Govt Funding to Ease SH1 Bottlenecks and Unlock Major Timaru Development

Associate Regional Development Minister Mark Patterson said the funding will remove a long-standing bottleneck that has been placing growing pressure on residents, commuters and businesses.

The Government has announced a $2.84 million investment through the Regional Infrastructure Fund to address congestion on State Highway 1 in Timaru, a move aimed at improving transport efficiency, unlocking commercial development and creating hundreds of jobs in the region.

Associate Regional Development Minister Mark Patterson said the funding will remove a long-standing bottleneck that has been placing growing pressure on residents, commuters and businesses. Congestion at the intersection has slowed daily travel, disrupted freight movements and constrained the flow of people and goods through one of South Canterbury’s most important transport corridors.

Mr Patterson said the upgrade will significantly improve traffic flow on State Highway 1, making it easier and safer for families, workers and freight operators to move through the area.

The project is also a key enabler for the second stage of the Timaru Showgrounds development, which has been unable to proceed due to existing transport constraints. Once underway, the next stage is expected to deliver around 20,000 square metres of new commercial space and support up to 300 long-term jobs, providing a substantial boost to Timaru’s economy.

The intersection upgrade will include a redesigned layout to improve traffic efficiency, upgraded traffic signals, and safer access for pedestrians and cyclists. Construction is expected to generate employment for up to 60 people, providing an immediate economic lift alongside the longer-term benefits.

Associate Transport and South Island Minister James Meager said reducing congestion and improving reliability on State Highway 1 will have a direct impact on business costs and freight efficiency.

He said cutting transport delays will improve certainty for freight operators, reduce inefficiencies for local businesses and help keep the regional economy moving. The investment is part of a broader effort to future-proof transport infrastructure in the South Island, ensuring growing regional centres like Timaru can support increased economic activity.

The total cost of the project is $4.15 million and it will be delivered by NZ Transport Agency Waka Kotahi. Construction is expected to be completed by mid-2026.

The Government says the investment reflects its focus on practical infrastructure projects that remove barriers to growth, support regional development and deliver lasting benefits for communities across New Zealand.