Knaggs said the project was about improving safety for pedestrians while maintaining freight efficiency to and from the Lyttelton Port.
"This project will make it easier and safer for people to walk around their community. It will be safer for children to walk to school, and older people will have the time they need to cross.
"The smart technology also means traffic will not get held up if people finish crossing early or decide not to cross. If no-one is waiting or on the crossing, drivers will be able to continue without delay.
"This is a big advantage on roads like this which are used to access the Port."
Along with the new signals, the project will see new tactile paving installed along with new footpaths. The road will also be repaired and improved and a new bus stop will be installed at a safer location adjacent to Fisherman's Wharf restaurant.
Work starts this coming week with it is expected to be completed by the end of April.
Motorists are advised to expect short delays during the work.