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Events
January events
- January 6 – A computer-controlled Washington Metro train overruns the platform at the Shady Grove station, colliding with a parked train and fatally injuring the operator.
February events
- February 4 – The first two British passenger train operating companies begin operation of their service franchises as part of the privatisation of British Rail: South West Trains (part of the Stagecoach Group) and Great Western Trains (Great Western Holdings).
- February 9 - 1996 Secaucus train collision: A southbound New Jersey Transit train (Train #1254) bound for Hoboken Terminal collides nearly head-on with a northbound NJ Transit train (Train #1107) heading to Suffern. 3 People are killed.
- February 10 – Woodlands Extension of the MRT North South line in Singapore opened, adding six new stations to the current network.
- February 16 – 1996 Maryland train collision: A Chicago bound Amtrak train, the Capitol Limited, collides with a MARC commuter train bound for Washington, killing 11 people.
- February 19 – Approximately 1,000 passengers are trapped in the Channel Tunnel when two Eurostar trains break down due to electronic failures caused by snow and ice.
- February 24 – The three British trainload freight companies, Loadhaul, Mainline Freight and Transrail, are acquired by North & South Railways, a subsidiary of Wisconsin Central, as part of the privatisation of British Rail.
March events
- March 4 – Weyauwega, Wisconsin derailment: A Wisconsin Central freight train derails on a broken switch in Weyauwega, Wisconsin. The derailment forces the evacuation of the entire town until March 20 while fire crews work to control the resulting blaze.
- March 15 – Amtrak selects the "American Flyer" design developed by Bombardier and Alstom, based on the TGV trains of France, as the design model for its Acela rolling stock.
- March 18 – SNCF begins a construction project to renew the track ballast on the Paris-Lyon TGV line; the project is expected to last through 2006.
- March 20
- In Seoul, South Korea:
- A section of Line 5 of the Seoul Metropolitan Subway is opened independently from Banghwa to Kkachisan ().
- A branch of Line 2 of the Seoul Metropolitan Subway is opened from Sindorim to Kkachisan.
- In Seoul, South Korea, a branch of Line 5 of the Seoul Metropolitan Subway is opened from Macheon to Gangdong ().
April events
- April 14 – The British trainload freight company North & South Railways Ltd becomes EWS.
- April 21 – The Jokela rail accident, a derailment in thick fog, kills 4 in Tuusula, Finland.
- April 27 – The Tōyō Rapid Railway Line, connecting Nishi-Funabashi and Katsutadai opens in Chiba Prefecture, Japan.
- April 28 – Further British train operating companies begin operation of their passenger service franchises as part of the privatisation of British Rail: Gatwick Express and Midland Mainline (both National Express) and Great North Eastern Railway (Sea Containers).
- May 20 – The British railway infrastructure management company, Railtrack, is privatised, being floated on the London Stock Exchange with shares worth 360p.
- May 26 – Further British train operating companies begin operation of their passenger service franchises in England as part of the privatisation of British Rail: Connex South Central and LTS Rail.
- July 27 – Ron Burns becomes president of Union Pacific.
- July 28 – The Talleyr and Terminal Railroad (a subsidiary of Genesee & Wyoming) begins operations in Jacksonville, Florida.
- July 31 – Canadian Pacific makes the last run of a grain load in a boxcar with the final deliveries of grain to Thunder Bay, Ontario.
- July 31 – The first low-floor light rail car in North America is received (from its manufacturer, Siemens) by Portland, Oregon's TriMet.
August events
- August 12 – In Seoul, South Korea, the northern section of Line 5 of the Seoul Metropolitan Subway is extended from Yeouido to Kkachisan (). The merged company retains the name "Union Pacific" for all railroad operations.
- September 14 – The York–Durham Heritage Railway begins operations on Canadian National's former branch between Uxbridge and Stouffville, Ontario.
October events
- October 1 – The Norwegian Railway Inspectorate is created.
- October 11 – In Seoul, South Korea, Line 7 of the Seoul Metropolitan Subway is opened from Jangnam to Koknuk University ().
- Canadian National operates its last train of grain to be hauled in 40 ft (12 m) boxcars; CN SD40s numbered 5256 and 5051 depart Canora, Saskatchewan, with a train of 114 such boxcars bound for Winnipeg, Manitoba, and Thunder Bay, Ontario.
- The Brahmaputra Mail train bombing: a bomb explodes a train travelling in Lower Assam in Eastern India, totally destroying three carriages of the train and derailing six more, killing at least 33 people.
- In Seoul, South Korea, Line 5 of the Seoul Metropolitan Subway is extended from Wangsimni to Yeouido ().
