The paper considers the effect on the environment and transport methods of a freight transport system which does not change the style of the existing freight transportation known as the Dual Mode Truck System which is based on electric vehicle technology. This paper mainly reports development conditions of short headway operation and vehicle divergence and merge technology at Public Works Research Institute, and also reports vehicle and method of guidance and communication technology. Recently, freight transport in Japan has required freight service with smaller and more frequent lots to accommodate the changes of industrial structures and the diversification of consumers' demand. Also, improvement and diversification of freight services such as just-in-time are demanded. Because of that, the dependency of freight transportation on trucks is increasing. However, freight service with trucks faces problems, such as traffic jams and accidents, environmental problems with air and/or noise, aging drivers and the aggravation of their work conditions. Also, the rationalization of systems and reduction of distribution costs are demanded. To solve these problems drastically, and to aid advanced industrial activities, a new freight transport system has to be established. The Ministry of Construction is now considering the development of a new freight transportation system using the dual mode truck system which utilizes underground space etc, and substitutes or supports truck transportation.
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