Shortline railroads
 

I remeber a small game of train managing, that had some cities along the screen edge, which had to be connected. You could build railways and control intersections. The trains sent out were color coded to match their destination.

Anyone have any idea what it's called?

The game is called Shortline railroads.
http://www.the-underdogs.info/game.php?id=977
You can find it on some russian sites, it's freeware nowadays.

Shortline railroads

Designer: Andrei Snegov
Developer: DOKA
Publisher: Freeware
Year: 1992
Software Copyright: DOKA

[FREEWARE]