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Eco Iraq Observatory points out that railway revenues in Iraq are unprofitable, due to a legal issue preventing trains from reaching the Kurdistan Region because of land ownership disputes. The current network between Baghdad and Basra operates on two main lines with a capacity of up to 360 seats per trip. Revenues are primarily generated from freight such as oil and grains. Other lines, which are irregular or seasonal—like Baghdad to Karbala—do not run daily or are currently inactive. The observatory has called for the development and rehabilitation of the network to boost the economy and non-oil transportation, highlighting a legal dispute between the government and the Kurdistan Region over the ownership of the railway routes.
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