Like any public utility, there's a huge cost to get the infrastructure in place because there is... well... a CITY in the way. The immense capital outlay is generally worth it for the first to enter the market in a given area, because they stand to collect 100% of the demand for the service they offer. In contrast, a second competing entity incurs the same capital outlay, but can only count on as much of it's competitors business as it can wrest away. Unless their offering is of substantially better value, the most they can realistically hope for is 50%. In cases like local rail service, the initial outlay is so immense that there's little chance that anyone could make a compelling business case for it.
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