A new procedure for generating optimal transport strategies has been applie
d in nine European cities. A public sector objective function which reflect
s concerns over efficiency, environmental impact, finance and sustainabilit
y is specified and a set of policy measures with acceptable ranges on each,
identified. Optimal strategies based on combinations of these policy measu
res which generate the optimal value of the objective function, are identif
ied, and compared between cities. Resulting policy recommendations are pres
ented. The results demonstrate the importance of an integrated approach to
transport strategy formulation. They emphasise the role of changes in publi
c transport service levels and of fares, and of charges for car use. By con
trast, new infrastructure projects are less frequently justified. In the ma
jority of cities the revenues from car use charges are sufficient to financ
e other elements in the strategy. However, private sector involvement eithe
r in initial financing or in operation may be desirable. Revised objective
functions to reflect private sector involvement are specified, and optimal
strategies with private sector operation of public transport are also ident
ified. The requirement to meet private sector rates of return for public tr
ansport operation typically results in lower frequencies and higher fares;
charges for car use then need to be raised to satisfy public policy objecti
ves, but system performance is reduced.