One way or the other, if it is going to have state enabled monopolies and centralised price system then it should not operate for profit.
Although I would prefer a complete privatisation to a complete public sector run.
Take my favourite train operator at the moment. National Express East Anglia, "National Express East Anglia is the brand name of London Eastern Railway Ltd, a British train operating company. It is part of the National Express Group "
National express group, "The National Express brand was created in 1972 by the state-owned National Bus Company (NBC) to bring together the express bus and coach services operated by the bus operating companies within the NBC group.[3] The National Express network was largely a branding and management exercise, with services continuing to be operated by the individual companies."
http://en.wikipedia.org/wiki/Network_Rail more info
I tried to edit the wiki article with ie fascist as the end of the first paragraph, but they won't have it. "Network Rail is the government-created owner and operator of most of the rail infrastructure in Great Britain (England, Scotland and Wales).[4]; it is not responsible for railway infrastructure in Northern Ireland. Network Rail is a British "not for dividend" entity, technically a private company limited by guarantee, whose principal asset is Network Rail Infrastructure Limited, a company limited by shares."
They could start by allowing different train operators on to the same tracks and competing at different price levels for different levels of service quality.