When confronted with a level crossing, the game does not respond differently at all according to who owns it, what type it is etc. This is useful, as you can run competitors trains on your own track, as long as it is made out of level crossings, and you can they trap the train, a good sabotage method. You lay out level crossings in front of the enemies station as shown:

Then once you have done that, wait until you can destroy the level crossing between the train and the station, and the train is trapped, costing the competition money:

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