Transport economics plays important role in the field of transportation studies. It explores the basic operating principles of a comprehensive transport system. Microeconomic principles will be taught to understand the interactions between the demand and supply sides of transportation. Market structures, pricing strategies, and different aspects of transport costs will be revealed to help students to understand the operational behaviours of transport service providers. Values of time and available mode choices of users will also be involved. Basic modelling concept will be introduced to realize the congestion effects in a transport system. Electronic road pricing and congestion charging will be introduced. Basic concept of using cost benefit assessment to evaluate transport projects will also be given.