The project is aimed at tackling the increasing risk of cross-highway crashes at the busy intersection.
The Australian and Tasmanian Governments have jointly invested in the upgrade, which will improve safety at the key connection point in the Kingborough municipality.
The new intersection will separate the highway from Summerleas Road, which will pass underneath the highway, with dedicated on and off-ramps creating safer access for traffic.
“Cross-highway crashes at the busy intersection have been steadily increasing over recent years. This project will prevent the need for traffic to cross over the highway, giving motorists a safer, smoother ride through the area. I know that this important project has been championed for a long time by Senator Eric Abetz who lives in the local community,” said Federal Minister for Infrastructure and Transport Darren Chester in a statement.
Construction is being undertaken by a joint venture between Tasmanian firm’s VEC and Shaw.
The upgrade is scheduled for completion in mid-2018.