Public transportation can be viewed as a key determinant and consequence of the social and spatial formation and development of contemporary cities and regions. Transportation policy generally combines four categories of instruments, i.e., investment, pricing, regulation and subsidy, to generate viable alternatives. Capital investment in public transportation supports the purchase of equipment and facilities including rolling stock, tracks, control equipment, and the construction of terminals, stations, parking lots, maintenance facilities and power generating facilities. Risk governance for public transportation investments looks at how risk-related decision-making unfolds when a range of actors is involved, requiring co-ordination and possibly reconciliation between a profusion of roles, perspectives, goals and activities. In this paper, a two-phased multicriteria methodology is proposed to select the best investment alternative for public transportation with respect to the predetermined criteria. In the first phase, a selection among transportation types is made, and in the second phase, a selection among transportation modes of the selected transportation type is made. A case study for Istanbul is given in the application section.