Construction works have commenced on the M1 Pacific Motorway extension, valued at A$2.1bn ($1.39bn), to Raymond Terrace in Australia. 

The extension is being jointly funded by the Australian and New South Wales (NSW) governments. 

The Australian national government is contributing A$1.68bn while the NSW state government is investing A$420m.

Australia's Prime Minister Anthony Albanese said: “It’s so exciting to stand alongside the NSW Government and see shovels in the ground for a project which will be a huge benefit to travellers and truck drivers, but also to Hunter Valley families.  

“This upgrade will mean quicker travel times between Sydney and Brisbane, but most importantly - safer travel for families and workers who use this route going up and down the east coast.” 

The project will extend the motorway by 15km, eliminating five sets of traffic lights and potentially reducing travel time by nine minutes during peak hours.  

The extension includes a 2.6km viaduct over the Hunter River and floodplain, New England Highway, and Main North Line. 

Additional infrastructure improvements comprise new bridge crossings over local waterways at Tarro and Raymond Terrace, as well as an overpass for Masonite Road at Heatherbrae.  

NSW Regional Transport and Roads Minister Jenny Aitchison said: “This will provide a welcome boost to the economy by supporting up to 2,700 direct and indirect jobs during construction and will transform the way people move to and from and through the Hunter [River].” 

The M1 extension is anticipated to open to traffic in 2028.