This study diagnoses the transportation infrastructure in Palestine. This includes roads, air, sea, freight, and public transport, as well as the institutional structure. This assessment should help formulate future developmental strategies and identify assistance needs. There have been considerable recent positive developments such as rehabilitating roads, constructing transport facilities, and establishing national institutions. Other developments were negative due to the great losses in infrastructure assets especially during the years of Intifada and the resultant incursions, which caused severe damage to transport facilities, restrictions on movement of people and goods, and weakening of Palestinian institutions. Land transportation infrastructure is the predominant type of transportation. It is estimated that about 50 percent of roads are under poor pavement conditions. Operation at Gaza International Airport was banned after the beginning of Intifada in 2000, and Israel damaged part of the airport in 2001. There have been efforts to construct a Palestine seaport in Gaza in 1999. Such efforts were stopped and Israel damaged some of its constructed parts. The public transport consists of buses, shared-taxis, and taxis. There is excess supply of shared-taxis, while the reliance on buses is limited. Freight transport is provided by land and by trucks and trailers. Other types are provided through Israeli borders. Therefore, the service is subject to Israeli control. Several ministries are involved in the transport sector. There is no official mandate or clear responsibilities identifying roles and duties. Therefore, roles overlap and some duties are not carried out by any party