Public transport in Iceland
The systems of public transport in Iceland are relatively underdeveloped and many areas are poorly served by public transport. Iceland has no rail-based public transport services. Overview. Limited services are provided in major urban areas, for example Strætó bs operates bus services in Reykjavík, and Strætisvagnar Akureyrar in the northern town of Akureyri. There are nationwide coach and bus services linking the major towns, although many Icelanders use domestic flights to get from one major town to another. Automobile ownership is also relatively high—the country has one of the highest rates in the world —with 580 cars per 1000 people (as of 2000), a figure similar to the United States. Unusually, this does not cause as much traffic congestion as one might imagine, as the urban area of Reykjavík is relatively spread out in comparison to its population. Therefore demand for public transport services is low and has not developed as much as it has in countries with similar levels of economic development. In recent years, however, there have been proposals to construct a railway service between Keflavík Airport and Reykjavík. The airport in Keflavík is Iceland’s main international airport, however it is  not situated close to the capital. It is currently served by a coach service, but Reykjavik City Council has agreed to conduct a feasibility study on the railway proposal, saying they are prepared to contribute 10 million krónur of funding. A light rail network within the capital has also been proposed. The country is served by some sea services. For example, ferries are available from the Faroe Islands and Denmark notable operators include Smyril Line amongst others. Ferry services also operate between Þorlákshöfn and the Westman Islands, operated by Eimskip.