Major construction has started on the Caloundra Transport Corridor Upgrade, moving a long-planned 1.6-kilometre road connection into delivery after SEE Civil secured the construction contract.
Works are now underway on both the Omrah Avenue–Arthur Street section and the Nicklin Way–Third Avenue extension, creating a new alternative route into Caloundra’s CBD and reducing pressure on existing congestion points.
The project is jointly funded by the Queensland Government and Sunshine Coast Council, with construction expected to continue through to mid-2028.
A growth-corridor project enters delivery
Caloundra’s population, tourism activity and residential development have increased pressure on the existing road network. The new corridor is designed to redistribute traffic and improve access into the CBD rather than simply widen an existing arterial.
The project includes a new signalised intersection on Nicklin Way, the Third Avenue extension, pedestrian infrastructure, a separated two-way cycle track, lighting and landscaping.
SEE Civil’s appointment puts the scheme into its main delivery phase after years of planning, design and environmental approvals.
Construction supports a wider congestion program
The corridor is the first major project under the Queensland Government’s broader Caloundra Congestion Busting Plan.
Additional planning and design work is progressing on other local intersections and future road links, which could create follow-on opportunities for civil contractors and suppliers across the Sunshine Coast.
Sunshine Coast Council estimates the current project will support around 360 jobs during delivery.
Supplier demand spans more than roadworks
The package creates work across earthworks, pavements, drainage, signals, utilities, active transport, landscaping and traffic management.
Because construction is taking place within an established urban area, staging and maintaining access will be significant parts of delivery.
The project’s progression is also a reminder that regional infrastructure pipelines are increasingly being built around growth management rather than headline megaprojects alone. For contractors, these mid-sized corridor upgrades can generate steady multi-year demand across multiple disciplines.
Sources: Sunshine Coast Council, 30 September 2026; Queensland Department of Transport and Main Roads.
Featured image: Chris Gresham-Britt / Unsplash.

