That would be a really long rail line. The closest village on the map to that one looks to be about as far as the main spawn point is from Funcowland. That's a lot of rail, and that's only to a tiny village with a couple buildings. The closest major village is almost double that distance, though I suppose there might be a closer one if we explored more.
That said, the new rail system I plan to construct eventually will only require one rail on each leg instead of two, so it wouldn't be as resource intensive to run rails between two spots. For the record, this is the rail station I'd like to use on the new system. We should probably retrofit the old system at some point as well, but that's a lot of work:
https://www.youtube.com/watch?v=asFgsGfsB8o