Raymond Terrace M1 extension at Hexham wins state, federal approval to begin works

The $2.1 billion extension through to Raymond Terrace has won both federal and state government approval. When complete it will offer a 15-kilometre thoroughfare connecting Black Hill to Raymond Terrace.

It also includes a 2.6-kilometre bridge over the New England Highway and Hunter river.

"The M1 Pacific Motorway extension to Raymond Terrace will be a key link in this vital piece of the nation's infrastructure," federal Infrastructure, Transport, Regional Development and Local Government Minister Catherine King said.

"Demand on the road network in this area is only expected to increase as local populations grow. We know that extending the M1 will provide improved traffic flow and increased connectivity.

Hunter Business chief executive Bob Hawes has previously said the major link would have particular benefits for the transport and logistics businesses clustering around Tomago, Beresfield, Thornton and Cameron Park.

"The benefits of the project will improve connectivity to the region's global gateways of the airport and port and the economic benefits that flow from this will extend beyond the region," Mr Hawes said.

The federal government is pouring in $1.68 billion, which the state is augmenting with $420 million.

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NSW Regional Transport and Roads Minister Sam Farraway said the project was significant for state and national coffers as well as Hunter communities.

"This project is also set to create better access for key employment areas and support freight servicing the Hunter Valley mining industry, the Port of Newcastle and interstate freight - meaning it will have local, regional and national economic benefits," he said.

"We now have the official planning approval to get on with the job of delivering one of the biggest infrastructure projects the Hunter region has ever seen to make daily life easier for families, businesses and truckies."

Preparations for the M1 extension forced longstanding Heatherbrae business Sandy's, which had operated for 70 years on a site sold to the state government in 2012, to shut up shop in anticipation of work beginning.

In addition to connecting the Pacific and M1 freeways, the project also includes widening along the Hexham straight through the Pacific Highway and Maitland Road to three lanes in each direction between the Sandgate bypass and the Hexham bridge.

The extension will bypass five sets of traffic lights and is mooted to remove about 25,000 vehicles a day from congestion points between Maitland and Newcastle.

Paterson MP Meryl Swanson said the project had been a focus since she was first elected seven years ago.

"This is an exciting step forward in this project, which is the last remaining bottleneck on the Pacific Highway between Sydney and Brisbane - and even better that it's happened ahead of schedule," she said.

"I know Hunter locals who frequently travel between Maitland and Newcastle are very much looking forward to this extension, making for a safer and faster journey."

Contractors have been appointed for both the southern and northern sections of the project.

Traffic is expected to hit the extension in mid-2028, weather permitting.

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