Three bidders have been shortlisted by the Australian Government for the Gateway Upgrade North project, which will improve traffic between Nudgee and Deagon.

Deputy prime minister and minister for infrastructure and regional development Warren Truss announced that three bidders will progress to the final stages of the project that will see investments of more than $1bn.

Truss said: "What will now follow is a competitive and interactive evaluation process, which will lead to the selection of the successful tenderer by mid-2015.

"What will now follow is a competitive and interactive evaluation process, which will lead to the selection of the successful tenderer by mid-2015."

"This tendering process has been designed to ensure the best value for money and the most innovative solutions for the upgrade, which will involve widening 11.3km of motorway from four to six lanes between Nudgee and Bracken Ridge."

Apart from this, the project would also include an upgrade of the Nudgee Interchange and widening of the Deagon Deviation to two lanes in each direction.

The government will be investing close to $929.6m in the Gateway Upgrade North project. The project will be carried out in collaboration with the Queensland government that will invest approximately $232.4m.

Queensland minister for transport and main roads Scott Emerson said: "The early works package, currently being undertaken by Fulton Hogan, is preparing the ground for the full upgrade.

"Transurban Queensland has been engaged to manage the delivery of the major works package for the project on behalf of the Queensland government. This project will not only improve journey times for motorists, but also improve freight efficiency along the National Network."

The plan for the project had been released by Truss and Emerson on 1 October 2013 and will also include construction of off-road cycle/pedestrian facilities and the installation of intelligent transport systems such as variable speed limit signs, variable messaging signs, traffic monitoring cameras and ramp metering.