It takes passengers by road and rail (7)
I believe the answer is:
tramcar
This clue might be a double definition.
'it takes passengers by road' is the first definition.
The definition suggests a singular noun which matches the answer.
'rail' is the second definition.
The answer and definition can be both man-made objects as well as being singular nouns.
Maybe they are linked in a way I don't understand?
'and' acts as a link.
Can you help me to learn more?
(Other definitions for tramcar that I've seen before include "Electric transport" , "Electrical vehicle" , "Electrically driven public transport vehicle" , "Passenger vehicle running on rails" , "Public street transport on rails" .)