Transport for London has submitted a scoping report to the council for an extension between Wellesley Road and East Croydon on Lansdowne Road and Dingwall Road.
The report states work on a new line could start in 2016 with completion due in 2018 to coincide with the estimated arrival of Westfield and Hammerson.
The proposed line would see trams turn off at George Street, heading down Dingwall Road before turning left into Lansdowne Road and meeting at Wellesley Road. There would also be a new stop in Lansdowne Road.
Its main function would be to provide additional capacity but also allow trams to turn back without needing to travel the entire existing Croydon town centre loop.
Two alternative new lines being considered if the response to these plans is unfavourable. The first would see trams run clockwise from Wellesley Road, down Lansdowne Road and then Dingwall Road instead while the second idea is for trams to turn off Wellesley Road down Sydenham Road and then along Dingwall Road until it meets George Street.
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