2008 by Taylor & Francis Group, LLC. Transportation systems form a vital backbone of economic activity, enabling the movement of people and goods required for providing goods and services. Effective creation and management of transportation systems can provide a substantial competitive advantage for a firm in the private sector, and can drastically influence a nations productivity and global competitiveness from a public-sector perspective. This chapter provides a foundation for understanding critical factors in efficient transportation system development, as well as the complexities that lead to challenging decision problems in transportation service delivery.