>>1050869Historically, private companies ran passenger trains because it was a way to minimize losses on lines. Imagine this: You have ten trains running on a line per day. Each one of them makes just enough money above what it costs to run the train itself that you can maintain the tracks, pay property taxes, signal the whole thing, dispatch, ect. if you combine the total profits together. (IIRC, this amount needs to be about 70,000-80,000 per mile per year.)
Now imagine that on one day a week, there is only demand for nine trains. You, however, have the ability to run either a passenger train or a small, shitty freight train. The passenger train isn't as profitable as the other nine, but it is MORE PROFITABLE THAN THE ALTERNATIVES. As long as it covers its operating costs and depreciation on the physical train cars, it is absolutely worth running it, because it minimizes your loss.
Alternatively, imagine if you have a rail line where you are running those ten freights a day, but there is plenty of room for more trains. The problem is that there is no more freight to run. So what do you do? You run passenger trains, because once again, the cost of your tracks is ALREADY PAID FOR BY THE FREIGHT TRAINS, and since the passenger train's profits cover its operating costs and depreciation it is literally just free money.
Remember, unused capacity on rails is potential profit wasted. The only reason that private passenger rail isn't a thing is because
1. The freight railroads have realized they can use Amtrak to upgrade their tracks for them, so free money
2. Investing in passenger rail is not the most profitable investment. This is why All Aboard Florida is a thing, because they have maxed out their freight capacity, so the only thing left to make money on IS passenger rail.
