“Roads? Where We’re Going We Don’t Need Roads.” Using Agent-Based Modeling to Analyze the Economic Impact of Hyperloop Introduction on a Supply Chain

The opportunity to connect distant areas in quick and economical ways has always been a critical element for trade and economic development. Significant progress is often accompanied by the emergence of new transport models, as it happened in 21st century China with high-speed railways, a driving force for its economic growth. In 2013, the Hyperloop Alpha white paper publication presented the opportunity for a significant innovation in transportation, which could have an even more disruptive effect. In this paper, we will estimate the possible impact on a Supply Chain of constructing a Hyperloop line for goods transportation. We develop an agent-based model of a simple Supply Chain system to simulate the introduction of a faster transport line. We observed that a positive relationship exists between the introduction of a faster line and the performance of the firms near the cities connected by the new line. We conclude that the adoption of a Hyperloop could significantly affect the region in which it is implemented. Since the technology is in its infancy, there is still room for further research.