CIE has yielded to pressure from business interests in the Inchicore area of Dublin by agreeing to reroute the proposed Luas light rail line through Davitt Road and the grounds of St James's Hospital.
But the Luas project team has also decided to maintain the original route for the Tallaght Dundrum line between Heuston Station and the city centre, which would involve demolishing Arran Quay Terrace, off Smithfield.
The decision to change the route in the Inchicore/Kilmainham area came after "intense public consultation", which included over 27 meetings with local residents, business groups and public representatives.
A discussion document on alternative route options was also published as part of this exercise. There were also talks with the board of management of St James's Hospital to see if the Luas could run through its grounds.
Under the original proposal, the route would have followed Tyrconnell Road, Emmet Road, Old Kilmainham, Mount Brown and James's Street. The new route is via Davitt Road, James's Walk, Suir Bridge and the hospital.
According to a spokesman, the new route would offer a modern public transport system to the 2.5 million people who pass through the hospital every year. However, CIE decided to maintain the original route north of the Liffey "after long and in depth analysis of alternative options".
The consultation process included publication of a discussion document last summer illustrating alternative options. But the decision will dismay residents of Arran Quay Terrace whose homes are threatened with demolitionr.
