The study explores the public goods characteristics of railway services in terms of public finance theory and looks for ways to privatize these services. It is possible, according to economic theories, to open up the industries to competition that the state has transformed into legal monopoly by economic regulation due to natural monopoly. This also applies to railway services. Accordingly, the railway industry is subdivided by vertical separation; rail flooring and signaling installation part, which has the nature of natural monopoly, remain in the public monopoly; it is possible to liberalize other parts (passenger and freight transport and maintenance-repair works). In vertical separation, the establishment establishing the infrastructure service may continue public ownership and the part providing transportation services may be opened to competition. The need for regulation is eliminated or the regulation can be reduced in the markets where the units opening up to competition by vertical division operate. The way of horizontal separation is to compete on more than one line between two points in railway operations and is generally used in freight transportation. According to the destination competition, which is a type of horizontal separation, it can be divided into multiple geographical regions in railway operation, and the operation of the segments formed can be left to private companies.