Hardt Hyperloop said its vehicle had reached 85 kph at the 420 metre (1,378 feet) European Hyperloop Center test track in the Netherlands and had carried out a complex lane switching test.

It said the lane switching manoeuvre -- essential for networked routes -- showed there were no technical barriers to operating at aircraft-like speeds.

The development comes as China pushes ahead with its own high-speed projects, with state media reporting tests above 600 kph and a goal of linking Shanghai and Guangzhou by 2035.

Europe has yet to commit to a long test facility, though Germany and Italy are considering tracks.

"We are ready to go for higher speeds -- up to 700 kph -- as soon as the infrastructure so permits," co-founder Tim Houter told AFP.

The European Hyperloop Center, which opened last year, has hosted more than 750 test missions.

Hardt is one of several firms seeking to commercialise the hyperloop, a concept in which passengers travel in pods at near-supersonic speeds through vacuum tubes.

The test marks progress from a year ago, when the same track hosted trials at just 30 kph.

Backers insist the technology will eventually replace short flights in Europe and could cut energy use to a fraction of trains or planes.

First floated by Elon Musk in 2013, the hyperloop has consumed billions of dollars in trials but has yet to produce a viable commercial route.