I agree that Canada definitely needs to build more North-South rail lines between Canada and the US. Nationalism aside, just from the practical standpoint of transportation costs, It makes more sense to promote trade between Montreal and New York City than between Montreal and Vancouver for example.
Even from the standpoint of poverty-reduction, reducing transportation costs by promoting more trade between Montreal and New York City than between Montreal and Vancouver for example could help the poor too by reducing overhead transportation costs that businesses must pass on to consumers.
That said, if we are to promote more regional free trade, then we might need to invest more in trades and professional education for the unemployed to help truckers transition to new employment for example.
If we're talking about high-speed rail (which is the case here), then yes, that's passenger-only beyond maybe light freight like mail maybe. Even with that though, it could make more sense to promote more North-South lines between Canada and the US and then just take advantage of the US' East-West lines due to the US having more population density. It would be a win-win situation. Canada saves money on not needing to build as many East-West lines in low-population-density zones and the US makes money off of Canadian passengers. For example, the US might then have an interest in building an East-West line across the Northern states and the more populated centres to take advantage of the Canadian market.