BRICS: Coordinated development of transport and logistics corridors

BRICS is an interstate association. Since January 1, 2024, it has included ten countries: Russia, Brazil, India, China, South Africa, Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates.

While growing rapidly, BRICS economies are playing an increasingly important role in global trade. The interstate association’s member countries account for more than 40% of global oil production and around 25% of global commodity exports. Currently, in terms of purchasing power parity, the BRICS countries contribute more than one third of the world’s GDP (35%). 

Among the BRICS countries, China, UAE and India were the top foreign trade cargo transporters through the Russian Railways network last year. China’s traffic volume climbed by more than a third (+36%), the Emirates’ by 2.6 times, and India’s by 1.9 times. 

The fact that BRICS states sit on the axes of key international transport corridors (“East-West”, “One Belt, One Road”, “North-South”, sea routes to Brazil and Egypt via the ports of the Azov-Black Sea basin) creates conditions for the advanced development of transportation by all modes - sea, aviation, and, of course, rail.

To date, the BRICS member countries’ railway network spans more than 382 thousand kilometers, including over 213 thousand kilometers of electrified lines.   Total cargo volumes handled by the rail network are about 8.4 billion tons per year. While annual cargo turnover exceeds 7.6 trillion tonnes per km, the passenger turnover has passed the mark of 142 billion passengers per km.

The Russian side initiated the formation of BRICS. Practical collaboration within the bounds of BRICS began in September 2006, when Russian President Vladimir Putin called the first meeting of the foreign ministers of Russia, China, India, and Brazil in this format on the margins of the UN General Assembly. As a result, the participants expressed an interest in the expansion of comprehensive quadrilateral collaboration. South Africa joined the organization in 2010, and Egypt, Ethiopia, Iran, the United Arab Emirates and Saudi Arabia joined in 2024.

BRICS serves as an integration platform for mutually beneficial partnerships. Among the main goals of the commonwealth’s main goals are to increase economic growth rates, gradually transition to high technologies, and improve the quality of life. Furthermore, participation in the BRICS should encourage trade and investment ties, ensure financial stability, and facilitate mutually beneficial cooperation between BRICS companies.

It should be noted that since January 1, 2024, Russia has taken over the BRICS presidency. The year will be held under the motto “Strengthening multilateralism for equitable global development and security”. The main event, the summit of the heads of state, will be held in October in Kazan. 

In November 2023, Vladimir Putin approved the Concept of the Presidency which, in terms of transport, provides for the expansion of cooperation, including rail. The main areas of collaboration will be to harmonize the regulatory framework, exchange information, improve transportation efficiency and lower logistical costs, and improve operational activities and efficiency. Furthermore, the paper establishes conditions for a coordinated railway development in the BRICS countries and promotes the implementation of critical projects.  

“BRICS is attracting a growing number of supporters and like-minded states who share the fundamental principles guiding its actions. Among them are sovereign equality, respect for the right to choose one’s own path, mutual consideration of interests, openness, and consensus, as well as a desire to establish a multipolar world order and a fair global financial and trading system. “We have to find collective solutions to the most pressing problems of the day,” Vladimir Putin said during the opening address of the Russian presidency of the organization.

BRICS Economic Partnership Strategy until 2025 and Action Plan for Innovative Cooperation for 2021-2024 are important areas of work for the Russian presidency.

Russia also pays due attention to developing the transport industry as part of BRICS as a whole. Thus, in August 2023, during the 15^th annual summit of the heads of BRICS member states in Johannesburg (South Africa), Vladimir Putin initiated the creation of a permanent commission on transport. It aims to provide a comprehensive solution for the development of logistics and transportation corridors, as well as to promote collaborative initiatives in the sphere of transport and logistics complex development. BRICS countries are expected to benefit from improved transport connectivity as a result of the commission’s activities. 

At the same time, during the summit, the Working Group on Infrastructure of the BRICS Business Council decided to form a Subgroup on Transport and Logistics.  Its tasks will be the coordinated development of transport corridors, work on the innovation agenda and exchange of experience in the field of personnel training.  

Taking into account the expansion of the BRICS membership, invitations have been sent out to transport and logistics companies to join this effort. As their participation is confirmed, a list of priority issues will be determined for the heads of State to draft recommendations.