If landing in Shanghai with the free visa, can I travel by train to Hangzhou east railway station?

I am studying in Hangzhou and my father will be visiting me in a month. The plan is: he comes from munich to Shanghai with the 72/144h free transit. I meet him there and after 1 day we go to Hangzhou and back to Shanghai. From there both of us will fly to Hong Kong. I know that it qualifies for the free transit. But can we use the train from Shanghai to Hangzhou or does it also have to be by plane?
Thanks for your replies.