The tram had unloaded all passengers at the Surfers Paradise North station following a medical emergency at the Cavill Avenue Station.

The tram then continued south until its tail jumped the tracks near Ocean Avenue and Surfers Paradise Boulevard, smashing into a light pole.

Witness Alan Jarvie said he noticed the tram changing lines.

“I was watching it sorta start moving, taking off and part of it went off, part of it just slid along the track line,” Jarvie said.

“All of a sudden, it hit that middle wire post and wires come down, a few sparks, not for very long.

“It shut off pretty quickly and then all of a sudden people came from everywhere.”

The driver was taken to hospital as a precaution.

Services north to Helensvale have been restored but south to Broadbeach remains closed, with only buses available as transport.

G:LINK says it is investigating the cause of the derailment and working to identify any damage to the network.