Not mentioned is what to do with the smoke from the locomotive. I expect all the passengers would asphyxiate before they emerged from the other end.
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There are solutions for this today. They're widely used in rodless pneumatic cylinders.[1] The seal is flexible metal strip to metal, forced closed by the interior pressure of the cylinder. In the 1980s, there was a brief revival of the technology by Aeromovel, which built a few theme park and airport systems. None seem to be still running.