While, at the moment, there is no light rail transport within Bruges at the moment, there is heavy rail transport, which translates into availability of train services. What the authorities have done is provide linkage by bus between the main railway stations and the various other parts of the city. The end result is a seamless transport apparatus: as efficient as what you have in the cities with light rail transport systems. It is also worth noting that a light rail system is under development, to connect Bruges to Ostend.
Cycling in Bruges can be challenging, due to conflicts between vehicular traffic and cyclists. The city is, however, doing a lot to encourage cycling, and if you are in Bruges for a longer duration of time, you can consider acquiring a bike and using it to get around.
It would seem that the authorities in Bruges are having a challenge in balancing the need to provide means for people to move around conveniently with the need to conserve the city (it being, as we mentioned, a world heritage site).