This research explores the potential for improving the economic mechanisms driving the development of passenger railway transport. To achieve this goal, the author systematized the advanced practices of the 25 countries with the highest levels of railway transport development in 2023. Drawing on the experience of these countries, the author developed a model for advancing railway transport within broader transportation systems. The research concludes that enhancing the economic mechanism for passenger railway transport is closely linked to increasing investment through public–private partnerships and a shift toward autonomous railway systems. This newly developed model enhances predictability and opens up opportunities for highly accurate planning and forecasting of passenger railway operations, marking a significant theoretical contribution to the field. The global outlook on improving the economic mechanism for passenger railway development holds practical significance because its implementation could address key challenges in the transport systems of the top 25 countries. The proposed scientific and practical recommendations for enhancing the economic mechanism of passenger railway development in Uzbekistan, which are aligned with global trends, have managerial importance. Their realization will promote the sustainable development of Uzbekistan’s transport system.