The Australian and Northern Territory Governments have started the Port Keats Road upgrade to improve infrastructure and reduce the impact of flooding on the Moyle Floodplain.

The tender for the construction project has been awarded to locally based Northern Territory company Allan King and Sons Construction on 14 October.

Australia’s Assistant Minister for infrastructure and regional development Jamie Briggs said that two locations on the road would be upgraded to increase the region’s economic capacity and to reduce the effects of flooding.

"The new road alignment, which will eliminate dangerous tight bends and the sealing of floodways, will improve safety and reduce road closure times."

The construction work is expected to be finished by late 2015.

Briggs said: "Some sections of road are in poor condition with access often limited and load restrictions in place during the wet season, which impacts on local business performance and stifles economic growth."

"This project is an important part of our record $602m investment in world-class infrastructure to create jobs and build a stronger and more prosperous Northern Territory.

"The Australian Government is investing $18m in this project and the Northern Territory government a further $2m."

Northern Territory minister for transport Peter Styles said that the project would see the building of a new 3km-long section of road. It will also include an upgrade of 18km on the Moyle Floodplain to raise it above the inundated areas.

"The new road alignment, which will eliminate dangerous tight bends and the sealing of floodways, will improve safety and reduce road closure times," added Styles.

"During construction, there will be some speed restrictions and detours so it is important for road users to be aware for safety reasons."