The article discusses the impact of Sweden's 1988 Transport Act on the railway sector. The Act divided Swedish State Railways into a traffic transport company and a rail infrastructure administration. The goal was to create fair competition between rail and road sectors. However, the infrastructure administration faced challenges as a new state-owned monopoly without competition. The Swedish rail network requires significant investment to meet modern European standards. The author suggests allowing the national railway time to reorganize before privatization, creating smaller companies for feeder traffic, and strengthening national railways in collaboration with industry. Integration with European railways is also emphasized.