At least three people died and 20 people were left injured after Lisbon’s famous Gloria Funicular derailed, according to local media.
Police, paramedics and firefighters have rushed to the scene.
One of the two cars permanently attached to opposite ends of a haulage cable, looped over a pulley at the upper end of the track, is said to have fallen “from a great height.”
The funicular railway line, is one of three of its kind in Lisbon and is well used by tourists.
It connects the lower part of Lisbon to its Bairro Alto, more specifically Praça dos Restauradores to the Sao Pedro de Alcantara viewpoint.
It was opened in 1885 as the second of its kind in the city. Although it was only electrified in 1915, it still retains its original characteristics.
Footage from the scene show scenes of panic, with bystanders crowding round one of the cars with smoke coming from it and behind it a twisted mangle of metal where another car or part of the same structure has come off the rail and broken into several parts.
There are unconfirmed reports several people are still trapped.
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