most railways in Europe have been build by state programs to kickstart further industrialisation during the later half of the 19th century. prior to rail, the only way to transport bulk goods like coal and iron ore efficiently was through canalways. rails solved the issue of getting the raw goods to the industrial centers where people lived to produce goods efficiently. it also allowed for rapid expansion of cities and town and made cities and town with no access to a waterway far more viable.

privatization of rail only happenend after the cold war, and is mostly seen as a failure in most countries.