Connecting Helsinki To Stockholm in 28 Minutes, Hyperloop Would Create Baltic Super-Region With Vast Economic Benefits
Time Saved Worth More Than 320 Million Euros Per Year; Fare Revenue More Than 1 Billion Euros Per Year
LOS ANGELES - Hyperloop One, FS Links and KPMG announced today the results from the world’s first study of a full-scale Hyperloop system. The research data, presented at the Northern Light business summit in Helsinki, Finland, reinforce the transformational economic and social case for building the proposed 500-kilometer Hyperloop network linking the metro areas and airports of Helsinki and Stockholm. Passengers can make the trip between the capitals in 28 minutes, compared with a 3.5-hour flight or overnight ferry. The value of time saved by the network is an astounding 321 million Euros per year. Revenue for the complete system is estimated to be 1 billion Euros per year with an operating profit of 800 million Euros based on a forecast of 43 million passenger trips a year.
“Our findings confirm what we have been saying all along: Hyperloop is a time-saver for commuters and an incredible generator of economic benefits for cities and regions along the route,” said Rob Lloyd, CEO, Hyperloop One. “Hyperloop One is ready to take the next step and start construction. The Scandinavian region is a perfect location because of its strong economy, mobile population and global leadership as tech innovators. From the early stages, the region has been at the forefront of exploring Hyperloop as a transportation solution.”
The cost to complete the entire 500-kilometer Sweden-Finland network is projected to be 19 billion Euros, or 38 million Euros per kilometer on average. This reinforces Hyperloop One’s contention all along that Hyperloop technology can deliver higher-speed transportation for less than the cost of high-speed rail. The UK’s London to Birmingham fast rail project is currently budgeted at 100 million Euros per kilometer ($180 million per mile) for infrastructure only. California’s high-speed rail project is now between 69 to 79 million Euros per kilometer on average ($124 million to $143 million per mile).
The Hyperloop network would unlock new economic development in the region, too. Stockholm, for example, has a 13-year waiting list for new rental apartments. Plans by the Swedish government to add 210,000 new commuter homes in the Greater Stockholm can be incorporated into the route, building real estate values around Hyperloop stations that can whisk people to downtown Stockholm in less than 10 minutes.
“Hyperloop is the definitive 21st century transportation solution not only for the Baltic region, but for all of Europe,” said Mårten Fröjdö, Partner, FS Links Ab. “The numbers of the study do not lie: there will be a benefit for every city and region involved, especially considering that the study doesn’t account for cargo efficiency. We are completely aligned with Hyperloop One and are determined to launch the world’s first Hyperloop in Scandinavia.”
Based on the strength of the study’s findings, the city of Salo, Finland, has signed a Letter of Intent with Hyperloop One to become the first Hyperloop city along the proposed Helsinki-Stockholm route. Salo has a strong population of talented engineers eager to fill open tech jobs across the region that a Hyperloop would knit together with on-demand transport.
“Salo is an important market for this Hyperloop project because of its technological pedigree,” added Lloyd. “To have the city that is the driving force of many of the world’s best products and inventions want to be a part of this groundbreaking route is a proof point that Hyperloop will thrive in this region.”