Rail is excellent for freight transport. There is no cheaper way to move a hell of a lot of heavy or bulky stuff across a continent, especially if what you're transporting is not particularly time sensitive and can wait for you to acquire full loads before setting off.
Rail is absolutely terrible for passenger transport. All the advantages of freight rail are lost once you switch to passenger service.
The only place passenger rail works is in the densest of urban environments.
The worst possible case is allowing a passenger train - serving a couple hundred people - to take priority over and interfere with a freight train that serves tens of thousands of people.