BRICS expansion and integration in the field of transport

BRICS is the expansion of economic and political cooperation beyond the established BRICS circle with any country, bloc or region of the world economy through the transformation of the platform in favor of greater inclusiveness and openness.

The BRICS concept was first proposed by China in 2017 with the aim of turning the bloc into the world’s most influential platform for South-South cooperation. By early 2024, the idea of BRICS had the support of 23 countries, which submitted official applications to join the bloc. Six of these were accepted — Egypt, Ethiopia, Iran, the UAE, Saudi Arabia and Argentina. 

However, only four of them joined BRICS, as the new President of Argentina, Javier Milei, abandoned plans to join the association, and the process of the official accession of Saudi Arabia stopped at one of the stages of internal coordination: it took the country more time than initially expected to weigh the economic benefits and political risks of such a step. 

BRICS includes the largest buyers of oil from Saudi Arabia — China and India. It also exports significant volumes to the UAE and Egypt. The expanded BRICS, built on the principles of non-interference, equality and mutual benefit, is intended to serve as a platform that unites the diverse interests of complementary economies, and a means of balancing forces with Western countries. The decision on Saudi Arabia’s participation in BRICS comes amid heightened geopolitical tensions between the US and China, as well as China’s growing influence in Saudi Arabia. In addition to strengthening relations with China, the Kingdom’s accession to BRICS opens up access to the growing economies of the BRICS countries, as well as contributes to the diversification of the Saudi economy. 

The decision on the accession of the remaining countries that have applied to BRICS remains under consideration by the Council. They include Algeria, Bangladesh, Bahrain, Belarus, Bolivia, Venezuela, Vietnam, Honduras, Indonesia, Kazakhstan, Cuba, Kuwait, Morocco, Nigeria, the State of Palestine, Senegal and Thailand. Also in 2024, Malaysia11 and Azerbaijan  announced their intention to join BRICS.

Thus, all key ASEAN members are interested in rapprochement with the BRICS. If the current wave of BRICS expansion covers mainly the Middle East and North Africa, then the next one is likely to affect the Southeast Asian region, which fully meets the strategic interests of BRICS, especially in the development of ITCs.

The lack of statutory documents that regulate the accession procedure in detail creates difficulties for predicting the geography of the future of BRICS. Since summits remain the main format of the bloc’s work, the contours of the further expansion of BRICS will become sharper at the next of them, which is scheduled for October 22-24, 2024 in Kazan.

The BRICS platform can make a unique contribution to building a more stable global economic structure by acting as an “integrator” for numerous regional integration agreements in the Global South, and trade liberalization is one of the main gateways for future cooperation among emerging economies. At the same time, for the uniform and consistent growth of mutual trade, it is critically necessary to use the opportunities provided by the unique cross-continental/regional format of BRICS, namely, to ensure the realization of its transport potential.

The inclusion of Iran in the BRICS plays a decisive role in the development of transcontinental ITCs, since its geographical location opens up opportunities for the connection of latitudinal and meridional corridors. As a territory connecting the Caspian Sea, the Persian Gulf and the Indian Ocean, Iran acts as a point of intersection of the most important cargo flows, including the North-South ITC. The linking of routes could combine Chinese cargo traffic with potential Indian cargo, stimulate additional investment, and contribute to the establishment of interregional ties. In order for Iran to realize its transit potential, its transport infrastructure, especially ports and railways, is of critical importance.

The development of railways in the BRICS space is the most important element in realizing the transport potential of the association. The total rail freight turnover of the BRICS countries is almost 64% of the world total. The railway network of the BRICS countries covers more than 382 thousand km, including more than 213 thousand km of electrified lines. The total volume of cargo transported on the railway network is about 8.4 billion tons per year. 

In order to maintain the long-term interest of states in them, transit routes should help solve the internal problems of transport and logistics infrastructure, the containerization of cargo transportation, administration, and the establishment of interregional ties.

An important element of integration in the field of transport is also the partnership of multimodal operators of the BRICS countries to increase the total capacity of assets, develop independent institutions for insuring the risks of transport companies, and provide the services necessary for transport, including mutual settlements. It is also necessary to study the possibilities of increasing the efficiency of international trade through advanced technological and legal solutions in the field of cargo flow administration. It is important for the governments of the BRICS countries to formulate a systematic and coordinated approach and maximize cooperation between the main beneficiaries of foreign trade — national manufacturers and carriers.

As a link in the most important international transport corridors, East-West and North-South, as well as a BRICS chair state in 2024, Russia has taken a leading role in the development of the transport system in the association.

At the 15th Annual Summit of the Heads of BRICS Member States in August 2023, Vladimir Putin initiated the creation of a permanent commission on transport to coordinate the efforts of countries to develop logistics within BRICS, ensure the operation of transport corridors and improve transport connectivity between the participating states. 

Subsequently, the Working Group on Infrastructure of the BRICS Business Council decided to establish a Subgroup on Transport and Logistics, the tasks of which, in addition to coordinating the development of transport corridors, will be work on the innovation agenda and the exchange of experience in the field of personnel training. 

In June 2024, the first meeting of BRICS Transport Ministers was held as part of SPIEF. The discussion touched on topics such as the development of the transport industry, the promotion of industry cooperation, and the future in the digital age. Following the meeting, the participants adopted a Ministerial Declaration, which defines the key priorities of cooperation: transport connectivity and supply chains, innovation and digitalization, urban mobility, and the environment. 

Another important decision has been to make the Subgroup on Transport and Logistics a permanent Working Group, which will be chaired by Russia for a transitional period (two years — 2025 and 2026).

An agreement has also been reached that in 2025, a permanent logistics platform will start to work: the BRICS Logistics Commission will be headquartered in Dubai and bring together representatives of the transport and logistics sector.

Also, following the meeting, a memorandum was signed on the development of piggyback transportation between the Chinese port of Jinzhou, the state corporation Russian Railways and the piggyback operator PFCO Express JSC. 

The document defines the implementation of comprehensive measures to increase the attractiveness of piggyback transportation services and the development of optimal logistics solutions for the transportation of goods in piggyback trailers and long-haul truck tractors using specialized well-type platforms. Today, piggyback transportation is one of the most innovative and popular trends in the development of cargo transportation. 

This innovative technology combines the benefits of both road transportation — door-to-door delivery, and rail transportation — delivery on tight schedules in line with deadlines.

Based on the results of the Group’s work, the following main areas of activity in 2024 can be identified:

• Protecting transport infrastructure from disasters: coordinating recovery efforts in response to natural hazards such as climate change. The Disaster Management Measures proposed by the IMO (International Maritime Organization) can serve as a general guideline.

• Development of transport and logistics routes connecting the BRICS countries: Five main areas of development have been identified, a detailed analysis of which is given in Section 2 of this study.

• Development of the Guidelines on BRICS Transport Routes: this work is carried out in order to increase the transport connectivity of the BRICS countries and unify approaches to logistics. The draft Guidelines are due to be presented at the next Summit. 

• BRICS transport portal: an Internet-based electronic communication platform for the exchange of information on innovations and best practices used in the transport and logistics sector of the BRICS countries. An electronic platform to publicize the work of the Group, BRICS.Transport.com, is currently being developed. Russia has assumed responsibility for filling and moderating the site during the 2025-2026 period.

• BRICS Solution Awards: The identification of promising technology projects within the BRICS countries.

• BRICS transport academy: human capacity development in the field of transport and logistics, educational and awareness-raising events and master classes (online and offline) with experts and institutes of the transport industry.

• Sustainable development: discussion of measures in the field of transport that contribute to the achievement of the UN Sustainable Development Goals, preparation of a common position of the BRICS countries on reducing the share of transport in global hydrocarbon emissions. 

Conclusion

The effectiveness of the joint work of the BRICS countries and the rapprochement of their economies are fully reflected in the indicators of the dynamics of the development of mutual trade and investment. The unification of the trade and industrial potentials of the BRICS countries will create conditions for the organization of the efficient transportation of goods at a minimum cost. The BRICS space has concentrated the world’s largest suppliers and consumers of basic resources, as well as the most populous states and growing consumer markets.

Over the past year, among all the member countries of the bloc, Russia has shown the greatest orientation of foreign trade to the BRICS markets: trade with the countries of the association accounts for almost half of the state’s foreign trade turnover. Russia’s role and place in the future BRICS trading system, as well as the economic benefits of this position, are largely determined by the emerging transport framework. Active participation in building an independent BRICS transport and logistics network that is resistant to external challenges fully meets Russia’s long-term foreign economic interests.

Russia’s geographical location makes it possible to use the territorial aspect as an additional tool for integration into the international economy. Active participation in the development of the Eurasian transport framework and the BRICS international transport corridors makes it possible to take national interests into account in the emerging transport architecture. The growing role of the North-South ITC, an onshore alternative to the Suez Canal, is due not only to sanctions against Russia, but also to the shift of economic activity centers to China, the countries of Southeast Asia and the Persian Gulf.

The development of the transport connectivity of the BRICS countries serves the purpose of promoting both trade within the bloc and international trade in general. Improving logistics will strengthen or create strong transport chains between states. By remaining committed to the UN Sustainable Development Goals and recognizing the need to reduce the carbon footprint, the BRICS participants are focusing joint efforts on removing barriers to the unhindered, free and non-discriminatory movement of goods and services, as well as reducing logistics costs and improving the efficiency of supply chains. The development of BRICS transport corridors also contributes to the development of regional infrastructure and the economies of countries, providing new opportunities for trade, tourism and cultural exchange.