Trams are useful in cities to transport many passengers, tram rails are used like normal rails but they can be on roads.
The building process is the same as other ways, you can build on roads or directly on the ground.Don't forget to electrify tram rails : indeed all trams (or at least most of them) are electric. If the tram rail is on a road, use bus stops, if it's on the ground, use train stations :Signals are the same as train ones, use train signals on tram rails.
To make a tram move on bridges in tunnels you can build the rail on a road bridge or in a road tunnel or use directly bridge and tunnels of trains :
Trams can move on train's rails and reciprocally but don't abuse of this function.
Next tutorial : Transport basics