The transport infrastructure and state-owned enterprises (SOEs) have a significant effect on competitiveness of transport industry, and indirectly determine the business environment in related sectors. In Latvia, all transport related state strategies and policies are developed, controlled and overviewed by the Ministry of Transport. Eleven companies are engaged in commercial/non-commercial activities, and evaluated whether the liberalization of certain activities would provide efficiency among SOEs in the transport industry of Latvia, given the sectoral weight and share of State involvement and control of the industry. There is limited and contradictory debate to what extent the Latvian state should involve in business activities of transport industry, and how to balance the multiple interests and targets of business, society and politics. The present research is based on the scientific papers, official documents of the World Bank and OECD (Organisation of Economic Cooperation and Development), company websites and annual reports.