Construction work to extend the tram to Wolverhampton Railway Station got underway on Monday.
Enabling works began last month and the next stage is to remove the road surface and install drains.
This second phase of the works is expected to be completed in summer 2018 when Pipers Row will reopen.
The Midland Metro Alliance, working on behalf of the West Midlands Combined Authority, is extending the existing tram route just before the current terminus at Wolverhampton St George’s, to the Railway Station.
The work forms part of the wider Wolverhampton Interchange to regenerate the city’s transport hub and provide an attractive gateway to those entering the city by national rail, bus or tram services.
When operational, after the construction of the new Railway Station is complete, trams will serve two additional tram stops; one at the city’s bus station on Pipers Row and one at Wolverhampton Railway Station, allowing people to easily change between other modes of transport.