Australia and Victoria governments have agreed to upgrade the Princes Highway in East Gippsland with an equal investment of A$50m ($38.7m). 

Upgrade works include the addition of a new overtaking lane, as well as the installation of safety barriers along the highway.

The road upgrade is expected to improve the connectivity from Gippsland to the north of the border, including the Port of Eden and Canberra.

Federal Minister for Infrastructure and Transport Darren Chester said: “The improvements will address safety risks in the Nicholson and Lakes Entrance areas by improving intersections and providing a new rest area at the Jemmy’s Point lookout.

“It will also make The Esplanade in Lakes Entrance safer for pedestrians and road users.

"The improvements will address safety risks in the Nicholson and Lakes Entrance areas by improving intersections."

“With the addition of a new roundabout in Cann River, the Princes Highway in far East Gippsland will be made safer for B-double trucks, allowing for the efficient movement of local horticulture, seafood and forestry products.”

Victorian Minister for Roads and Road Safety Luke Donnellan said that the Princes Highway is one of the key freight corridor and serves as the major route for tourist traffic through Gippsland and southern New South Wales (NSW).

Donnellan said: “These upgrades will deliver a significant safety boost for drivers along the highway, particularly around Lakes Entrance, with a new overtaking lane east of Genoa, and new safety barriers at high-risk locations.

"The upgrade will fix many dangerous sections of the highway in far East Gippsland, where there are steep drop-offs and sharp curves that make it difficult for motorists to overtake safely, increasing the risk of run-off-road and head-on crashes."