That thing is scary. If a boat on an uphill tunnel doesn't keep moving forward to keep up with the rising water, the boat is forced against the top of the tunnel and everybody drowns.
You can probably put a catenary with wheels on top of your boat and alongside to forward sides to ensure pushing it against the roof pushes your boat forward.
It's for freight, though, and if I understand it correctly, the force of the upward movement is automatically converted to horizontal movement by the pulley/rail system. So there's potentially no need for anyone to be on the boat as it transits the tunnel.
Not that that this looks practical - the tunnels would be huge, just for starters.
Not that huge. This thing seems to have been scaled for narrowboats, like the old British canal system. Those have some tunnels, just barely big enough for the boats.
Here's the longest canal tunnel in the UK.[1]
That was built in 1803. The project in the article was proposed in 1907, which was way late to be getting into narrowboat canals. Railroads, both ordinary and cogwheel, were working just fine in Swizerland by then.