We need this in the U.S.
Gas prices are already expected to reach $3/gallon again by summer and I wouldn't doubt seeing around the $3.50 mark at some point later this year.
Rail is the *ONLY* mode of transportation that does not require oil in any great amount that can be implemented relatively easily with current technology.
Actually, I don't agree that we need this. I ride the bus here in Thailand over distances similar to the one described in the story - I think it was around 600 miles. (I go a little less than that to Bangkok very, very often). Buses basically accomplish an enormous fuel savings per person, without ANY added infrastructure cost. Of course they're gruelingly slow, but I suspect it will be more realistic in future to expect an ever falling standard of living - something which will force people to accept slower and less frequent travel.
The VIP bus (extra large seats, toilet, meal on board) here costs about $12 to go to Bangkok, which is not much money, and the great majority of the express or VIP buses travel overnight. This overnight travel does make the trip a lot quicker as there is much less other traffic, and the passengers sleep.
Similar services are even cheaper in Pakistan. Though I'm not sure if you would ever go there except Lahore.