This thesis has focus study in traffic management using intelligent transportation system in urban area. The goal of this thesis is to improve the traffic management and space optimization using Intelligent Autonomous Vehicle (IAV) by describing traffic flow in macroscopic level. The two fluid model is appropriate model which provides characteristics of the performance of traffic flow on an urban road network. The model can generate a relationship between trip time, stop time and running time per km. To apply the model, the traffic data that obtained by using the traffic simulator of SCANeRTM studio.