You already have the core of it in your own question so why don’t you just extrapolate a bit. What is a railroad? It’s transportation infrastructure. What does transportation infrastructure do? It moves resources (as you pointed out) and *people.* What do cities need to grow? Resources and people. Places that were once remote were now readily and easily accessible by rail. When you have people and things passing along that route, that route is going to become a hub, or in other words, a city.
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