The main objective of the research paper was functioning of transport, with focus on road and rail transport as well as development conditions. Economic integration, competition, innovativeness and EU market force Polish entrepreneurs and economy to undertake rapid modernisation of transport and its infrastructure also storage and forwarding. Investigating the matter, special attention was paid to: modes, development directions, service market as wells as conditions concerning transport and storage and infrastructure of transport. The analysis was prepared on the basis of empirical data of Central Statistical Office (CSO), press publications and specialist literature.
Key words: transport, characteristics and functions of transport, modes of transport, transport system, transport infrastructure, conditions and development directions, the process of integration of UE transport, storage.