Work on a £295 million extension of the West Midlands Metro tram network began on Thursday.
Transport Secretary Heidi Alexander “put spades in the ground” to mark the start of work to provide a tram service from Wednesbury to Brierly Hill, the Department for Transport (DfT) said.
The scheme is aimed at providing faster and more reliable transport connections between Dudley and Brierley Hill to Birmingham city centre and the wider region.
The DfT said passengers will benefit from journey time savings of up to 30% compared with taking the bus.
Phase one of the extension – from Wednesbury to Dudley town centre – is already well under way and is scheduled to open in the autumn.
Work on the second phase – extending the line from Dudley to Brierley Hill – started on Thursday and is being funded by the Government.
Ms Alexander said: “Residents in and around the Black Country have been chronically underserved by public transport, limiting access to jobs and opportunities and stunting economic growth.
“We’re turning the tide on poor transport connections in the West Midlands and delivering a transport system that people can rely on, raising living standards across the region.
“The extension of the West Midlands Metro will be transformational and I am delighted to officially mark the start of work today as this Government gets on with supporting local jobs and business while empowering local leaders to deliver our Plan for Change.”
West Midlands mayor Richard Parker, who met Ms Alexander during her visit, said: “Extending the metro further into the Black Country opens up routes for job opportunities, skills and growth, ensuring fast, reliable journeys for everyone across the West Midlands.
“Now that I have secured the funding from Government and we’ve got the approvals needed, the work can start to make this long-awaited project a reality.”