Early works begin on Rockhampton Ring Road project as State and Federal governments reach funding agreement

This comes after a $700 million cost blowout halted the key central Queensland project from going ahead in January 2023.

Originally, tender quotes for the Ring Road project were $700 million higher than the original $1.065 billion budgeted for the project.

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Central Queensland businesses, who were set to benefit from the project, took their campaign and convoy to Parliament House in Canberra last month, advocating for the federal government to fund the project.

The first phase of construction for the Rockhampton Ring Road will start in 2023, with early works currently underway.

Federal Minister for Infrastructure, Transport, Regional Development and Local Government Catherine King said the agreement will see a $280 million package of construction works kick-off next year, including the upgrading of several connecting roads.

"We've always been committed to this project, and that's why we kept funding in the forward estimates for it," Ms Kind said.

"I'm pleased to say we've reached a new funding agreement between the Queensland and federal governments to get the project underway."

This will include upgrades to Boundary Road, McLaughlin Street, Monier Road Overpass and the Rockhampton-Yeppoon Road intersection.

It will also provide a connection for the future project to West Rockhampton, which will include an upgrade to Lion Creek Bridge plus connections to local roads.

Queensland Minister for Transport and Main Roads Mark Bailey said the large package of works represent the start of a new construction phase for the project.

"Both the state and federal governments remain committed to the project and this new agreement is a very clear sign of that," Mr Bailey said.

"I'd like to once against acknowledge the work Barry and Brittany have been doing behind the scenes to get work going on this project, our new plans wouldn't be anywhere near as advanced as they are without their advocacy and hard work."

Rockhampton-local MP Barry O'Rourke welcomed the new agreement between the state and federal governments.

"I haven't stopped fighting to bring the start date for major construction forward," Mr O"Rourke said.

"It'll be a great sight to see these huge power poles going up in the corridor today, where the Rockhampton Ring Road will be built.

"Starting these major utilities works now means that we can get on with the job faster.

"I want to see this project support as many local workers and contractors as possible, and this new agreement secures that."

Keppel MP Brittany Lauga said early works are key to the Rockhampton Ring Road project.

"The Palaszczuk Government is funding the early works which get underway today and will continue into next year," Ms Lauga said.

"The works are part of a huge infrastructure pipeline in Central Queensland, which includes the $80 million Rockhampton - Yeppoon Road upgrade, and the $19 million upgrade of Rockhampton - Emu Park Road, with construction on both projects just around the corner."

"This means there is work on the way for our local contractors, and suppliers, and the project will be supporting jobs over the next 12 months."

Capricornia Federal MP Michelle Landry, Flynn MP Colin Boyce, and Senator Matthew Canavan have also welcomed the announcement.

Ms Landry attributed the project has been revived on the back of the massive coal royalties surplus.

"I am encouraged that both the Federal and State Labor Governments have made the decision to reinvest the funding from the coal royalties windfall back into the region that generated it," she said.

"However, we would like a full funding schedule laid out, as there is a lack of detail around the announcement made by the Premier yesterday.

"The Rockhampton Ring Road was a project we never should have had to fight for, the funding for such a vital infrastructure project should never have been delayed in the first place."

Mr Boyce said the Ring Road will support the region's economy by improving freight efficiency, flood resilience and the capacity of the Bruce Highway, as well as improving road safety.