The Tunnel Hill Walk, also known as the Historic Railway Tunnel Walk, starts on the side of the Southern Scenic Route 5.1 km north of Owaka. The track follows the fence line downhill to a short section of the historic Catlins Railway Line. Follow the obvious path, surrounded by colourful forest regrowth, to the 250-metre tunnel. The light on your phone should be sufficient to walk safely through the tunnel. On the wall at either end, panels provide some of the history of the railway line.
The railway was primarily built to provide timber mills with access to transport and effectively wiped out the dangerous coastal shipping trade. It was built in several sections between 1879 and 1915, ending at Tahakopa. The tunnel was completed in 1896, and the line reached Owaka in 1897. As the wood ran out and the roads improved, the line was phased out, with the final closure in 1971.
Several other reminders of the railway survive, and the Owaka Museum has an excellent overview. You can walk a section of the track from Matai Falls Track for an hour, including a cutting with a series of explanatory panels. There were also 16 stations on the line, some supporting forestry tramways used to extract logs. It is fun touring side roads and watching for railway-style place name signs, including Owaka, Tawanui, Houipapa and Caberfeidh. In the hamlet of Mclennan, the sign is on the side of a surviving station, now located on private land on the east side of the highway.
Tahakopa has the remnant of a railway bridge designed by one of the most famous Catlin residents, Sir Truby King. It was the only bridge privately built to the standard of New Zealand railways and is now part of the Sir Truby King Bridge Walk. Incredibly, it is not mentioned on his Wiki page, but it is remembered in the Catlins!