The ring road aims to cut travel times and improve safety by taking trucks off local roads.
The project is estimated to cost $1 billion and is subject to the Queensland Government agreeing to pay the additional $200 million.
Prime Minister Scott Morrison said the project was part of the Federal Government’s plan for a stronger economy and record investments in infrastructure.
“The Ring Road will keep Rockhampton moving,” Mr Morrison said.
“We want to tackle congestion to make life easier for commuters and better connect local farmers and businesses with their customers.”
Deputy Prime Minister and Minister for Infrastructure, Transport and Regional Development Michael McCormack said the Rockhampton project was another example of targeted local infrastructure delivery which meets the strategic wants and needs of local communities.
“The Rockhampton Ring Road will improve flood immunity and deliver a new crossing across the Fitzroy River which will ensure the road stays open for longer during severe wet weather to keep communities and emergency services connected,” Mr McCormack said.
“For the community, this all translates to fewer closures, reduced congestion and less time spent stuck in traffic.
“For freight vehicles, it means avoiding economic losses by keeping goods moving when previously they had to wait for floodwaters to subside.”
Federal Member for Capricornia Michelle Landry said the Ring Road investment was on top of the $52 million the Federal Government had committed to planning and corridor preservation works undertaken in partnership with the Queensland Government.
“The plan and preserve project is examining all the necessary details in terms of project scope, so the Ring Road is a key initiative we have been preparing for,” Ms Landry said.