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Councillor Shona Johnstone, vice-chairman of the Local Government Association's economy and transport programme board, said the announcement was a "step in the right direction".
BBC: Lane rental scheme for digging up roads proposed
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He added that 70% of the current planned transport spending programme will be invested in public transport, helping to cut the number of single car journeys.
BBC: NEWS | UK | Scotland | Public have say on climate change
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David Begg, a transport academic, who is convener of the city's transport committee, has well-advanced plans for an ambitious public-transport infrastructure programme.
ECONOMIST: Northern light | The
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The other review will look into the wider Department for Transport rail franchise programme, and will be overseen by Eurostar chairman Richard Brown.
BBC: UK
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The first minister said the forthcoming Transport Bill will aim to "continue our modernisation programme for Scotland's transport system".
BBC: NEWS | UK | Scotland | McConnell details political goals
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The army is to be deployed to provide transport and other logistical support for the resettlement programme, the television reported.
BBC: Zimbabwe land showdown
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Transport Secretary Philip Hammond said it was a "rolling programme" but said passengers would start to see the benefits "within the next few months".
BBC: Electrification of London to Swansea line put on hold
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The Rail, Maritime and Transport Union says the number of attacks on transport staff is on the rise, and is embarking on a programme of trying to persuade employers to take action to avoid provoking public anger.
BBC: Stress: The effects
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Responding to the debate, Minister for Transport and Economy Ieuan Wyn Jones AM outlined the priorities for the recently announced Economic Renewal Programme (ERP).
BBC: Welsh Liberal Democrats debate
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One of the freighters has been chartered by the UN World Food Programme to bring in food aid, which is the biggest earner for local transport contractors.
ECONOMIST: Canny traders adapt to anarchy
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During his tenure voters have approved tax increases for an expansion of the light-rail transport system (2004), a new justice centre (2005), and a voucher programme for pre-school education (2006).
ECONOMIST: Paying for a changing city