Palmerston North has $3.5 billion in the pipeline and the work on SH1 between Ōtaki and Levin is significant.

Mayor Grant Smith welcomed NZTA's announcement it will progress with planning on the new transport corridor between Ōtaki to north of Levin as well as further safety improvements along SH1and 57.

"Our city is already a pivotal logistics hub for the lower North Island and South.

"There is a $3.5 billion pipeline of major investments planned over the next 10 years to enable significant development of this key sector of our economy.

"Transport infrastructure networks are a strategic priority for supporting growth across Manawatū-Whanganui and central New Zealand.

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"As they form one of our key roading connections, ensuring SH1 and 57 are safe and well-functioning is essential for the region and the nation's ongoing development.

"We welcome the Government's commitment to progressing these works, which are an investment in the future of Manawatū-Whanganui, as well as in the safety of all road users."

Mayor Smith said the announcement was welcome in the region following NZTA's announcement last March of the replacement for the Manawatū Gorge Highway north of the city, which included a commitment to progressing the long-planned Regional Ring Road package of works.

"Central Government's investment in strategic transport infrastructure in Manawatū-Whanganui supports our shared vision for strong growth in the region.

"It aligns with our own planned investments to develop Palmerston North and will further contribute to unlocking the economic potential of the whole central and eastern North Island region."