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Work has started on widening the Pacific Highway at Hexham to six lanes as part of a $2.1 billion project to ease traffic congestion between Newcastle and Maitland.
Federal Infrastructure Minister Catherine King said at a media conference in Hexham on Wednesday that the six kilometres of road widening would be completed by 2026 and make a "significant improvement".
"About 50,000 cars using this on a regular basis really will take a significant amount of congestion out of this part of an incredibly important and iconic connection through to the port of Newcastle and Newcastle itself."
Contractors have started installing concrete barriers on sections of the road and reduced the speed limit to 60 kilometres an hour.
The Transport for NSW website says any works on or next to the existing road will occur on weekdays between 7pm and 5am.
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"Lane closures and traffic control will be in place during the night works and may affect travel times," the website says.
"A temporary 40km/h reduced speed limit will be in place through the work zones for the safety of motorists and workers, and there may be short-term intermittent stops."
Ms King said geotechnical work had started on the associated M1 motorway extension to Raymond Terrace, which is scheduled to be completed in 2028.
Port Stephens MP Kate Washington said the road upgrades would help businesses in her electorate.
"Currently we've got local businesses that are travelling into Newcastle to avoid this notorious bottleneck to get onto the M1," she said.
"It will mean people are no longer sitting in back-to-back holiday-maker traffic when they aren't even on holidays."