This is not true: Japan's rail systems are profitable on a cash-accounting basis (e.g. fares add up to more than day-to-day operating costs), but not if you include the immense cost of building the rail itself. When Japan privatized its rail, part of the privatization agreement included the government assuming most of the debts from construction, so the private entities wouldn't have them on their books. If you were to include these costs, Japan's private rails wouldn't even be close to profitable.