There is still the road along the seaside and the highway runs up at higher altidue as I recall from about 2002. As you can see from the entrance picture, there was some older tunnel construction.
The railway used to run at the foot of the hill immediately behind the settlement proper. The road followed in a tunnel just inside that. They rerouted the major highway further inland a number of years ago.
I'll have to read up what the actual implemented changes are here as the railway station looks brand new.
Update: really brand new, opened for traffic mid December, 2016. And my oh my was the project expensive. Almost 10
9 USD at current exchange rate. There are 4 tracks (in the station range) so trains can pass at 250 km/hour. The tunnel itself is quite modest by our standards, a mere 12.3 km long. They did *not* recycle the old road tunnel, by the way.
Next time I plan on driving southwards, I'll drop by to have a look myself. Thanks, Werner, for bringing this to our attention.