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The public transportation network that is available in the city of Montpellier is very good, and offers visitors the options of buses, trams, trains, and taxis.
There are many bus routes that make stops at the Montpellier Train Station, which is located in the city center. Because the city is so small (check out this Tourist Map for a visual idea), many places are reachable by walking or biking. However, there are certain areas that are too far for walking, and must be reached by tram or bus. The TAM (public transportation network of Montpellier) has recently finished building the city’s new tram system. Between buses and trams, people have access to many stops within the city, as well as 15 smaller towns close to Montpellier. By tram it is also possible to reach the beach nearby (Carnon). Tram pass frequently, in particular during the day; at night, according to the lines, they pass each 15-20min. Worth mentioning also the night bus "l'Amigo" that links the city center with the clubs just outside Montpellier. It runs Tue to Sat from midnight to 5pm.
For transportation from Montpellier to cities all around France and Europe, visit the Bus Station that is located in the city center near the train station. Many bus companies have offices in this station, including Eurolines (http://www.eurolines.com/). The Talgo Train Company offers direct trains to Barcelona and Valencia.
Taxis are available in the city, but are not often caught on the side of the road. The way to obtain transportation from a taxi is to call one of these Taxi Companies in the City ahead of time to arrange for a pickup. Most hotels, restaurants and bars will be happy to call a cab for their customers.
Finally Montpellier is a city relatively flat (however downtown has some steep hils) a good way to move around is by bicycle. You can rent a good bike at one of the shops, but the dest choice is to take VéloMagg, Montpellier bikeshare system. With 51 stations it's easy to find a bike nearby and travel for a reduced fee. It is also possible to use these bikes to go to the beaches. Moreover bikes can be transported into the tram is there is enough room (not in the door just behind the driver though). Velomag bikes are not bad, with 3 speeds, but are quite heavy. If you bring your own bike be aware where you park it, a lot of bikes are stolen in this city.