Almost 29 million passengers journeys were made on Dublin's two Luas lines this year, Minister for Transport Noel Dempsey said yesterday.
This figure is an increase of nearly three million passenger journeys on the 2006 figures, and seven million on figures for 2005.
However, the Railway Procurement Agency (RPA) has acknowledged that overcrowding at peak times is a problem on Luas, and fares have been amended to make it marginally cheaper to travel at off-peak times.
The RPA has also begun a process of bringing all their trams up to a 40-metre length and is currently investigating similar trams which have been manufactured at up to 52 metres long.
This process is set to continue in 2008.
There is concern at the effect of the Cherrywood extension will have on overcrowding, when it is opened in 2010.
The Railway Procurement Agency has said it will continue to initiate trams from Sandyford to Dublin at morning peak times, but critics have pointed out that these trams are full by the time they reach Dundrum. Trams which would start at Cherrywood are likely to be full long before they reach Sandyford.
In a statement issued yesterday Mr Dempsey said it was "proof that if you make reliable, top quality public transport available to the public then it will be used".
Chief executive of the RPA Frank Allen said he was delighted by the figures.
He said the RPA was "working hard to deliver the planned new Luas and metro services under Transport 21, and we hope to see more tram extensions coming on line and the commencement of services to Citywest and the Docklands over the next 36 months".
The announcement of the figures came as it emerged that consortiums bidding for the Metro North have cautioned that capacity may be a significant issue for the proposed underground.
According to senior transport sources both the department and the RPA have been told that significant development and future growth proposed along the metro north route means expected usage levels of 34 million passenger journeys a year could be exceeded very quickly.
Consortiums have urged the RPA to design the underground in such a way that wider trains, as well as longer ones, may be used.
The option of using wider trains would require a slightly wider tunnel than currently envisaged, it is understood.
