"The new bypass will help address this problem with the introduction of a new north-bound passing lane.''
A roundabout towards the southern end of the bypass would allow the highway to remain at 100kmh, and connect to Edendale and the Fonterra dairy factory.
"This is one of the largest highway projects seen in Southland for many years.''
Support from Fonterra and the local community had been excellent, Mr Forbes said.
"Their input into the project design has been invaluable and helped with the final design of the bypass.
"It is important that the realignment meets the needs of the Edendale community and the local dairy factory.''
He said strong growth in dairy and expansions at the Fonterra site meant there were a lot more milk tanker movements on the busy section of SH1.
Moving highway traffic away from the present location would improve safety and bring considerable environmental benefits to the Edendale community, such as less traffic noise and fewer vehicle emissions.
The new 2.6km bypass would carry more than 5000 vehicles a day and take about two years to build, he said.