Sydney George Street Tram Plan - Sydney Morning Herald

One of the current Sydney Light Rail trams Photo: Quentin Jones

More than 50 years after trams last rattled from the city to Randwick, the state government has announced they will ride again.

Work on a $1.6 billion 12-kilometre track linking Circular Quay and Central, George Street, Moore Park and the University of NSW will begin in 2014.

About 40 per cent of George Street, between Bathurst and Hunter Street, will become closed to traffic, only open to pedestrians and trams.

George Street ... 40% will be pedestrian only. Photo: Peter Braig

"This is a once-in-a-generation project to revitalise the centre of Sydney by reducing congestion and offering a fast, attractive public transport option," the Premier, Barry O'Farrell, said.

Transport Minister Gladys Berejiklian said: "Congestion on roads in the Sydney CBD and surrounding areas will only get worse as the number of jobs in the city grows and the population increases - we have to act now and in a significant way."

It is likely that construction of the eastern section of the line, from Central Station to Randwick, will start first.

But the whole line will open at the one time. Construction will take between five and six years after starting in 2014.

The Government had been debating whether to run the trams through the streets of Surry Hills or in an underground tunnel. Ms Berejiklian said it had decided on a street-level option, with trams running down Devonshire Street.

This will save hundreds of millions of dollars, she said, but also had the benefit of providing another street level stop in Surry Hills. People travelling from Randwick to the City would lose a couple of minutes in travel time against the tunnel option.

The section of George Street which will be reduced to traffic. Photo: Google

The government estimates that it will take 24 minutes for passengers to travel from Randwick to Central Station and 15 minutes to get from Central to Circular Quay. It currently takes 30 minutes in peak hour to get from Central to Circular Quay .

The new light rail will be able to carry up to 9000 passengers an hour in each direction.

Bus overhaul

Dusted off ... light rail solution.

The government also announced an overhaul of the city's bus network to reduce the number of peak-hour buses in the CBD.

Bus reforms include improvements to interchanges, more cross-city routes and higher priority for buses. The government estimates this will mean 220 fewer buses enter the city per hour in peak morning traffic. During the busiest two hours of morning traffic, about 1500 buses normally converge on a few narrow and congested corridors in the middle of Sydney.

Airport congestion

The government also unveiled plans to reduce congestion around Sydney Airport, including building an underpass for the rail line at General Holmes Drive, making airport approach roads one way and widening Mill Pond Road.

"The NSW government does not support a second airport in the Sydney basin, which is why we need to ensure the existing asset is being fully utilised," the Premier said.

The projects will cost $300 million and take between three and five years to complete.

Mr O'Farrell and Ms Berejiklian made Thursday's announcement in Castle Hill, the site of an information centre for the north-west-rail-link.

In the announcement they not only released Transport for NSW's final transport masterplan, but also responded to a separate State Infrastructure Strategy written by Infrastructure NSW.

They endorsed Infrastructure NSW's main recommendation, the 33km WestConnex motorway.

But they dismissed its recommendation for an underground bus tunnel in Sydney's CBD to take the place of light rail. The chairman of Infrastructure NSW, Nick Greiner, said putting light rail in the city would only create a problem.

But Mr O'Farrell said on Thursday that the bus tunnel idea would have cost more for not as much benefit.

Randwick was one of the first destinations for Sydney's first tram network, soon after steam-powered trams were first introduced to the City in 1879.

"The first destination was Randwick Racecourse," said Robert Lee, a professor of History at the University of Western Sydney. "This really is history repeating itself."

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