The South Australian Labor government has promised another tram extension, this time to North Adelaide, if returned at the March election.

The $259 million project follows the promise of tram line to suburban Norwood at a cost of $279 million.

Both projects will be funded from the $2 billion infrastructure fund announced by Premier Jay Weatherill at the party’s election campaign launch just over a week ago.

Mr Weatherill said the North Adelaide line would support about 133 construction jobs and take about two years to finish, similar numbers to the Norwood project.

The new line would service Adelaide Oval and return trams to North Adelaide for the first time in more than 60 years.

“This is a vision for a smart city. A city which moves people around in an effective way and that attracts people to it,” the premier told reporters on Monday.

“That creates jobs and prosperity for South Australians.”

Opposition Leader Steven Marshall opposed the Norwood line, saying it would destroy the “ambience” of area.

But he said the North Adelaide proposal had more to offer.

“We think there is much more logic to take the tram at least up to the Adelaide Oval,” he said.

Lord Mayor Martin Haese said the tram would bring benefits to small businesses in North Adelaide and would give local residents better access to city.