The long delayed State Highway 1 intersection beside the Timaru Showgrounds on the northern side of the town is set to be upgraded following a significant taxpayer funded investment.

The Government has committed a $2.84 million grant through the Regional Infrastructure Fund to address the bottleneck, which has stalled development and frustrated motorists for years.

Rangitata MP James Meager said the intersection had become a major barrier to Timaru’s progress.

“For too long this stretch of State Highway 1 has been a handbrake on Timaru’s growth. It has been unsafe, inefficient, and embarrassing. Finally, that is going to change,” Meager said.

“This taxpayer investment is not just about traffic lights and lanes. It is about removing a barrier that has stalled development, frustrated locals, and blocked jobs and investment,” he said.

Meager said the unfinished project and surrounding earthworks had become a visible symbol of stagnation.

“This bottleneck has sat here year after year while opportunities piled up behind it, and so did that mountain of dirt. Taxpayers are now helping clear the physical and economic obstacle,” he said.

Associate Minister for Regional Development Mark Patterson said congestion at the intersection had been putting real pressure on residents, businesses, and freight operators.

“This investment will remove a major choke point on State Highway 1, making it easier for families, workers, and freight operators to get where they need to go,” Patterson said.

He said the upgrade would allow the second stage of the Timaru Showgrounds development to proceed, adding about 20000 square metres of commercial space and creating up to 300 long term jobs.

The project will deliver a redesigned intersection with improved traffic flow, upgraded signalling, and safer access for pedestrians and cyclists. Up to 60 people are expected to be employed during construction.

Associate Minister of Transport and Minister for the South Island James Meager said the upgrade was about supporting long term growth.

“Improving the intersection and reducing transport delays will cut costs for businesses, improve reliability for freight, and keep the local economy moving,” he said.

“This is about future proofing Timaru’s transport network, creating jobs, and supporting the region to thrive.”

The total $4.15 million project will be delivered by the national transport agency and is expected to be completed by mid 2026.