Driver training is taking place using more than a dozen trams along the line from Randwick to Circular Quay,which is due toopen to passengers in early December.
Transport for NSW's coordinator general Marg Prendergast said testing had shown there had been an increase in cases of poor pedestrian behaviour and vehicles blocking intersections as more of the 67-metre long tram sets ran along the line.
"We are seeing a few near misses. We don’t want to see a tragedy for the sake of being distracted by your mobile or trying to beat the tram at an intersection,"she said.
Ms Prendergast warned further increases in the frequency of trams for the timetable simulation from mid-November raised the potential for crashes.
"Because we have had roads closed[for construction],we have had behaviours develop where people just don't expect anything to be running. We need people to realise that it is real,and you have to look both ways,"she said.
The most common incidents are pedestrians stepping in front of trams – and in some cases people walking into the side of them – and cars blocking intersections,preventing trams from crossing.