Transport for NSW says Newcastle's private transport operator has found no evidence of the cracking that has affected light rail vehicles in Sydney.
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TfNSW said on Monday that Keolis Downer had inspected the Newcastle light rail fleet after all of six trams inspected on the Inner West Light Rail were found to have cracks.
Both the Inner West and Newcastle light rail use CAF Urbos vehicles made in Spain.
TfNSW said "no cracking issues have been identified" in Newcastle and Keolis Downer would continue monitoring the vehicles as part of routine maintenance.
"This has not affected Newcastle light rail and services are operating as normal," a TfNSW spokesperson said.
Light rail patronage plummeted in Newcastle during the recent COVID-19 lockdown.
Opal data figures from the NSW government show the Newcastle light rail attracted only 13,000 trips in August and 11,000 in September, down from 40,000 and 50,000 in the corresponding months last year.
More than 82,000 passengers used the service in April this year.
The cracking in the Inner West trams has likely put that network out of action for weeks.
Buses have replaced the service, which is operated by Transdev.
The Sydney Morning Herald quoted a TfNSW spokesman saying the cracks had been discovered after the floor of the vehicles was removed.
"They've got a lot of work to do, and they are literally looking at every tram now going through each one of them, stripping out the floors," TfNSW chief operations officer Howard Collins was quoted as saying.
He said the cracks were near what he termed as the vehicles' wheel arches.
Opposition transport spokeswoman Jo Haylen used the episode to argue that the government should have bought trams from an Australian manufacturer.
"This is a damning indictment of the government's poor purchasing decisions on transport infrastructure," Ms Haylen said.