Although the original company was put into liquidation in 1901 due to financial losses, operation of the funicular passed to the AMT of Genoa, which at the time was called UITE (Unione Italiana Tramways Elettrici).
The Principe-Granarolo railway, also known as a funicular or tramway due to its construction characteristics, is a rack railway connecting the railway station of Genoa Piazza Principe to the heights of Granarolo. Managed by AMT as a special facility, the railway was granted in 1896 to the Società Anonima Genovese per le ferrovie di Montagna. It was built between 1898 and 1900, entering into service on 1 January 1901. The main purpose of the railway was to make the hilly terrain around Granarolo more profitable.
The railway's history has been troubled. The inauguration, originally planned for 1899, was postponed to 1901 due to an accident during the test run. Over the years, there were changes of management and the railway underwent various modifications and renovations. In 1922, the line was sold to the Municipality of Genoa and in 1923 it passed to the Consorzio Nazionale Cooperative Combattenti. Over time, new stations were opened and modernisation work was carried out.
In 1965, the management of the system was entrusted to AMT (Azienda Mobilità e Trasporti). Over the years, the railway has undergone various maintenance, renovation and modernisation works. In March 2011, major consolidation and modernisation work was carried out on the line, including the replacement of the rack and pinion. In 2012, the railway reopened on its entire route, including the renovated and new stations. In the following years, further maintenance and improvement work was carried out.
Currently, both railway cars run regular services on the line. The Principe-Granarolo railway has become a symbol of Genoa and was used as a film set during the filming of a police TV series entitled 'Blanca' set in the city.