> The point is that the free market creates less than an efficient amount of transit

I understand your point, but am providing a real world example in the form of a privately run railroad that was more efficient than its subsidized competitors.

> put the burden of paying for that infrastructure entirely on people who travel instead of all the people who benefit thereby

I agree with this part of the statement, but it's false to assume the free market can't utilize this payment model.

The bulk of the railways and roads that I cited were paid for not only with user fees but investments by businesses or entrepreneurs who rightly assumed that they'd reap benefits from railways and roads being constraucted in their districts.