This chapter uses the concept of collaboration to discuss the conditions for transport governance when planning and decision-making capacity is formally divided between organizations. Public transport is used as an empirical example. The chapter provides a conceptual understanding of collaboration and gives lessons that can guide collaboration attempts regarding the nature of the relationship between and the behaviour of participating organizations. Collaboration is described as a gradual trust-building process in which organizations build a joint problem formulation that channels their individual actions in a joint direction whilst still providing space for the individual organization to fulfil its objectives. The chapter ends with a discussion of how collaboration has become a tool to fulfil a coordination need that has arisen because of reforms in the transport sector. It concludes that collaboration as a mode of steering fits well into the dominant transport policy paradigm of deregulation and competition