>It is also mind boggling that rail is not more popular there
That would require the upper class to mix with the poor. Not acceptable in Chile.
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Barely, different classes of carriage?
I don't know anything about the history of trains or carriages, but in the heyday of railway development in Britain (iron rails, steam locomotive, etc.) it would have been far less acceptable than today too. And still all trains I'm aware of/have been on have two classes of carriage. Indian trains have several, and similar cultural need for that I imagine (I don't really know anything about Chile).