This document is a summary report on the research theme "Light Rail - Light Cost, Part II" which was carried out at VTI over the period 1999-2004. Work on the research theme has compiled and improved the level of knowledge in a number of areas of importance for the creation of an attractive, effective and competitive transport system for urban and regional passenger transport. 

Most of the investments made in light rail systems have been successful. One important factor for success is a holistic perspective, i.e. that light rail is not only a transport supply solution between certain points but that it is also used as a strategic platform for a more comprehensive upgrading of urban transport systems as integral parts of other urban design. Light rail has become a means of creating more attractive cities, and this is considered to be of great local and regional economic significance. To invest in, and to run, a light rail system is a demanding task, and for the outcome to be satisfactory, comprehensive mobilisation of both traffic and urban planning and the associated policy areas is required. The report describes the history and development of light rail, and its properties and potential in urban and regional transport systems. There is also a discussion of the way in which light rail systems can be implemented in cities, and the planning and policy required at local and regional level to increase the share of passenger traffic carried by light rail and public transport. The report discusses costs and macroeconomic cost effectiveness calculations for investments in light rail systems. The report concludes with a discussion and a review of future research needs concerning light rail and public transport as a whole.