Transport demand in urban areas increases with population growth and urban sprawl. In developing countries, urban population tends to be concentrated in a few cities which develop to mega-city proportions. While the number of registered vehicles increases exponentially, the growth in road space or rail infrastructure is relatively slow. Private vehicles proliferate, mainly due to deficiencies in the supply of public transport. The roads, which are inadequate in quality and quantity, have to serve mixed traffic. For sustainable transport in mega-cities, the traffic planning should consciously encourage integrated public transport, with balanced bus and rail transit components. The paper discusses the above situation and recommends related measures such as transit fare policy, park-and-ride facilities and demand management strategies appropriate for developing countries.