We study dynamically rearrangable end-to-end transport networks by means of SDH/SONET and/or ATM virtual paths. The concept and its advantages are brie y reviewed and we propose a new algorithm for designing such networks. Our algorithm provides integer solutions, handles non-linear equivalent bandwidths, finds its own paths, and allows for an arbitrary design optimisation criterion. It is found to perform equal to or better than an earlier, comparable though more restricted, algorithm. We also put forward a strategy for managing virtual paths in real time. It consists of a repeated cycle of on-line measurement of offered traffics followed by the design and implementation of a new virtual path network. Methods and parameters for traffic measurements and network updating frequency are studied and optimised. Applying the strategy to rearrangeable networks subject to variable traffics in a simulator, we discover considerable gains and a robustness in our parameter settings.