This paper aims to contribute to the process of evaluating urban rail infrastructure projects through the presentation of the methodology and the results of a preliminary feasibility study concerning the revitalization, development, and (re)integration of the rail with road, maritime, and air transportation in the Zadar urban area. The analysis included the identification and evaluation of rail infrastructure alignment variants that would ensure the revitalization of the existing railway infrastructure, relocation of freight rail traffic from the narrow and densely developed suburban coastal area, promotion of intermodal passenger and freight transportation, improvement of urban and regional accessibility and connectivity, increase of traffic safety, reduction of travel time and operating costs, and decrease of traffic impacts on the environment. By consulting legal frameworks, spatial planning documentation, and analyzing the socio-economic context and existing transportation infrastructure function, six variants for the (re)development of the rail infrastructure were designed. As their design approached the area’s transportation issues from different angles and could contribute differently to the area’s economic, social, and territorial issues, a multi-criteria analysis supplemented with a partial cost–benefit analysis was conducted to select the most suitable variant. The evaluation was based on seven weighted criteria quantified by the normalization of 32 indicator values, scored from 1 to 5, where a score of 5 was considered the highest. Weighting the scores according to the ratios determined through a consultation process with stakeholders resulted in ranking the best variant with a total score of 3.7 and the worst one with a total score of 2.6. To avoid potential objections that the set of criteria weights used was subjective and the result biased, a sensitivity analysis was carried out by systematically varying the weights among criteria. The results showed that the best-ranked variant was also the least sensitive to applied weight shifts, with a score range of 0.2.