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Privatization probably would lead to a reduction in the number of long distance trains.  But it would not necessarily lead to an abandoment of all of them.  Australia privatized many of its long distance trains.  They are operated by a shareholder company.  It must comply with strict performance metrics, or it will lose the contract.  The services are subsidized by the federal government.  The Indian Pacific, Gahn, and Overland are the privatized trains, with the Indian Pacific and Gahn being two of the best train rides in the world.  I have taken both of them as well as the Overland.  The service is heads and shoulders above what I have experienced on Amtrak.  The employees know, I suspect, that the customer is king.  If they forget that, their jobs are in jeopardy.    The argument for the long distance trains is relatively weak.  Less than one per cent of intercity travelers in the United States use the long distance trains, but they account for the bulk of Amtrak's operating losses.
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