The Australian Government has selected infrastructure construction and engineering company Seymour Whyte as the contractor for the $200m Townsville Ring Road project.

Australian Deputy Prime Minister and Infrastructure and Regional Development Minister Warren Truss said: "The Australian Government’s commitment of $160m towards the project will see uninterrupted traffic flow from the north of Townsville to the south. Motorists and the local community will benefit from a safer and more efficient road network, while freight operators will enjoy reduced business costs."

"The Australian Government’s commitment of $160m towards the project will see uninterrupted traffic flow from the north of Townsville to the south."

The project will see the construction of a new 11km four lane road link, new bridges over Saunders and Stony Creeks, as well as new pedestrian and cycling facilities.

The project is also set to offer a boost for local industry, and requires locally sourced materials and services, injecting vital funds into the local economy.

With construction slated to begin in early 2015, the project is set to complete by mid-2017.

Mundingburra member David Crisafulli said: "We are a strong team with a strong plan to provide better planning and better infrastructure for all Queenslanders and that is we fought to ensure that both stages of the project were completed.

"By working closely with the private sector we’ve been able to deliver the innovation that ensures we are able to deliver more for the available funding."

The Townsville Ring Road will be built in four stages with the first three stages built as a two-laned main road.