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.
"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."
About 40 per cent of George Street, between Bathurst and Hunter Street, will become a pedestrian-only zone.
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. The project will take up to five to six years to complete.
Bus overhaul
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.
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."
