£1bn SpaceX Dragon proves why galactic cargo shipping is big business

The world’s first commercial space shuttle to resupply the International Space Station has returned to Earth following a historic ten-day mission.

California-based Space Exploration Technologies (SpaceX) sent the Falcon 9 rocket and Dragon capsule to the satellite on 22 May, heralding what is widely regarded as a turning-point in space history. The unmanned Dragon is the culmination of six years of collaboration between NASA and SpaceX. NASA wants to cut down on the huge costs associated with launching resupply shuttles to the International Space Station, with SpaceX keen to take on the role.

The mission is an impressive feat for SpaceX considering it has existed for little over a decade. The firm was founded by South Africa-born business Elon Musk, who is known for setting up PayPal and Tesla Motors. The private company claims to have close to £2.6 [$4bn] in contracts, but unsurprisingly the relationship it has with NASA is core to its future.

[Related link: Inside the SpaceX Dragon capsule]

The unique tie-up is part of NASA’s Commercial Orbital Transportation Services (COTS), which is looking at opening up space exploration to the private sector by providing technical and financial assistance. NASA has already given £247m [$381m] to SpaceX for the Dragon and previous missions, which include the first successfully retrieved commercial orbiting of the Earth in 2010.  

But the future relationship between NASA and SpaceX relies heavily on the success of the Dragon, as its safe return will activate a £1bn [$1.6bn] contract to run 12 more flights to the Space Station.  Held within the Dragon is more than half a tonne of equipment sent from the satellite to test the cargo ship’s capabilities.

Future planned missions aim to transport astronauts to the Space Station.

SpaceX is not the only firm to have benefitted from a lucrative NASA contract. Orbital Sciences Corp is set to send the Antares rocket [previously known as the Taurus II] to the International Space Station in an identical mission penned in for August. The Antares will deploy the Cygnus capsule, which unlike the Dragon, is destroyed on re-entry to Earth.

Orbital’s initial project received £187m [$288m] in NASA funding, while there is also a £1.2bn [$1.9bn] contract on the table for a further eight cargo missions to be carried out until 2015. In essence the contract honours some of the most expensive deliveries ever, at £60m per metric tonne.

If that sounds like an eye-watering amount to you, remember that over the 40 years of the space shuttle program US taxpayers forked out more than £127bn [$196bn].