Since the 1980s, European transport policy has transformed significantly due to market liberalization, deregulation, privatization, and increased competition. These changes have impacted administrative structures and relations between the State and interest groups. In Sweden, a 1979 traffic policy shift redistributed socio-economic costs, requiring rail and road traffic to contribute only their marginal costs while infrastructure expenses were covered by the State budget. In this context, the introduction of the government agency the Transport Council in 1980 aimed to enhance coordination and supply the government with analyses of the demand for transport but was abolished in 1991 due to conflicts with other government agencies and transport sector interest groups. This chapter analyses the Council’s inception and closure, identifying driving forces behind government reorganization in the Swedish transport sector.