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Other problems frequently encountered in the development of rail systems, in both developing and developed countries, are significant underestimates of construction costs and the time required for construction and commissioning. Construction costs in particular have exceeded the initial estimates by several hundred percent in some cases, and some projects have not been completed. Several early schemes involving private sector investment have failed to provide the returns anticipated, and investors are tending to become less willing to take on as great a share of the risk as governments would like.

Increasing car ownership is also having an effect on the layout of cities, with greater decentralisation of commercial activities and dispersal of residential areas. This has implications for transport provision: public transport is relatively inefficient in serving areas of low population or employment density. The urban transport problem, in both developed and developing countries, has been well documented: this book does not set out to re-examine the problem, but instead examines the role of public transport in meeting urban transport requirements, and discusses the specific problems involved in providing public transport services in cities in developing countries.

With the rapid urban growth in developing countries, there are many cities which have outgrown their transport systems: where the system has been based on paratransit vehicles, the number of operators has tended to increase, but in many cases no formal transport operation has developed to cater for high demand on the main route corridors, even though this is what is usually required. Inter-urban and Long-distance Transport Services Inter-urban and long-distance transport services cater for people travelling between one town or city and another, and between rural districts and the towns.

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