Plans to extend Edinburgh's tram network have moved forward after the Transport and Environment Committee approved the Strategic Business Case (SBC) on Thursday 10 September for a new route running from Granton in the north to the Edinburgh Bioquarter in the south.

The immediate focus will be on the southern portion of the corridor as phase one, with councillors also stressing the need to progress work on a future phase linking Granton to the city centre.

The next stage will see the plans positioned within the findings of SEStransit, a regional transport study for South East Scotland, which is due to report in autumn next year.

This programme will also be coordinated with the ongoing feasibility study by Transport Scotland and Network Rail into the potential reintroduction of passenger services on the South Suburban Railway line.

Advisory work on funding and financing options with the National Wealth Fund (NWF) will continue in parallel. In addition, a wider benefits realisation study for Trams to Newhaven is expected to be considered later this year.

Transport and Environment Convener, Councillor Stephen Jenkinson, said: "This is a key milestone in our ambition to expand Edinburgh's tram network.

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"Let's not forget why we're developing these plans. Edinburgh is the fastest growing city in Scotland, growing at twice the rate of Glasgow, in the fastest growing region in the country. Whilst this trend brings exciting opportunities, inward investment, and economic growth, it also presents real challenges on housing, education, and of course on our transport infrastructure. Doing nothing in the face of these significant issues is simply not an option.

"From our groundbreaking £1.3 billion development at Granton Waterfront, through to the city centre, our world-famous universities, cultural hubs, brilliant local businesses, new housing developments, hospitals and beyond – our overarching vision remains to effectively link the whole of Edinburgh, and the wider region, for the benefit of all.

"We only need to look at the success of the existing route and, in particular, Trams to Newhaven, and the new lease of life that this connection has breathed into communities across Leith and the north of the city, to see the potential. Whilst we're prioritising the southern section of the planned expansion, I'm clear that the whole city should ultimately enjoy the many benefits of a truly integrated public transport system.

"One of the key questions around this project is rightly on funding. To progress not only to the next phase of the business case but potential future construction costs, we need to demonstrate clearly how our plans will positively impact our region and Scotland as a whole. While I'm in no doubt that this is the case, it makes good sense to wait for the wider SEStransit study to conclude next year.

"To be clear, this is one of the most ambitious and forward-thinking schemes in the country and represents huge potential benefits not only for Edinburgh, but regionally and nationally.

"My focus remains on making the positive case for Edinburgh's future and ensuring that we're ready to meet the challenges ahead. We need to be bold and create a better, more sustainable and connected city, rather than putting our heads in the sand and hoping for the best."