contain be reached by a wildfire. If the buildings are
Wildfire around
air, the damage threatened by the fire, the site will be secured, then low medium low
the site
would be limited evacuated, while firefighting authorities handle the
to the other situation.
buildings
The track will not be affected by flooding, and all
Might damage the
electrical networks will be protected against flooding.
Flooding on site furniture in the low low low
The only issue would be material damage in the
office areas
office areas.
First, the test track will be built so that it could resist
Might cause the strongest wind of Alberta. Then, if and when a
Strong winds
damage to the weather alert is issued, the structure will be re- low low low
and tornados
structures pressurised, and no test will occur until clearance
has been given
The track will be built according to applicable
Might cause
regulations and according to earthquakes statistics
misalignment of
in Alberta. In case of an earthquake, the tests will be
Earthquake the tube, and low high medium
aborted, and the personnel will be evacuated until
create cracks in
the site has been assessed and declared secured by
the buildings
competent authorities.
Depending on the
size of the plane, In the event of a crash of an airplane, the tests will
damages could be aborted, and the personnel will be evacuated until
Air crash low high medium
be either very the site has been assessed and declared secured by
small, or competent authorities.
catastrophic
The site will be designed according to existing
Spill of oil or other
On-site liquid regulations, and will make sure that spills are
chemicals, low low low
pollution handled and properly managed without causing
polluting the land
harm to the environment

5.6. Budget
The total cost of building this facility is estimated to be $100 million CAD. To finance this project, TransPod
will raise capital from private investors. This capital raise is estimated to take place in 2020 amd 2021.
Operating costs will vary between $5 million and $7 million per year, including maintenance fees. All
operating expenses will be incurred by TransPod and financed by TransPod. The preliminary budget is
presented below. It will be refined during the detailed design phase occurring during the first phase of our
plan “Short-Term Plan in Alberta”.
Test Track Guideway
Land preparation and excavation $7,000,000
Service roads $2,000,000
Pier Structural Work $12,000,000
Tube supply $50,000,000
Tube erection $4,110,000
Tube's accessories and attachments $5,000,000
Main Building
Land preparation $400,000
Building $3,875,000
Equipment (machine tools, computers, etc.) $900,000
Machinery Building
Land preparation $10,000
Building $200,000
Vacuum pumps $6,840,000
Power substation $1,000,000

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Secondary Building
Land preparation $10,000
Building $200,000
Total construction costs $93,545,000

MAINTENANCE COSTS Per year


Spare parts and consumables $400,000
Labour $150,000
Tube cleaning (interior and outside protection) $50,000
Subtotal $600,000
OPEX Per year
Electricity $1,100,000
Salaries $3,600,000
Other utilities and services $150,000
Service vehicles $80,000
Computer equipment and software $75,000
Small equipment, furniture, ... $120,000
Contracting costs (security) $50,000
Subtotal $5,175,000
Costs per year $5,775,000

5.7. Socio-economic benefits

Sourcing of materials and construction


The first type of economic benefits following from the implementation of this full-scale test track will be the
activity generated during the construction period.
Overall, the project will increase the output of many industries such as non-residential building construction,
cement and concrete product manufacturing, machinery manufacturing, electrical equipment
manufacturing, machinery manufacturing, metal manufacturing, and engineering construction.
Direct impacts: The project will have direct output impacts in the economy. The output will be $59.16
million, which corresponds to a $32.90 million increase directly to the GDP. The construction and related
activities will create 152 direct jobs in Alberta.
Indirect impacts: Any increase in inputs will have an impact on other sectors of the economy through
suppliers, wholesalers, partners etc. As a result, the project is expected to generate $22.97 million CAD in
indirect GDP increase for Alberta and create 112 indirect jobs.
Induced impacts: Finally, induced impacts take into account the household consumption increase due to
higher inputs in the economy. Therefore, the construction will generate $17.31 million in induced GDP, and
108 in induced jobs in Alberta.

Economic Impacts on Alberta Direct Indirect Induced Total


Income effects (M. of CAD) 13.44 7.65 3.70 24.79
GDP Impact (M. of CAD) 32.90 22.97 17.31 73.18
Output (M. of CAD) 59.16 28.23 9.63 97.02
Employment (FTE-Years) 152.00 112.00 108.00 372.00

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250.00
Economic impacts from construction on the Job creation from construction
Alberta economy (M. of CAD) on the Alberta economy
200.00 (in FTE)
800.00
700.00
150.00
600.00
500.00
97.02
100.00 372.00
9.63 400.00
73.18
28.23 300.00 108.00
17.31
50.00 200.00 112.00
22.97
24.79
59.16 100.00
3.70
7.65
152.00
32.90
13.44 0.00
0.00
Employment (FTE-Years)
Income effects GDP Impact Output
Direct Indirect Induced Total Direct Indirect Induced Total

Operations
The full-scale test track will have a staff of 60 researchers and test engineers over a period of five years
minimum (for the initial phase leading to the commercialization phase of the TransPod system). This staff
will cover the full-scale testing of the system up to the final certification of the commercial product. Additional
staff will be hired after this phase, when TransPod will design the next generations of vehicles, and invite
other companies to use the test track for their own purposes. When the test track will be incorporated to
the commercial line between Calgary and Edmonton, the staff will be transferred to other projects in Alberta.
Direct impacts: Firstly, the project will have direct output impacts in the economy. The direct yearly output
impact will be $5.26 million CAD which corresponds to a $4.97 million increase in GDP (as most expenses
are salaries for researchers).
Indirect impacts: The project is expected to generate $1.80 million CAD in indirect output. This will
represent an increase of $1.45 million in indirect GDP increase for Alberta every year and create 18 indirect
jobs.
Induced impacts: The total induced output will be $1.70 million CAD which will grow Alberta’s GDP by
$1.66 million every year.
The following table provides an overview of the economic impacts of the operations:
Economic Impacts on Alberta Direct Indirect Induced Total
Income effects 3.16 0.70 0.64 4.50
GDP Impact 4.97 1.45 1.66 8.08
Output 5.26 1.80 1.70 8.76
Employment (FTE-Years) 69.00 18.00 24.00 111.00

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20.00 250.00
Economic impacts from operations on the Economic impacts from
18.00 opeations on the Alberta
Alberta economy (M. of CAD)
economy (in FTE)
16.00 200.00

14.00

12.00 150.00

10.00 8.76 111.00


8.08
8.00 1.70 100.00 24.00
1.66
6.00 1.80 18.00
4.50 1.45

4.00 0.64 50.00


0.70
4.97 5.26 69.00
2.00 3.16
0.00 0.00
Income effects GDP Impact Output Employment (FTE-Years)
Direct Indirect Induced Total Direct Indirect Induced Total

5.8. Implementation
The implementation of the full-scale test facility will be similar to what will be done for the half-scale version.
However, the main difference will reside in the greater scale of the project, as well as the different rules to
comply with during the construction and operations period.
The different work packages will be the following:
WP 1: Preparation and construction of the test track (2022-2023)
• M# 1.1: Site identification, final design, regulatory approval
• M# 1.2: Suppliers selected
• M# 1.3: Site preparation and service road construction completed
• M# 1.4: First section built 100% in compliance with TransPod’s specs
WP 2: Technical building construction (2022-2023)

• M# 2.1: Final design, regulatory approval


• M# 2.2: Suppliers selected
• M# 2.3: Building built 100% in compliance with TransPod’s specs
WP 3: First Prototype construction (2022-2023)
• M# 3.1: Detailed design of the prototype
• M# 3.2: Construction and assembly of the main subsystems (levitation, power transmission, etc.)
• M# 3.3: Construction and assembly of the pod shell
• M# 3.4: Integration to the test track
WP 4: First Low-Speed and high-speed tests (2023-2024)
• M# 4.1: Integration of the prototype on the test facility
• M# 4.2: First round of low-speed tests
• M# 4.2: First round of high-speed tests

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• M# 4.3: Prototype modifications and iteration phase
• M# 4.5: Final tests and second prototype development
WP 5: Second Prototype construction (2023-2024)
• M# 5.1: Revised design of the prototype
• M# 5.2: Construction and assembly of the main subsystems (levitation, power transmission, etc.)
• M# 5.3: Construction and assembly of the pod shell
• M# 5.4: Integration to the test track
WP 6: Final tests and certification (2024-2025)
• M# 6.1: Integration of the prototype on the test facility
• M# 6.2: Tests
• M# 6.3: Final prototype modifications and iteration phase
• M# 6.5: Final tests and certification of the system for commercial lines

These tests will aim to control and push the final iteration of the TransPod system to its technical limits in
order to evaluate all the failure modes of the technology. This intensive testing will allow to build the safest
system possible to be certified and later commercialised. Similarly, to the R&D project and the half-scale
test track, this project will be managed by TransPod Canada in collaboration with industrial partners and
infrastructure companies. Partners such as Hatch will be providing advisory services during the construction
and testing of the full-scale system in order to ensure compliance and prepare certification.

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5.9. Vision for the test track
To minimise the expenses required to build the first TransPod line, an attractive option is to position the
full-scale test track on the same route as a future line and refurbish the sections used for testing. This option
is feasible due to the similar diameter between the full-scale test track and the future line, as well as the
relatively advanced nature of the final tests. Indeed, this test track will be a much more advanced iteration
of the half-scale test facility that TransPod plans to open in 2020 in France, which will make it nearly identical
to the final product. This similarity will also be required to certify the full system once full-scale tests are
done.
If the Calgary-Edmonton project goes forward, the full line will be gradually built and later integrated with
the test track, which will then be transformed into a standard section of the line. However, in order to do
that, the test track will have to be located on the right alignment between Calgary and Edmonton. If no
adequate land is secured in time for the test track, the facility will have to be decommissioned once the
testing period comes to an end.

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6. Long-term: Full Line
6.1. Overview
Covering only 6% of the land area, the Edmonton – Calgary corridor is home to 76% of Alberta’s population
and is the most urbanized area of the province. In 2016, the average truck transit time between Calgary
and Edmonton took more than 27% longer than expected, a worse performance than in 2011, where lead-
times were 14% longer than expected mainly due to urban and highway congestion (according to Transport
Canada’s Travel Time Index). Furthermore, fast travel between the two cities is mostly done by air, and car.
As the province grows, it will be increasingly difficult to maintain a low congestion volume on Alberta’s
highways and manage growing airports.
Indeed, the demand for fast intercity services is growing at a very fast pace, as well as time-sensitive freight
demand. Shipping companies are already ramping-up their infrastructure investments to respond to this
surging demand, mainly fueled by the growth of e-commerce. Commuters are gradually encountering road
congestion on highways, which threatens labour market access within in the province. The increasing
demand for faster logistics and commute will have negative impacts on the economy and the environment
as long as concrete solutions are not taken to radically improve existing transportation systems.
Yet, Alberta has not invested in clean and sustainable high-speed transport, despite conducting several
studies on high-speed-rail solutions over the past 15 years. The world is changing rapidly, and Alberta will
have to properly respond to this change.
Going beyond high-speed rail, TransPod can provide a faster and safer alternative with similar construction
costs. This system will allow high-speed transport of goods and people between Alberta’s two major cities.
Weather resistant, resilient, and adaptable, the TransPod hyperloop system is perfectly suited to the
growing needs of the province of Alberta and will engender substantial economic benefits. The route
considered in Alberta starts at a central station located on the southern part of Calgary. The line then moves
northbound to the Calgary airport. From the airport, the four-tube line merges into a bidirectional dual tube
configuration and continues up north to Edmonton. Midway, the line bifurcates at Red Deer and continues
northbound to the Edmonton airport. The Edmonton airport station is connected to the hyperloop line which
then continues towards Edmonton’s central hyperloop depot. This line configuration was chosen due to its
ability to relieve congestion inside urban centres and facilitate intramodality with airports in order to increase
the flow of passengers and goods in and out of the province.
This rapid link could enable journey times from Calgary to Edmonton to only 25 to 35 minutes instead of
three to five hours needed today. A rapid link between Alberta’s main cities would allow full intermodal
connectivity from public transit, cars, buses, and planes. Operating this line will also support the growth of
the province by creating a cluster dedicated to transportation, and innovation. Alberta has the potential to
see the birth of a new industry that has the potential to bring highly skilled jobs to the province and leverage
on existing innovation capabilities and expertise Then, it will profoundly improve Alberta’s economic
competitiveness and allow substantial time savings and cost savings for small to large businesses in the
corridor. Finally, the diversion resulting from the line will drastically reduce carbon emissions and turn
Alberta into Canada’s most sustainable province.

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6.2. Background and objectives

The growth of Canada’s transportation needs


Canada is a large country with very long distances and low population density. However, the need for fast
and frequent passenger transportation keeps increasing. The most staggering example is the growth of air
travel around the world. Overall, air travel volumes are set to triple by the end of the 2030s, yet most airports
will struggle with the need for greater capacity, and governments will have to deal with the soaring CO2
emissions of air travel. Furthermore, additional pressure will be felt on existing road infrastructures that will
be facing substantial congestion issues within the next decades.
On the freight side, a study done by Canada Post has shown that 76% of Canadians are purchasing online
and that the Canadian e-commerce sector is rapidly expanding (+ 16.8% in 2016). It is expected that
Canadians will spend $39 billion CAD online by 2019, which represents approximately 9.5% of total retail
purchases in the country. While air transport is often considered to be the most expensive and the fastest,
trucks offer a flexible solution for organisations for a price slightly higher than rail. Air cargo accounts for
less than 1% of world trade tonnage, yet 35% of world trade value is carried by air. This sharp increase in
demand brings forth the need for more reliable, fast, and sustainable freight transport.

The problem of sustainable transportation


Canadians are demanding faster and more frequent, yet most of our transport modes are fossil-fuel
dependant. Despite a well-established awareness of man-made climate change for over 30 years, carbon
emissions per capita have increased by 25% from 1980 to 2013 (World Bank, 2017). Among the energy
end use sector, transport is the largest emitter of CO2. When removing the market size factor, the United
States and Canada occupy the 3rd and 4th spots of the most polluting transport systems per capita.
This lack of environmental sustainability is becoming an important strategic issue for organisations and
their supply-chains. With an increasing global demand for faster and more reliable deliveries, the
technological development of a new efficient transport system could be an opportunity to solve the paradigm
previously presented and answer to this growing demand. The development of the TransPod system has
been publicly supported by the Canadian Federal Government and several large Canadian transportation
players.

Market share
A standard TransPod hyperloop pod can load between 5 and 15 tonnes of freight or 27 to 40 passengers
and reach a maximum velocity of 1200 km/h. The TransPod system would operate between several
terminals loading up the pods and unloading the upcoming pods.
Passenger
The TransPod system will offer an alternative to cars, buses, trains and planes by providing frequent
departures (up to 1 pod every minute) and will operate like a network between cities. Previous high-speed
rail studies have concluded that there will be enough ridership for a high-speed line in the corridor by 2030,
which is exactly the timeline sought after for the implementation of a TransPod line. This new mode of
transport will capture ridership originally forecasted by the studies and generate induced trips due to the
greater travel time savings provided by the system. This new mode of transport will rarely suffer from
interruptions due to weather-related factors, contrarily to high-speed rail systems. As a result, frequency
and reliability will be ensured in the corridor and provide strong incentives to commuters to switch their
transportation habits. Previous studies by TransPod have identified that the system would generate enough
profits to recover infrastructure costs rapidly.

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Freight
Air cargo is considered to be the gold standard for express freight delivery, in addition to trucking for some
corridors, providing a cheaper and more flexible option. The TransPod hyperloop system therefore positions
itself as a hybrid between air cargo and trucking by being able to ship time-sensitive freight quickly while
minimising costs and GHG emissions. The TransPod system is expected to receive a significant diversion
from air cargo and time-sensitive freight shipped by trucks. The payload inside the TransPod system will
be composed of high-value, low weight goods. Tomorrow’s last mile delivery systems will greatly differ from
what is being used today, as autonomous vehicles are set to deliver 80% of parcels in the future. TransPod
is aware that cutting travel time between cities without designing a fully integrated supply chain is worthless.
For this reason, special care should be taken when considering future trends of last mile deliveries and
automated integration inside warehouses. To preserve the time savings of the system, each pod will be
automatically unloaded, and the payload will be automatically rerouted to awaiting driverless trucks for local
deliveries and drones for immediate surrounding deliveries.
Multiple interviews have been conducted with DHL Canada’s CEO, UPS Canada’s VP of Strategic
Partnership and VP of Engineering, as well as the president of Sameday Worldwide. The three companies
interviewed considered hyperloop an interesting alternative to their existing air and road fleet.

6.3. Budget

Budget overview
The detailed budget of the line will be determined during the feasibility study and refined after the detailed
design and procurement phases. However, we have drafted an initial estimation based on our metrics.
TransPod’s infrastructure cost per kilometre was estimated to reach $28.89 million CAD. As a comparison,
the cost per km of 24 of the world’s leading HSR systems varies between 4.7 million and 39.5 million EUR
(2005) with a mean value of 18 million EUR (2005), corresponding to 35 million CAD (2017). These costs
exclude rolling stock, planning, and land costs. Rolling stock costs for TransPod hyperloop systems are
relatively small compared to the total infrastructure costs, similarly to the cost ratio observed on current
high-speed rail systems. The cost of acquisition of a single pod (following TransPod’s design) was
estimated at $10M CAD.
The TransPod technology positions itself as being in the global cost range of existing high-speed rail
systems, with a significant speed increase, thus a greater efficiency. Indeed, infrastructure costs may vary
given the location chosen for the project. The main advantage of this infrastructure is its ability to be adapted
depending on the terrain profile and property rights of the proposed route. For instance, building elevated
on piers does not cut fields or properties in half contrary to existing rail systems. Furthermore, and thanks
to the possibility to modify the height of each pier, the horizontal tube alignment required is much less
demanding than rail alignment needed today for high-speed rail, often requiring additional civil works along
the track. The TransPod infrastructure can be built elevated, underground or as a shallow trench
(particularly useful to minimise cost on flat terrain).
PBS and Description Object Type REF Cost/km
2 A-01 Pier Type A (38U / Km) B 1 $3,011,000
2 A-02 Galvanized Metal Ladder B 1 $262,000
2 A-03 Galvanized Catwalk B 1 $1,344,000
2 A-04 Tube - Diameter 4m; 1000m E 1 $11,063,000
2 A-05 Solar Panels E 1 $2,310,000
2 A-06 Emergency Exits (2U / 1km) B 1 $1,504,000
2 A-07 Service Road R 1 $1,660,000

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2 A-08 Power Substations (1U / 5km) E 2 $392,000
2 A-09 Service Compound (4U / 1km) E 3 $1,386,000
2 A-10 Indirect Costs C 1 $2,293,000
Total Without contingency C 1 $25,225,000
Contingency costs $3,670,000
Total cost per km $28,895,000

Cost for the


Stations
facilities
Calgary Central Station 4,000,000
Calgary Airport Terminal 1,000,000
Edmonton Central Station 4,000,000
Edmonton Airport Terminal 1,000,000
Red Deer Central Station 1,000,000
Total Stations 11,000,000

Route Design Total cost


Calgary Downtown to Airport (quadridirectional) 1,733,700,000
Calgary Airport to Red Deer (bidirectional) 3,929,720,000
Red Deer to Edmonton Airport (bidirectional) 3,698,560,000
Edmonton Airport to downtown (quadridirectional) 1,155,800,000
Total Route cost 10,517,780,000

Grand Total 10,528,780,000


Adjusted Cost/km (quadridirectional &
35,213,311
Bidirectional)
The cost reduction provided by TransPod’s proprietary systems positions this new mode of transportation
competitively within the transportation industry, making it possible to redefine the way people live and work.

Funding of the project


The construction will most likely follow the structure of Public-Private Partnerships (PPP). These structures
include the main actors of the creation of a transportation infrastructure:

• Finance: Major insurance companies, pension funds, banks, etc. have the capability to finance
such project. Some of them have already shown an interest.
• Build: Construction companies will be involved in the partnership to oversee and build the line.
• Rolling stock manufacturer: In this situation, TransPod will provide the technology and the
specifications related to the construction of the line.
• Government: The implication of the Government in the PPP guarantees the business model and
the cost of the ticket for the final user.
According to the Residential and Civil Construction Alliance of Alberta, governments have systematically
underinvested in infrastructure, and continued underinvestment in infrastructure puts an average 1.1%
annual GDP growth at risk. Given the record government deficits in much of Canada, due in part to the one-
time stimulus investment, governments and public owners will more than ever before be eager to find ways
to obtain greatest value for money. Because of downsizing and outsourcing many conclude that there is
insufficient capacity and expertise within the public sector to deliver the volume of infrastructure that is
needed. The private sector has proven itself willing and very capable of providing the necessary expertise
and resources. PPPs are one vehicle through which the private sector can deliver its expertise.

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Most of the large Canadian life insurance companies, including Manulife, Canada Life and Sun Life, are
active as debt investors in the PPP space. The Canadian pension funds also participate, primarily as equity
investors; for example, Borealis Infrastructure, the direct infrastructure investment arm of OMERS (one of
Canada’s largest pension funds with approximately $72 billion in net assets) has invested equity in several
PPP transactions in Alberta. It was also recently announced that La Caisse de dépôt et placement du
Québec (CDPQ), which manages public pension plans in the province of Québec and has almost $226
billion in net assets, will be given new powers to control and develop major infrastructure in the province.
Moreover, according to the results from a national public opinion survey conducted by Nanos Research on
the Canadian public opinion concerning infrastructure and public-private partnerships, seventy-one percent
of Canadians (the highest yet) support governments using PPPs to build infrastructure across the country.
Almost nine in ten Canadians agree or somewhat agree that infrastructure investments will boost economic
growth in Canada. The most promising approach to getting a TransPod / hyperloop line built is to form
Public-Private Partnerships and to submit offers to tenders regarding the construction of ground
transportation corridors.

6.4. Socio-economic benefits


Similarly to major infrastructure projects such as high-speed rail lines, building a rapid freight corridor
between Calgary and Edmonton will provide substantial socioeconomic benefits to Alberta and Canada as
a whole:
Direct impacts: The construction of a full line will generate $6.19 billion CAD of direct economic output for
Alberta, $3.93 billion in direct GDP, and create 14,563 direct jobs.
Indirect impacts: The construction will generate $3.59 billion CAD in indirect output, and $2.90 billion in
indirect GDP. Furthermore, 12,450 indirect jobs will be created.
Induced impacts: Finally, $1.12 billion CAD in induced output will be generated, $0.83 billion in induced
GDP, and 11,060 induced jobs.

Economic Impacts on Alberta Direct Indirect Induced Total


Income effects (in B. of CAD) 1.26 0.83 0.39 2.48
GDP Impact (in B. of CAD) 3.93 2.90 1.94 8.77
Output (in B. of CAD) 6.19 3.59 1.12 10.89
Employment (FTE-Years) 14.53 12.45 11.06 38.05

15.00
Economic impacts from construction on Job creation from construction on
13.00 the Alberta economy (B. of CAD) the Alberta economy
10.89
11.00 (in 000s of FTE)
1.12 35.00
8.77 11.06
9.00
1.94 3.59 25.00
7.00 12.45
2.90 15.00
5.00
2.48 14.53
3.00 6.19 5.00
0.39 3.93
0.83
1.00 1.26 -5.00 Employment (FTE-Years)

-1.00 Income effects GDP Impact Output


Direct Indirect Induced Total
Direct Indirect Induced Total

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Economic impacts during operations

Revenues and labour market access


A public-private partnership in charge of operating the Calgary-
Edmonton TransPod line would earn a significant profit. Policy
makers could thus see substantial public revenues from developing
this system coming from either direct sale in the case of a complete
or partial public ownership, otherwise getting revenues through
private operator’s royalties. This high profitability could very well
strengthen the business case for undertaking the development of
such systems for both public and private organisations as the initial
investment required for the infrastructure costs could be repaid over
$1 B. of yearly a period of fewer than 30 years. By allowing people from both cities
operating revenues to commute in and out in a record time, labour market access will
become substantially easier for the province, meaning that
companies will choose to locate in either Red Deer, Edmonton, or
Calgary, and highly specialised professions will have access to a
wide variety of industries. This will substantially grow the revenue of
the private sector and create clusters close to hyperloop stations,
similar to what we observe with subway systems.

Travel time savings


The second largest benefit will be the travel time savings associated
with reduced lead times, modal shift, and higher transportation
efficiency across all modes of transport. Customers’ welfare could
increase substantially due to the ability to receive their time-sensitive
orders faster, and people would be able to move between one
metropolitan area to the other in 30 mins. Overall, the line will allow
shipping companies to save more than 22,000 hours of freight travel
time every year and reduce congestion on the road. These time
savings are equivalent to more than $1.5 billion CAD saved every
year. Not only will this allow a more flexible supply chain but will also
Up to $1.5 B. of reduce inventory costs for a wide variety of industries. The time
savings impacts will increase the country’s competitiveness by
travel time savings providing businesses with more flexibility, enhance supply chains
per year and increase mobility. Wider economic impacts following the
changes in GDP and agglomeration economies should be evaluated
in the future to provide a broader view of the benefits of integrating
new modes of transport.

* Numbers may vary depending on the


reference year

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Safety benefits
A hyperloop line between Calgary and Edmonton would have an
important impact on road safety. Due to a substantial traffic
reduction, hyperloop could save lives and damages on a yearly
basis by reducing accidents from 240 to 300 per year. By putting a
monetary value for each fatality, serious accidents and property
damages, and by contrasting it to the reduced number of accidents,
the total monetary value avoiding these accidents could reach $40
240 to 300
million CAD per year. This new mode of transport is enclosed and
accidents prevented immune to weather effects, therefore providing additional safety
per year compared to traditional road transport.

Environmental benefits
An important benefit for society will be the reduced CO2 emissions
engendered by a modal shift from airplanes and road vehicles to the
hyperloop system. Overall, a TransPod line between Calgary and
Edmonton could remove 200,000 to 385,000 tonnes of CO2 every
year. Not only will this CO2 emissions reduction help Alberta reach
Reducing CO2 its carbon targets but will also help in reducing the spread of other
emissions by 200,000 pollutants such as methane or nitrous oxide, that can harm human
health and induce global warming.
to 385,000 tonnes
every year
Multiplier effect on Alberta’s industries
Because of its intensive use of infrastructures, the transport sector
is an important component of the economy and a common tool used
for development. This is even more so in a global economy where
economic opportunities have been increasingly related to the
mobility of people, goods and information. A relation between the
quantity and quality of transport infrastructure and the level of
economic development is apparent. High-density transport
infrastructure and highly connected networks are commonly
associated with high levels of development. When transport systems
are efficient, they provide economic and social opportunities and
benefits that result in positive multipliers effects such as better
Productivity gains accessibility to markets, employment and additional investments.
When transport systems are deficient in terms of capacity or
across industries reliability, they can have an economic cost such as reduced or
missed opportunities and lower quality of life. A high-speed freight
line between Calgary, Red Deer, and Edmonton has the potential to
generate a strong multiplier effect on the province’s many industries.
This multiplier effect will create indirect and induced jobs not only
amongst users of the freight line, but also in side-sectors. Overall,
the quality of life of Albertans will be substantially enhanced.
* Numbers may vary depending on the
reference year

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6.5. Implementation
The activities listed below summarise the main steps to follow to build and then operate the line. These are
overviews of each step. Much detailed activities will be drafted once the project moves forward.

Feasibility studies
Feasibility studies, or assessment studies, will confirm the need for the construction of a hyperloop corridor.
Our analysts will work with external and independent partners (such as renowned consulting firms) to
conduct such studies. The objective is to present an overview of the infrastructure in a dedicated country,
then, to identify the needs for transportation systems and to assess the benefits that a hyperloop line would
bring to the country. Then, the feasibility studies will stress out the economic and environmental benefits
for the region, and finally the studies will reveal the cost of the infrastructure and the scope of work. Of
course, if the study reveals that the project is not viable, we will focus on other more profitable corridors.

Identifying and developing relationship with the key people


Major high-speed rail projects (and generally speaking infrastructure projects) are championed by the
governments of each country. Either the Ministry of Transportation, Infrastructure Offices, or the Ministry of
Regional Planning establish the guidelines for the next 20 to 50 years. Their plans can be made upon
internal requests or follow an external recommendation. It is accepted that there is a very large
“infrastructure deficit” in Canada, said to be brought about by factors such as deferred maintenance and
delayed replacement of assets that have reached the end of their service life. Yet significant, continued
investment will be essential.
Before, during, and after the realization of the feasibility study, we will identify the key people who are
involved in the process of creating new transportation corridors, among governments, transportation
companies, banks, private funds, potential equity partners, construction companies. The objective is not
only to be connected to the right people, but also to be able to leverage our expertise during the process.
Our role will be to provide guidance to the contracting authority in order to favor innovative and sustainable
ultra-high-speed transportation solution rather than slow, inefficient or fossil-fuel dependent options.

Creation of the consortium


TransPod will gather the appropriate partners in order to constitute a consortium, or a Special Purpose
Vehicle (SPV) which will be in charge of responding to the Request for Information issued by the
Government or the local authorities - once the transportation project has been approved by the local
transportation plan. The SPV will regroup at least a construction and engineering company, the operator
and maintenance company, a lending operator, and shareholders who will provide cash in exchange of
equity.

Procurement process, commercial and financial close


Once TransPod has created a solid and strong SPV, we will respond to the steps of the tenders (RFQ, then
RFP) by offering the best compliant solution in order to be selected and to move forward regarding the
realization of the project.

6.6. Timeline
Although it is very preliminary to present a detailed timeline for this project, we have estimated that the
construction could be achieved in a five years’ timeframe.

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7. Appendix A: Definitions
Input-output modelling: Input-output models (I-O models) are used to simulate the economic impact of
an expenditure on a given basket of goods and services or the output of one of several industries. Input-
output analysis uses data on the flow of goods and services among various sectors of the economy, and
attempts to model how an expenditure, increase in demand, or investment ripples through a region’s
economy. This is done by mapping the production of products and service by each industry, and identifying
the intermediate inputs used in the production of each final product or service used by consumers, sold as
an export, or purchased by government. The model can then aggregate all of the employment and value-
added impacts generated in the supply chain as commodities are produced. I-O models also consider the
role of imports, which tie the supply chain to the global economy. This data is combined into a single model
of the economy which can be solved to determine how much additional production is generated by a change
in the demand for one or more commodities or by a change in the output of an industry.
Direct Impacts: Direct economic impacts represent the economic value added directly associated with
capital investments and associated operations. For example, they include the employment and income of
employees and contractors directly involved in a project, as well as the associated product, production and
income taxes paid.
Indirect Impacts: Indirect economic impacts represent the economic value added resulting from the
demand for materials and services that the project generate in supplier industries. They represent, for
example, economic activity generated in the manufacturing, wholesale trade, transportation and
professional service sector as a result of demand for materials and services generated by a project.
Induced Impacts: Induced economic impacts are general income effects associated with the spending of
salaries and wages earned as a result of the project on consumption. An example of an induced economic
impact are workers engaged in a project purchasing goods and services (at a household level) with their
earnings.
Output: The value of goods and services produced by establishments (e.g. firms), excluding “intermediate”
goods and services consumed by the same establishment during the production process (e.g. electricity
produced for own consumption). Output includes goods and services sold in the market place as well as
goods added to inventory.
Gross Domestic Product (GDP): GDP is the “total unduplicated value of goods and services produced in
the economic territory of a country or region during a given period”. GDP includes household income from
current productive activities (wages, salaries and unincorporated business income) as well as profits and
other income earned by corporations. In the context of our study, GDP serves as a measure of the total
economic value-added resulting from the capital investments and associated operations of a project.
Employment: This study measures the employment impact in terms of full time equivalent (FTE) positions
for ongoing employment (i.e. employment impact associated with annual expenditures). This approach is
consistent with standard statistical terminology.
Labour Income: Labour income represents the total earnings of employees (including employees of
suppliers to the projects), consisting of wages and salaries as well as supplementary labour income (such
as employer’s contributions to pension funds, employee welfare funds, the Unemployment Insurance Fund
and Workers Compensation Fund).

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8. Appendix B: Calgary - Edmonton
high-speed Rail studies and map
LIST OF ALL ALBERTA HIGH-SPEED RAIL STUDIES
1. 1985-HSR Prospects-in-the-Calgary-Edmonton-Corridor-1985-03 AB Government
https://drive.google.com/file/d/1CN5pgl3axBoV_SAPYO8rBLwyBya02W_T/view?usp=sharing

2. 2004 - Calgary/ Edmonton HSR - The Van Horne Institute


https://drive.google.com/file/d/0B6QvXHw7cJQ2Ul9CTXlUZ3hwRXc/view?usp=sharing

3. 2008 Economic Benefits and Market Assessment for Development of HSR Service Calgary/Edmonton
Corridor (3 documents)
https://drive.google.com/drive/folders/1i15Lu75euM01_if_JD9ts4wqUkmESdLx?usp=sharing%20Inc

4. 2010 Study of high-speed Rail Impacts on Rural Alberta – CPCS


https://drive.google.com/file/d/0B6QvXHw7cJQ2VEg5OFozTWlmek0/view?usp=sharing

5. 2014 The Feasibility of Establishing a HSR Transit System in Alberta - Standing Committee on
Alberta's Economic Future
https://drive.google.com/file/d/0B6QvXHw7cJQ2dzlfcjd5MGxoSGc/view?usp=sharing
2010 Edmonton - Calgary high-speed Rail Map - Tems Inc.

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9. Appendix C: Notice of Motion,
NM2017-33 - 2017 August 30

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10. Appendix D: Transportation
Report to SPC on Transportation
and Transit - TT2018-1054 - 2018
October 04
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Hyperloop Development and Testing in Calgary

EXECUTIVE SUMMARY
Hyperloop is a proposed mode of freight and passenger transportation that uses a vacuum tube
system to propel pods at high speeds (over 1,000 km/h) over long distances. While the idea of
using a vacuum tube to transport people and goods has been around for over a century, hyperloop
has recently been made popular by Tesla and SpaceX founder Elon Musk, when he announced
in 2012 that the hyperloop would be the “fifth mode of transport” (the others being: roadway, water,
air and rail). Several hyperloop companies have emerged since Musk’s 2012 announcement
including Virgin Hyperloop One, Hyperloop Transportation Technologies (HTT), DGWHyperloop,
and TransPod. There are no functioning hyperloops in service, and only two test tracks in the
world – the Virgin Hyperloop One 500 m test track in the Nevada Desert and the SpaceX subscale
model in Hawthorne, California.
In 2017, a hyperloop company approached The City of Calgary looking to establish a research
office, and construct a 10 km test track in Alberta. The hyperloop company investigated several
locations for tests tracks outside of Calgary city limits. Administration supports the development
of a privately funded test track outside the city boundary due to the economic and research
benefits that could arise from its development. However, due to the hyperloop technology still
being in a conceptual/developmental stage, regional plans should not be changed to account for
it, and the development of a test track within city boundaries is not recommended.
The decision to allow for the construction and operation of a hyperloop test track falls outside of
The City of Calgary’s jurisdiction. The Government of Alberta is in ongoing discussions with the
hyperloop company regarding the company’s interest in moving forward with a safe and suitable
hyperloop test track location in the province.
If a hyperloop test track does move forward near Calgary, The City will be able to provide
transportation data, staff expertise and can work to understand how The City can assist in its
success. In reviewing the Hyperloop concept administration consulted with Calgary Economic
Development, Innovate Calgary, University of Calgary, TransPod, Delta Loop, State of Nevada,
City of Edmonton and the Provincial and Federal Governments.

ADMINISTRATION RECOMMENDATION:
That the SPC on Transportation and Transit recommend that Council receive this report for
information.

PREVIOUS COUNCIL DIRECTION / POLICY


On 2017 September 11, Council unanimously approved Notice of Motion, NM2017-33, with the
following direction:
ADOPT, Moved by Councillor Carra, Seconded by Councillor Pootmans, that Councillor Carra’s
Motion, NM2017-33 be adopted, after amendment, as follows:
NOW THEREFORE BE IT RESOLVED that Administration, in collaboration with Calgary
Economic Development, Innovate Calgary and post secondary institutions and within existing
budgets, support the development of a research centre and test track as the first steps in
determining the viability of this technology and report on progress to the SPC on Transportation
and Transit no later than Q2 2018

Approval(s): Thompson, Michael concurs with this report. Author: Sedor, Andrew

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Hyperloop Development and Testing in Calgary

On 2018 June 25, Council approved a deferral report to defer the Hyperloop Development and
Testing in Calgary report to no later than the 2018 October meeting of the SPC on Transportation
and Transit.

BACKGROUND
Hyperloop
Hyperloop is a proposed mode of freight and passenger transportation that uses a vacuum tube
system to propel pods at high speeds (over 1,000 km/h) over long distances. The hyperloop
technology serves as a potential future alternative to high-speed rail (HSR). While the idea of
using a vacuum tube to transport people and goods has been around for over a century, hyperloop
has recently been made popular by Tesla and SpaceX founder Elon Musk, when he announced
in 2012 that the hyperloop would be the “fifth mode of transport” (the others being: roadway, water,
air and rail). Several hyperloop companies have emerged since Musk’s 2012 announcement
including Virgin Hyperloop One, Hyperloop Transportation Technologies (HTT), DGWHyperloop,
and TransPod.
Hyperloop test tracks
There are no operating hyperloops in existence and currently only two test tracks in the world:
1. Virgin Hyperloop One’s 500 m test track is in the desert 30 minutes north of Las Vegas.
In conversations with the State of Nevada, this location was deemed acceptable as it did
not endanger the public or property; in case of an accident, only the surrounding desert
would be impacted. The Nevada government was supportive of the test track largely due
to the private capital investment of over $120 million USD and the creation of 100 new
jobs.

2. A 1.6 km subscale model (a six-foot outer diameter) has been constructed adjacent to
SpaceX’s headquarters in Hawthorne, California. Since 2015, SpaceX has hosted a
university hyperloop pod competition, which challenges university teams to design and
build the best / fastest transport pod and test it at the test track.

Proposed Hyperloop projects


1. In April 2018, HTT started construction of a 320 m test track near its research and
development centre in Toulouse, France. It will be the first test track of Hyperloop in
Europe. HTT are looking to build a commercial hyperloop in Abu Dhabi for Expo 2020.
2. In February 2018, Virgin Hyperloop One announced it is proposing building a 700 km
hyperloop in India between Prune and Mumbai, which would connect around 26 million
people. Virgin is looking to construct a 10 km test track in the area, prior to starting the full
line. Virgin Hyperloop One also reached an agreement in August 2018 with Spanish state-
owned rail infrastructure company, Adif, to build a $500 million research centre in Spain.
3. TransPod has secured 50 million euros of funding and has put in an application to build a
3 km, 2 m diameter test track near Limoges, France.

Approval(s): Thompson, Michael concurs with this report. Author: Sedor, Andrew

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Hyperloop Development and Testing in Calgary

INVESTIGATION: ALTERNATIVES AND ANALYSIS


Role of the Municipal Government
The City of Calgary has a limited role when it comes to the development of hyperloop technology
for use over long distances. The Government of Alberta has jurisdiction over the use of any
provincial highway right-of-way as well as intra-provincial short-line railway standards, while the
Government of Canada has jurisdiction over federal railways and related standards.
Land
It is recommended that if a hyperloop test track is built, it is constructed in an isolated area, much
like the Nevada test track.
Funding
The City will be able to provide transportation data and staff expertise. The decision to allow for
the construction and operation of a hyperloop test track outside of Calgary falls outside of The
City of Calgary’s jurisdiction. The Government of Alberta and/or the Government of Canada would
be largely responsible for hyperloop or other high speed intercity transit technologies.

Stakeholder Engagement, Research and Communication


Administration consulted with Calgary Economic Development, Innovate Calgary, University of
Calgary, TransPod, Delta Loop, State of Nevada, City of Edmonton and the Provincial and
Federal Governments. The stakeholder engagement, research and communication results are
attached to this report.

Strategic Alignment
The only City document that references the hyperloop technology is the Future of Transportation
report. The Calgary Transportation Plan looks at high speed rail connections to Edmonton.
Future of Transportation – The hyperloop technology is identified as a “medium impact”
technology that is in the “concept / prototype stage”. It was recommended that regional plans
should not be modified for the technology, and The City should monitor developments with the
technology.

Social, Environmental, Economic (External)

Hyperloop test tracks and research centres could attract specialized engineers and researchers
in addition to the direct and indirect construction jobs.

Once proven, hyperloop technologies may provide significant travel time savings for people and
businesses and could reduce CO2 emissions.

Financial Capacity
Current and Future Operating Budget:
The information contained in this report contains no decisions that would impact operational
budgets.

Approval(s): Thompson, Michael concurs with this report. Author: Sedor, Andrew

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Current and Future Capital Budget:


The information contained in this report contains no decisions that would impact capital budgets.

Risk Assessment
It was determined that a hyperloop test track should be outside city limits. Construction of a test
track away from built up areas is consistent to what is occurring globally with other hyperloop test
tracks.

REASON(S) FOR RECOMMENDATION(S):


The development of a privately funded test track outside the city boundary is supported by The
City due to the economic and research benefits that could arise from its development. However,
due to the hyperloop technology still being in a conceptual/developmental stage, regional plans
should not be changed to account for it, and the development of a test track adjacent to a
roadway or built up area is not recommended.

ATTACHMENT(S)
1. Hyperloop Stakeholder Engagement

Approval(s): Thompson, Michael concurs with this report. Author: Sedor, Andrew

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11. Appendix E:
Cost-Benefit Analysis
In addition to the technological development undertaken by TransPod, several studies have been
conducted to understand the associated socioeconomic costs and benefits of evacuated tube
transportation. As the first realistic application will likely be freight (due to the easier certification process),
research was conducted in collaboration with the departments of Supply Chain Management and
Economics of Copenhagen Business School and Karlsruhe Institute of Technology to develop a greater
understanding of the economic impacts of the project. The following section summarises the literature
published to date on hyperloop and builds a framework of cost-benefit analysis to better understand
hyperloop economics and assess its feasibility.

11.1. The literature


Despite an increasing number of technical studies being released, very few authors focus on the economic
implications of hyperloop. In order to fill this gap, NASA ordered an Hyperloop Commercial Feasibility
Analysis report to be done based on the basic information provided by Musk’s alpha document. The report
shows a high-level overview of the main concerns associated with the economic feasibility of the system.
Despite not diving into details, the study provides several insights with regards to the potential cargo market
share that hyperloop could draw. The study highlighted the necessity to fully integrate an efficient last mile
system within hyperloop corridors to become competitive with trucking. Second, air cargo would likely draw
a lot of the market share due to its high value-low weight ratio. In the United States, air travel accounts for
1-2 % of all freight ton-miles, but 40 % of freight value. Moving forward to freight transport, Werner et al.
(2016) evaluated the shared value of the impacts of a freight hyperloop in northern Germany, according to
the technical specifications presented by Musk (2013). The authors use the definition of shared value
according to Porter & Kramer (2012) which considers it as being “the integration of social welfare into
economic value within a business model”. Three characteristics are identified as creating value: 1-
Reconceiving products and markets, which addresses the shared value of society and businesses, 2-
Redefining productivity in the value chain which reduces externalities associated with several industries, 3-
Local cluster development, improving local businesses and economies. In order to measure the shared
value, the study analysed the following dimensions: Travel Speed, Operating Costs, Noise Pollution, Air
Pollution, Carbon Footprint, Separation effect and Property Efficiency, and Maintenance Costs. Finally,
hyperloop could potentially compete with water shipping companies for port-to-port shipping due to the
reduced cost of land acquisition by putting the tubes under water (Taylor, Hyde, & Barr, 2016).
Other research was previously done in related high-speed freight projects and concepts such as capsule
pipelines, freight MAGLEV, and vactrains. The socioeconomic benefits identified by most research papers
always converge towards the identification of a significant CO2 emissions reduction, accidents reduction,
social welfare increase, local cluster development, increased GDP per capita, and increased freight
reliability. The major negative impacts identified in these studies were related to high infrastructure costs
(which would hinder political will to move forward with the project), long commercialisation time, the
necessity to make the system grade separated, and a strong substitution effect for both air freight and
express trucking services engendering job losses. (Egbunike & Potter, 2011; Janić, 2014; Kidd & Stumm,
2008; Powell & Danby, 2003).
Shore-to-shore hyperloop has been further studied by KPMG (2016) in a report made in association with
Rambøll, Setterwalls, FS Links, and Virgin Hyperloop One. This study claimed that a passenger hyperloop

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would greatly benefit the super-region Stockholm-Helsinki by replacing the current ferry boat operations
and transport passengers underwater in 28 min instead of 3h30 by plane or 17h30 by boat. The study
estimated that the project could bring substantial economic benefit to organisations and society in the region
and based its assumptions on the benefits associated with the construction of the Øresund bridge between
Copenhagen and Malmö. Another study has been published by the firm Aecom for the Colorado hyperloop
project. This privately funded study highlighted that an hyperloop could bring USD $1.0 B per year of gross
revenues in 2020, a Value of Time Savings (VTS) of USD $470 M. in 2020, CO2 emissions savings of USD
$4.1 in 2020 (with a CO2 monetary value of USD $63 per metric tonne). Despite a flat rural terrain, the total
project cost was of USD $3.0 Billion for the 64km phase 1 project and USD $24 Billion for the entire project.
While it is clear that a myriad of socioeconomic benefits may arise from the development of ultra-high-
speed transportation projects, existing estimates are measured according to a lot of different methodologies
that might not be suitable for decision making in transportation. For instance, the VTS per tonne km is highly
heterogeneous depending on the types of goods shipped and the geographical location. Similarly, carbon
pricing diverges from government to government, which ultimately affects the value of a project.

11.2. Market readiness


Over the past years, TransPod surveyed executives from shipping companies in order to understand their
current issues with regards to freight transportation timeliness and congestion of current corridors:

“The demand for express parcels is growing exponentially in Canada. We are


currently forced to rely on trucks, trains and air cargo to keep shipping volumes
flowing and satisfy our customers”
- Canada Post

“Hyperloop vehicles could allow a more frequent freight distribution and thus the
possibility to close one distribution centre in one of the two cities and double the
capacity of one of the current distribution centres to save on costs and replace cargo
planes”
- DHL Canada

“Fast deliveries will be a growing trend with the fast-paced growth of e-


commerce/online shopping”
- Sameday Worldwide

“For us, hyperloop could be interesting for same-day shipping which is what a truck
cannot do today… or with a really high cost as it becomes a personalised service.
Today, cut-off times (shipping deadlines) are around 6pm as we need to sort parcels
for night shipping. If we reduce the transit time, cut-offs can be pushed back to 10pm
and parcels would still arrive in the morning”
- UPS Canada

The companies interviewed considered hyperloop as an interesting alternative to their existing air and road
fleet in Canada. Congestion was considered to be one of the main cost drivers for the companies in terms
of delayed deliveries, as well as weather hazards. Allowing a faster transfer of goods from one city to the

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other could allow a greater efficiency and reduce costs for these businesses, especially as the demand for
time-sensitive shipments is growing exponentially. Besides, the companies acknowledged that an
hyperloop system could decrease their warehousing costs due to the closure of some facilities and faster
delivery.

11.3. Cost Benefit Analysis (CBA) - Calgary-Edmonton Corridor

Methodology
Cost-Benefit Analysis (CBA) is an analytical tool used by public organisations for judging impacts of an
investment decision by assessing its costs and benefits to evaluate the welfare change attributable to it.
(European Commission, 2014). CBA are considered as a reference for transport investment appraisal
(Janic, 2003). Most modern academic textbooks would summarise the process of CBA in the following
manner: 1. Specify the set of alternative projects; 2. Decide whose benefits and costs count; 3. Identify the
impact categories, catalogue them, and select measurement indicators; 4. Predict the impacts quantitatively
over the life of the project; 5. Monetise (dollar value) all impacts; 6. Discount benefits and costs to obtain
present values; 7. Compute the net present value of each alternative; 8. Perform sensitivity analysis; 9.
Make a recommendation. (Boardman, Greenberg, Vining, & Weimer, 2010). Although this process allows
to build up relevant estimates, most CBA includes risk mitigation tools such as sensitivity analysis and
break-even calculations to ensure a fair assessment of investment projects (Makowsky & Wagner, 2009).
This CBA was performed according to the methodology shown by Boardman et al. (2010), the reference
textbook used for the CBA course offered at Harvard University6. Additional methods were taken from more
advanced analyses such as Eco Train (2011) and European Commission (2014). Whilst the validity of this
methodology can be challenged, the analysis yielded coherent results aligned with the methods despite the
limited time and data access.
This CBA relies on secondary data acquired from Statistics Canada, and the Alberta Ministry of
Transportation. Additional data was collected from interviews, white papers and research papers on
transportation economics. The data collected was compiled into several excel files in order to provide a
basis for the analysis. Prior to undertaking the CBA, the different impact categories (see literature review)
were determined:
Table 1: Hyperloop Cost-Benefit impact categories

Costs Benefits
Infrastructure Costs Revenues
O/M costs Environmental Benefits
Costs on the trucking industry Travel Time Savings
Safety Benefits
Each measurement was realised with the traffic data from the Canadian corridor studied. Infrastructure
costs were determined following TransPod’s framework developed with its partners which takes into
account quotes from TransPod’s suppliers. Operating costs were forecasted using TransPod’s system
design and the cost structure of Canadian class 1 freight railways. The substitution costs induced on the
trucking industry were forecasted with the data provided by Statistics Canada and consultation with
transportation experts . Revenues of the systems were determined with the expected capacity based on
the system’s specifications, the industry’s standard pricing by tonnes/km, and the quantity of time-sensitive
goods diverted from trucking. As this CBA’s scope was to provide a simplified overview of the impacts of

6
See course syllabus: https://www.hks.harvard.edu/syllabus/API-139M.pdf

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hyperloop systems, complex demand modelling was not undertaken in this analysis. Environmental benefits
were forecasted with the reduction of atmospheric emissions due to the removal of a portion of the truck
traffic and the partial reduction of congestion in the greater Calgary and Edmonton areas. The valuation
was done with the Canadian government’s carbon pricing scheme taken from eco train and grown over
time due to the increased carbon valuation of society. Time savings were forecasted with the reduction of
congestion and increased speed computed with the VTS of the shipping industry found in the literature.
Finally, safety benefits were forecasted with the number of crashes involving trucks and the dollar value of
crashes and injuries provided by Alberta’s Ministry of Transportation.
Following the NTCF guidelines, the basic social discount rate of the CBA was set to 10%. Moreover, it has
been decided to test the sensitivity of the CBA with a discount rate of 5% and 7%. As transport projects,
usually payback their investment over a long period of time, the time frame of this analysis was set to 30
years (starting in 2025), which aligns with the NTCF guidelines as well as generic CBA guidelines used for
project appraisal (European Commission, 2014). Each impact category was quantified and monetarized in
order to calculate the present value for each relevant year. The final Net Present Value (NPV) was
determined by:
𝐵𝑒𝑛𝑒𝑓𝑖𝑡𝑠 𝐶𝑜𝑠𝑡𝑠
𝑁𝑃𝑉 𝐻𝑦𝑝𝑒𝑟𝑙𝑜𝑜𝑝 = . 9
−.
(1 + 𝑟) : (1 + 𝑟)9:

Where r is the social discount rate used in the study


Where 𝑡> is the time horizon of the study

Proposed route

The route studied in the CBA is a mixed quadra to dual tube bidirectional hyperloop line located within the
Calgary - Edmonton corridor, following TransPod’s infrastructure requirements. The line starts at a central
distribution centre located on the southern part of Calgary. The line then moves northbound to the Calgary
airport which then merges with an airfreight distribution centre. From the airport, the four tube line merges
into a bidirectional dual tube configuration and continues up north to Edmonton. Midway, the line bifurcates
at Red Deer and continues northbound to the Edmonton airport. The Edmonton airport freight terminal is
connected to the hyperloop line which then continues towards Edmonton’s central hyperloop depot. This
line configuration was chosen due to its ability to relieve freight congestion inside urban centres and
facilitate intramodality with airports in order to increase the flow of merchandise in and out of the province.
This rapid freight link could enable freight transport from Calgary to Edmonton in only 25 minutes instead
of four to five hours needed today.

Limitations
This CBA provides an overview of the potential economic impacts associated with the implementation of a
freight hyperloop system between Calgary and Edmonton. Economists are well aware of the complexity
associated with freight modelling, which requires specific mathematical models capable of simulating freight

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flows within a region and compute the elasticities associated each variable. Such analysis is the scope of
the proposed feasibility study and not this simple CBA, whose goal is to provide an overview of the potential
economic impacts associated with freight hyperloop in the Calgary Edmonton corridor.
As the first logical application of hyperloop technology would be freight transport, this simplified analysis
was done solely for freight flows in the Calgary-Edmonton corridor. The diversion assumptions used were
limited to truck flows within the corridor as trains were not considered to transport any time sensitive goods.
Furthermore, airfreight within the corridor was excluded due to the lack of data available for air cargo flows
between Calgary and Edmonton airports.

Empirical findings:

Social Discount Rate


5.0% 10.0% 15.0%
Costs
Infrastructure Costs 10,517,780,000 10,517,780,000 10,517,780,000
O/M Costs 9,692,408,733 5,528,108,945 3,760,467,492
Truck Substitution 3,170,043,325 1,820,767,077 1,226,233,304
Total Costs 23,380,232,059 17,866,656,022 15,504,480,796

Benefits
Environmental Benefits 266,291,589 142,339,640 90,635,250
Revenues 22,020,362,375 11,791,870,301 7,519,570,400
Time Savings 11,819,806,872 6,018,635,964 3,682,629,488
Safety Benefits 556,390,578 342,885,803 243,128,399
Total Benefits 34,662,851,413 18,295,731,707 11,535,963,536

Total CBA NPV 11,282,619,355 429,075,685 -3,968,517,260


CBA Ratio 1.48 1.02 0.74

The largest benefits identified are the potential revenues for the network operator. The operator is assumed
to be a public organisation. Policy makers could thus see substantial public revenues from developing this
system coming from either direct sale in the case of a complete or partial public ownership, otherwise
getting revenues through private operator’s royalties. This high profitability could very well strengthen the
business case for undertaking the development of such systems for both public and private organisations
as the initial investment required for the infrastructure costs could be repaid over a period of fewer than 30
years. The IRR of the project is 10.34%.
The second largest benefit will be the travel time savings associated with reduced road congestion and
faster delivery of goods. Customers’ welfare could increase substantially due to the ability to receive their
time-sensitive orders faster. These benefits extend to companies which will be able to save a substantial
amount of money due to faster delivery. Not only this will allow a more flexible supply chain but will also
reduce inventory costs for a wide variety of industries. Larger industry benefits could be foreseen if the
hyperloop gradually gets modified to ship intermodal containers, which will be directly loaded from ports
and airports. The reduction of congestion will ultimately allow both companies and consumers to enhance
their mobility. With regards to policy makers, the time savings impacts will increase the country’s
competitiveness by providing businesses with more flexibility, enhance supply chains and increase mobility.
Wider economic impacts following the changes in GDP and agglomeration economies should be evaluated
in the future to provide a broader view of the benefits of integrating new modes of transport.

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The third largest benefits are the safety impacts due to the reduction of accidents in agglomeration and
highways. According to the data provided by the ministry of transport, trucks are responsible for a myriad
of accidents every year in the corridor. Due to a substantial traffic reduction, hyperloop could save lives and
damages on a yearly basis by reducing truck-induced accidents from 240 to 300 per year. By putting a
monetary value for each fatality, serious accidents, property damages and contrasting it to the reduced
amount of accidents, the CBA showed that society could gain from reducing road accidents.
The fourth direct benefit identified from the implementation of hyperloop in the Calgary Edmonton corridor
is a reduction of CO2 emissions. Ultimately, a modal shift to a greener form of transport such as hyperloop
showed to provide substantial environmental benefits for society due to the removal of 472,000 to 580,000
trucks on the road per year. Despite being the smallest impact category in this analysis, environmental
benefits are not meant to be taken lightly since the valuation can change depending on the carbon pricing
used. Overall, the diversion could remove 200,000 to 385,000 Tonnes of CO2 every year in urban areas
and highways.
After evaluating the benefits from the analysis, several costs were quantified and discounted. The first and
most important costs are coming from the infrastructure, which could become very expensive for policy
makers. Given the novel nature of hyperloop, precisely valuing infrastructure costs could be a challenge.
Over-valued infrastructure costs may result in failed investment projects and implementation problems
which could delay the system. The second cost impacts identified are the operational costs that are
quantified in alignment with exiting cost ratios of the railway industry and the forecasted power and
maintenance requirements of hyperloop. These operating costs are set to remain low enough to allow a
timely repayment of the initial investment.
The most debatable cost impacts on society are identified to be the industry effects following a substitution
effect via Hyperloop. This effect is explained by the increasing customer need for faster delivery services.
The CBA showed that the implementation of Hyperloop could lead to a loss of trucking jobs and revenue
losses for “for-hire” trucking companies (businesses solely focused on trucking). However, it is difficult to
determine the precise the degree of impact without using more advanced probabilistic models and establish
an accurate forecast. Nevertheless, it is possible to test the sensitivity of the NPV with regards to this
variable. The following section will thus perform two sensitivity analysis and determine the switching value
of each impact categories.

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11.4. Sensitivity analysis
The following spider chart shows the behaviour of different changes in the variables used for the Cost
Benefit Analysis.

10,000
8,000
6,000
ENPV (M CAD)

4,000
2,000
0
-2,000
-4,000
-6,000
-8,000
40.0% 60.0% 80.0% 100.0% 120.0% 140.0% 160.0%
CHANGE IN VARIABLE (%)
Infrastructure Costs O/M Costs Cost on Trucking
Environmental Benefits Operator Revenues Travel Time Savings
Safety Benefits
The main driver for a positive or negative NPV are the revenues forecasted by the model with a Switching
Value of 3.6%. This small value implies that a decrease of 3.6% in revenues could result in a negative NPV.
The price elasticity of demand for high-speed freight services will thus be crucial for the public or private
consortium operating the hyperloop line. While looking back at the primary data collected during this
research, freighters mentioned from the start the necessity of pricing the services as expensive as possible
given the time saved by shipping companies. The analysis also pinpointed that the Hyperloop could only
accommodate only half of the potential time-sensitive shipments circulating in the corridor, meaning that
the service could have the possibility to ramp-up the prices.
The second main impact drivers are the infrastructure costs with a switching value of 4.1%. Given this very
tiny margin of error, policy makers will likely have to deal with a project that will go over-budget easily. Given
the fact that the transport industry has a long history of exceeding infrastructure budgets, a small switching
value may imply a higher risk for policy makers. Finally, the third most important impact drivers are travel
time savings with a switching value of 7.1%. The importance of travel time savings can be criticized due to
the lack of standardised freight value of time among scholars and public institutions. Similarly, operating
costs scored a switching value of 7.8%. However, operating costs could be the first cost category depending
on the number of years used for the CBA, as well as the discount rate used. For the sake of this study, it
has been considered that a social discount rate of 5% was nearly impossible to achieve. Therefore,
operating costs may remain the second most sensitive cost category as these costs will likely evolve as the
technology gets developed in the future. Nevertheless, operating costs are considered to be an important
impact category in the CBA.
With a switching value of 23.6%, the costs on the trucking industry are still quite important for the decision
maker to consider. This switching value has been determined given the maximum impacts that a change
resistance of the trucking industry could have on the economy. This value assumes that the companies
whose activities will be directly substituted by hyperloop will undergo a net loss in their operations. However,
it is difficult to predict the degree of adaptation that trucking companies would have in response to a
substitution of their services. Furthermore, the construction of the hyperloop system and the industrial

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activity created by research and development efforts may create a substantial amount of jobs that could
ultimately absorb this industry loss and create wealth. The exact behaviour of these impacts will be further
studied in the proposed feasibility study, whose outcome will provide clear and transparent information to
the decision maker.

11.5. Conclusion of the CBA


The Cost-Benefit Analysis showed that the implementation of a freight hyperloop line in the Calgary-
Edmonton corridor possesses a strong potential for generating a net socioeconomic benefit after 30 years.
This system would divert trucks from the road, therefore reducing GHG emissions and providing significant
time savings to the companies using this high-speed freight system. As ecommerce is gradually growing
into a major revenue drivers for Canadian supply chains, this mode of transport could allow to make same
day deliveries a standard, cut warehousing costs and ultimately benefit the population as a whole. However,
there are still many uncertainties concerning the exact demand and diversion figures that this system could
generate. Furthermore, the value of freight time savings has not been enough studied to provide strong
decision-making figures. There is therefore a strong need for further research in order to develop a better
understand of the necessity or issues related to evacuated tube transport freight. The proposed feasibility
study will not only provide decision makers with the most in-depth analysis available on high-speed freight
but also significantly contribute scientifically to the understanding of freight time savings.

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