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The Tünel was opened in December 1874 to provide an easy ride between the two neighborhoods of Pera and Galata, both in the new district of Istanbul on the hill north of the Golden Horn. Many people used to work in the low Galata, and live uphill in Pera. The Tünel, climbing about 60 meters, saved them this difficult walk.
When it opened, the Tünel was powered by horses. The line began being powered by electricity in 1910. In 1971, the Tünel was renovated and modernized, and the original wooden cars were replaced by metal ones.
Today, the tiny Tünel is rarely useful for most of Istanbul's population - a larger (but separate) metro system is available, and other public transportation options include buses, cabs, and even a cable car.