NSW Transport Minister Andrew Constance on Friday remotely opened the final section of the line from Anzac Parade to Kingsford in the city's eastern suburbs.

Services started operating from 5am.

The milestone marks the completion of the 12-kilometre $2.9 billion project some four months after trams started running between Circular Quay and Randwick.

Mr Constance says residents now have a sustainable public transport system connecting them to the city.

Patronage is expected to be low given the COVID-19 restrictions but the minister hopes the new line will help staff travelling to and from the Randwick health precinct.

"In the current environment our focus is ensuring essential travel options are available," he said in a statement.

The trams will operate between 5am and 1am with services every four to eight minutes in the CBD and every eight to 12 minutes in the southeast.

The Sydney Business Chamber says the final section of the light rail will provide a valuable service to essential frontline health workers.

"It will provide safe, late-night transport for many shift workers who are keeping the city running during the crisis," executive director Katherine O'Regan said in a statement.

"The COVID-19 pandemic means the finally completed CBD light rail won't be full of commuters as most are working from home now, but many will rely on it for essential trips to do the shopping and attend medical appointments."

Australian Associated Press