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https://steamcommunity.com/sharedfiles/filedetails/?id=2251987313
Longer trains maximize station utilization and make it easier to manage multiple trains on a single track, so I think they do help make more money that way.
In practice, the single train will work no worse than the 3 train case and may work better because it'll never have to wait at a signal for one of the other two. Also in early game it means that you don't need to add passing loops or double track saving a bit of cash to expand elsewhere.
Your other piece, yes combining trains can help with your line congestion, but you can also just add more signals.
In the end I think huge trains look terrific, but you actually need a reason to use them, otherwise they turn into bottlenecks of your network.
One awesome use for huge trains is supplying a steel mill...double coal and iron will allow you to haul a lot of goods that can be used right away, and shouldn't cause much traffic at that end.
I use trains with single or multiple units, depending on the traction rating. I never use trains that go above 120kmh/80mph for freight,
Basically, if the time between trains is too long, you could end up with empty delivery trucks sitting around waiting for the train deliveries which wastes money. Fix for this is to have larger truck depots that can hold enough product to keep the trucks busy until the next train delivery.
There is if you factor in the time required for train to enter/leave a station. In other words, it will take more time for 5 short trains to enter/leave a station than it will for one long train. For example, I have one line that has 8 trains, each with 40 cargo wagons that stops at 4 different stations. If I were to break that up into 32 trains, each with 10 cargo wagons, would be chaos on the line, and there is no way the stations could handle the traffic.
Simple example: supply everything to a food factory, at 100%, so ship in 800 units of crops, you get 400 units food. Now transport the 400 units of food with 1 train that matches that output...if you take it to a station, that covers a city that requires at least 400 units you a golden, all food will be used right away, no other transport required. However, if you have 4 different cities requiring 100 units food each, then you will either have to drop of in each city with the train and cover as much as you can OR you need to employ trucks for the next part of the delivery. If you only have 1 train transporting everything, then you could drop of 400 units at once at a truck stop...even at max truck stop length this could max out the terminals and you will loose goods. Also, if your truck stop is close to the cities you may have only a short trip, which means you would use only a small number of trucks, which means most of the dropped of food will stay on the platform for longer, which could mean you loose more products. You can avoid that by increasing your trucks, but then they would be empty for longer, or until the train arrives again, but more trucks will mean more traffic, which means clogged roads.
If you use more trains, and with that increase your frequency, you will only drop of smaller amounts that are easier to handle in the above, since you then loose less products you will make more profit.
This is simplified, every city needs at least 2 products, so the sample above gets more complicated as you add products.
Ergo there are good reasons to use huge train capacity, but you can't ignore the frequency
My cities' depots are always next to the industrial or commercial zone, hence I never lose goods. I also don't use trucks, too small for multiple stops in town, I use cargo trams.
I never thought of maxing the cities demand, I will try next time.
My post was just to help the OP with a simplified example of running with multi-locomotive trains. Yes, there are other considerations, but they are usually relatively small in effect and are often specific to the particular situation.