Construction on the tramway system began in April 1880, designed by Raoul Mesnier du Ponsard, under the direction of Swiss engineer Nikolaus Riggenbach, and financed by Bracarense businessman Manuel Joaquim Gomes, the principal shareholder of the Companhia de Carris of Braga.

[1][2] Gomes was interested in replacing the role of the horsecar (rail vehicles pulled by horses), which originally stretched to the Bom Jesus sanctuary, but was complemented by oxen up the steep hill on busy days.

[1] The funicular is situated in a rural, isolated location surrounded by luxuriant vegetation, paralleling the Bom Jesus do Monte staircase, and connects the base of the hill with the sanctuary.

The base terminal is a rectangular stop, comprising three bodies with the central more elevated than the lateral wings, plastered and painted in white, with corners, cornices and frames in granite.

[1] The upper stop includes lateral, sloping platforms paved in cobbles, with access to the rail line by a double staircase in granite, diverging at the top.