While exploring the city, Gavan ventured from his hotel in Beyoğlu through the steep Yüksek Kaldırım Street towards Karaköy and encountered a dense crowd. This experience sparked an innovative idea in Gavan's mind: an underground elevator.
Initially, Gavan sought support from the French government to realize his idea but faced rejection. He then turned to the British government, which showed interest and provided the backing he needed. With British support, Gavan began planning the construction of an underground elevator near Yüksek Kaldırım in 1869. However, securing permission from the Ottoman Empire was also crucial.
Gavan successfully persuaded Ottoman officials through negotiations, and on November 6, 1869, he received authorization from Sultan Abdülaziz to proceed with the construction of the underground elevator. Working alongside hundreds of laborers, Gavan completed the tunnel in 1874. Initially, Istanbul's residents were skeptical of this new mode of transportation. At that time, horse-drawn carriages were the norm, and the idea of an underground transport system seemed quite unusual.
To help the public adjust to this novel transportation method, Gavan implemented several measures. He introduced a freight car alongside the passenger car to accommodate animals and goods. Additionally, children under the age of five could ride for free, which encouraged more people to use the tunnel. These efforts helped integrate the tunnel into Istanbul's daily life. Originally operated by two steam engines generating 150 horsepower, the tunnel transitioned to electric power in 1911. Until 1911, the tunnel was managed by a British company and later a French company. In 1939, it was acquired by the Republic of Turkey.
Known as the world's second oldest subway, the Tunnel is also recognized as the first underground funicular system. Today, it remains a vital part of Istanbul’s transportation network and is considered one of the city’s iconic landmarks.