The Transport and Logistics subgroup established in the BRICS Business Council intends to facilitate dialogue among industry representatives from the member countries of the association.
This year, Russia has been granted the privilege to lead the BRICS Business Council, a new framework for global relations. The Association is founded on the principles of equality and dialogue. Association's significance is growing each year, despite Western nations' efforts to impede its trade and political relationships. Numerous countries aspire to join BRICS, which is viewed as the inception of a new world order characterized by multiple centers of power.
"The expansion of BRICS signifies the establishment of a multipolar world order. The Association's influence in addressing global challenges is poised to expand," believes Russian Foreign Minister Sergei Lavrov.
Recall that the BRIC association was established during the SPIEF 2006 by Brazil, Russia, India, and China at the behest of Russian President Vladimir Putin. The inaugural summit of the new organization took place in 2009 in Yekaterinburg. In 2010, South Africa joined as the fifth member, and the group was renamed BRICS. Currently, it includes nine countries: in 2024, Egypt, Ethiopia, Iran, and the United Arab Emirates joined BRICS+.
The global gross product share of all BRICS member countries, including new partners, currently stands at 37%. Almost half of the world's population lives in the countries of the association. About 40% of Russian trade turnover is accounted for by the BRICS countries.
The Interconnectivity Declaration
Today, Russia, along with its BRICS allies, backs efforts to broaden global economic integration and foster the growth of transportation and logistics routes. This is demonstrated by the Interconnectivity Declaration of the BRICS nations, which was adopted during the inaugural meeting of the Transport Ministers from the member countries at SPIEF 2024. It illustrates the key strategies for establishing a sustainable platform for sharing best practices, promoting technical cooperation, and advancing joint projects.
According to Oleg Belozyorov, CEO and Chairman of the Management Board of Russian Railways, robust infrastructure and versatile logistics solutions will assist the Russian Railways Holding Company and its partners in managing various challenges and crises, while also bolstering the economy. Conditions for the promotion of joint projects require effective coordination of initiatives, the ability to coordinate with heads of state, and interaction with the new development bank Business entities in BRICS countries are optimistic about the potential for mutual transport cooperation, as highlighted by Oleg Belozyorov. The ministerial meeting plays a pivotal role in fostering this collaboration, with the document signed serving as the cornerstone for enhancing logistical connectivity.
Transport and Logistics Subgroup
To facilitate communication between transport industry representatives and provide recommendations to heads of state on improving logistical connectivity among BRICS countries, a Transport and Logistics Subgroup has been established within the BRICS Business Council. On the Russian side, JSC Russian Railways supervises it, having taken the initiative to create it. The idea was supported by the national representatives of the Business Council of the association.
Notably, Russia serves as a key link between the East-West and North-South International Transport Corridors (MTCs). The combined rail freight turnover of BRICS nations accounts for nearly 64% of the global total. Since the start of the year, 121 million tons of different cargoes have been transported to the BRICS countries through the Russian Railways network, marking a 5% increase compared to the same period in 2023. Container shipments rose by 14% simultaneously.
"When creating a Transport and Logistics Subgroup, our goal was to unite transport players from different countries to enhance logistical connectivity within the association's countries. "And it wasn't until we launched this subgroup, following feedback from Russian and international partners, that we realized to what extent this interaction format was sought after," said Sergey Pavlov, First Deputy General Director of Russian Railways, in his speech at SPIEF 2024.
JSC Russian Railways notes that the participants of the Subgroup today focused on several priority areas of work. So, it is necessary to collectively establish a vision for the development of BRICS transport networks. We are talking the East-West, North-South ITC, sea lanes connecting the BRICS nations, along with the potential trans-African routes.
According to Gennady Kosolapov, Secretary General of the International Confederation of Trade Unions of Railway Workers and a professor at RUT (MIIT), any new knowledge is highly beneficial, particularly its promotion. "If we assume that the logistics capacities of our region are widely recognized, we are mistaken. At the same time, Simultaneously, we can gather cognitive insights on the evolution of logistics within the association's member nations," he added.
Additionally, an electronic communication platform called BRICS.Transport is currently being developed for the exchange of best practices and innovations.
As this takes place, addressing the challenges that nations face is unattainable without cultivating experts of a higher caliber. Based on this and the interest of Subgroup participants in exchanging best practices in personnel training, the creation of the BRICS Transport Academy is being explored. Currently, the participants have already held multiple online webinars.
Gennady Kosolapov views the creation of the Academy as a robust and timely initiative, especially in light of the expanding BRICS framework. The Russian Railways Holding Company envisions future educational events incorporating technical visits, lectures, exchanges, and diverse formats. This collaborative effort, coupled with cooperation among transportation universities, is poised to enhance the human potential development of BRICS nations.
"The establishment of this Academy is currently quite logical," stated Yulia Zvorykina, Vice-Rector at MGRI, a professor at MGIMO, and member of the Public Council of the Ministry for the Development of the Far East and the Arctic. The next phase could involve the mutual recognition of qualifications for transportation professionals among all BRICS member states. This is exactly what the BRICS Academy could be accomplishing. To achieve this, it is essential to outline a set of qualifications and establish criteria based on expertise, abilities, and professional background in the field to identify them".