The increasing importance of urban transportation systems for economic efficiency as well as environmental sustainability are indeed required for quality of life in fast growing cities. Managing transport systems has thus become a primary focus for urban planners, policy makers and transport managers. This chapter reviews contemporary challenges and approaches in the management of urban transport systems, as it relates to the operational management, technological advancement, governance policy, feasibility and sustainability. The focus of the chapter is the shift in management of urban transport systems from traditional highway and road systems, to a more integrated with advance technologies and user-friendly systems cope with Artificial intelligence systems. Within the scope of urban transport systems management, key areas such as traffic management, management of public transport systems, management and provision of transport systems and services along with management of transport demand, are reviewed in detail. The chapter examines the contribution of management systems, such as the use of intelligent transport systems and operational decision support systems. As it relates to the operational, management and governance of urban transport systems, problems such as systems congestion, multiple agency partnerships, limited financial support, and the problems of regulation are also exhaustively discussed. The chapter also discusses the paradox of sustainable transport systems, the equitable distribution of the benefits of the transport systems, and the divergent perspectives of global and Indian systems of transport management. The synthesis of the contemporary and prevailing practices and the prediction of the probable future practices is of great value to transport managers and policy makers to manage the increasing complexity of urban transport systems.