That sounds like an excellent idea. However I think rail transport depends more heavily on quality infrastructure. If a state doesn’t maintain its roads well and allow potholes to develop, it is probably rare for that to cause a fatal accident (I’ve heard of potholes causing damage to cars but not deaths). But improperly maintained rails lead to derailments and deaths.

You may still need a public train service or subsidies of some kind to make sure unprofitable but vital routes get served