Australian Minister for Cities, Urban Infrastructure and Population Alan Tudge has announced a combined A$730m ($522.55m) package to help cut congestion and improve transport infrastructure in Hobart City in Tasmania.

From the total $522.55m funding, nearly A$486m ($347.89m) will come from the Government of Australia, while nearly A$221m ($158.21m) will be provided by the Tasmanian Government.

As part of the overall package, the Greater Hobart councils will also contribute A$23m ($16.47m) to the ‘Greater Hobart Transport Vision’.

Minister Tudge said this element of the deal would secure a reliable, sustainable and cost-effective transport system.

Tudge said: “Hobart suffers congestion at times, just like other cities. Hobart is also growing and we want to eliminate those local, frustrating pinch-points but also future-proof the wider network for the next generations.

“This is all about reducing congestion so the community can spend more time with family and friends and less time in the car, providing significant civil construction jobs and making it easier for Tasmania’s world-famous industries to get their goods to market.”

“Hobart is also growing and we want to eliminate those local, frustrating pinch-points but also future-proof the wider network for the next generations.”

The main project under the Hobart City Deal is the Bridgewater Bridge replacement, which will be funded by A$461m ($329.90m) from the national government and A$115m ($82.30m) from the Tasmanian local authority.

Remaining projects include a fifth lane for the Southern Outlet, a South East Traffic Package, progressing a Hobart Transit Centre, and establishing a Derwent Ferry Service.

The investment focuses on upgrading and integrating the public transport system, as well as new methods to improve transport flows around and through the CBD, including Macquarie and Davey Streets.

In addition, the Australian Government has agreed to provide additional A$25m ($17.89m) to reduce traffic jams and improve access in and around the city’s north region by creating the Northern Suburbs Transit Corridor.

The A$25m ($17.89m) commitment to the corridor is part of the federal government’s A$1bn nationwide Urban Congestion Fund.

Furthermore, the Tasmanian Government has sanctioned an additional A$20m ($14.31m) to address congestion affecting the Kingborough municipal area.