Minister for Transport Martin Cullen today approved an application by the Railway Procurement Agency (RPA) to extend the Luas Red line from its existing terminus at Connolly Station to the Point in Dublin's Docklands.
The 1.5 kilometre double-track extension will have four stops - George's Dock, Mayor Square, Spencer Dock and the Point - and is scheduled to be completed by 2009.
Mr Cullen said employment in the area served by the existing Tallaght to Connolly line is forecast to increase by almost 50 per cent.
"The population is forecast to more than double, resulting in an increased demand for public transport," he said. "By then, this extension is expected to add over two million new Luas trips per annum and will remove over one million vehicle trips from the streets."
In August, Mr Cullen approved a 7.5-kilometre extension of the Luas Green Line from Sandyford to Cherrywood in south Co Dublin.