Train as one mode of transportations has a special advantage especially in term of its aballity to transport passengers or goods in bulk energy saving efficient in the use of space low pollution levels and more efficient when compared with road transport as transportation equipment remotely. Rail transportation modes are also more efficiently used for the dense traffic of the region. An increasing number of big population has not been able to accommodate the burden of transportation especially in java. The share of railway tranportation need to be increased again in an attempt Development of Intregrated National Transportation System.Operation of railway transportation need to be managed carefully in order to manifest railway transportation that is safe comfortable orderlay rapid precise and integrated with other transport modes. this study aimed to investigate the effect of variable i.e. passenger-kilometers ton-kilometers of good transported as well as dummy variable (before and after the economic crisis) to the Gross Value Added of railway transportation. In addition this study also aims to determine the economic impact of railway transportation to other econamic sectors through its multiplier. The results showed that the regression constant passenger-kilometers (X1)and a dummy variable (X3)significantly influence the increase in Gross Value Added of railway transportation. Variable ton-kilometers of goods (X2) showed no significant effect. Railway transport showed the highest backward linkages compared with other economic sectors showed the most rapid growth due to an increase in output of railway transportation as industry sectors contructions trade and mining. But railway transportation showed forward linkages is low.