The council opposed to previous reopening plan because they thought it would take too much revenue from the ferry. Its already subsidised so any reduction would threaten is viability.
The 10 level crossings are another major problem. Either they are, closed, allowed to be used for passenger services (subject to installation of full automatic barriers) or they get replaced by bridges or a mixture of both. If they are allowed to stay it will cause congestion problems and if they are replaced it will significantly increase the cost of reopening (a straightforward replacement will be £4 million). I think School Lane (Fawley) crossing could be closed. Pumpfield Farm crossing could be closed and replaced with a few hundred metres of gravel track to Veal Lane (which only needs to be a call up gated private crossing). One each from the Fawley and Marchwood crossings would need to be replaced by a bridge to maintain reasonable flow of traffic. Jacob's Gutter Lane (Hounsdown) probably needs bridging too. That would mean 2 closures with related works, 3 bridges, 4 automated full barrier crossings and retaining 1 private crossing. Not cheap alongside relaying all the track, some new but basic signalling and three stations including a big a park and ride car park.