It might be easier to change today than it was in 1886. Back then, trains were really the only means of travel between cities. Today, there are less passenger trains than back then, though more freight (even with trucks and planes). But freight diversions/delays could be scheduled well in advance and have alternative means. Not to mention, since then we've developed variable gauge train tech. A subset of trains could run during the cutover.
It's likely more costly today, but less disruptive.
Remember that freight is more than just moving pallets of finished goods to Amazon warehouses. It doesn't matter if you've given the cows a month's advance notice, if they don't have feed they're still going to starve; and no matter how many KPIs you dangle at the silos, they're only going to hold x amount of reserve grain.
Did you not see how the markets recently reacted to certain components merely doubling in cost due to tariffs? In what world do you live in where the agricultural margins are high enough that the cattle ranchers can just casually absorb a threefold cost increase? Clearly they're eating the loss, because if they passed those costs onwards in the chain there'd certainly be huge economic consequences, as I said, and you wouldn't have felt the need to try and correct my premise. Anyway, I'd like to visit this world of yours, though only if you'd be buying the meals.
> Freight rail mainly exists as an low cost bulk carrier of convenience these days.
This is what happens when one tries to create a narrative from DoT statistics.
The reason why rail freight tonnage is less than truck tonnage is long-haul vs short-haul. You deliver lumber from the timber yard to the finishing facility once. That's rail. You don't load up trucks with semi-finished logs on an industrial scale, you don't load them with coal, you don't load them with industrial quantities of gravel or sand or steel either.
Once you have the logs processed into boards, then you use trucks to carry those boards to various short-haul destinations, where some of the boards are further processed into fence pickets and bird houses and old-timey sign posts that Roadrunner can inadvertently spin around so Wile E ends up taking a completely wrong turn. All of that stuff then goes to storefronts and warehouses (also short-haul) and as a result, the short-haul tonnage can count twice, three times, or even more, depending on just how many steps are being taken between "tree" and "birdhouse".
> Ships outcompete rail for bulk goods along inland waterways
Which is great along inland waterways, but if you're not located along them, you're probably using rail to get the bulk goods to the shipyard.
Cargo ships beat everything hands down if there's a port close to your origin and destination, and lots of water in between.
I don't think this is true in Europe. Certainly in the UK, passenger rail volume since the 2010s has set records higher than in any previous years, exceeding numbers that were last seen before WW2. Today there are fewer miles of track than there were in that era, but modern signalling technology allows more trains to operate safely on the same tracks, and modern trains run much faster on average.
As for freight, the US actually moves a significantly greater portion of its freight by rail than Europe does. Rail has around 40% modal share for freight in the US vs only 17% in Europe. One reason for this is that in Europe many lines are congested with passenger traffic, leaving few slots for freight trains to operate - except late at night.
It's also that rail tends to be more competitive for long haul traffic, and the US operators have big trans-continental freight networks well suited to that. In Europe there's a sharp drop off in modal share as freight crosses borders. Each national railway operator is in practice fiercely protective of its own turf, and there are a lot of hurdles to overcome. So in practice cross-border freight is largely done with trucks instead.
Despite the EU commission wanting to get some competition going on the rails and better interoperability requirements etc etc. for at least the past 30 years, the operators are still in the "discussion about preparing to setup a committee to discuss interoperability" phase.
Europe also has far more freight-friendly waterways. US rail is designed for dirt-cheap bulk transport for things like coal and grain. In most of Europe that's done by barge - but US geography doesn't really allow for that.