The $230 million project involves the construction of 14km of dual carriageway from north of Barrys Creek Rd to the Kempsey Bypass.

It is scheduled to be completed in 2017.

When combined with the Oxley Highway-Port Macquarie to Kundabung upgrade, it will generate about 1000 direct jobs and nearly 3000 indirect jobs throughout the region over the next three years.

Work on the companion $820 million Port Macquarie to Kundabung section of the Pacific Hwy began last month.

The federal member for Lyne David Gillespie and NSW member for Oxley Andrew Stoner were onsite turn the first sod on this important project which is jointly funded by the Australian and NSW governments.

Federal Assistant Employment Minister and Member for Cowper Luke Hartsuyker said highway works continued to escalate between Port Macquarie and Coffs Harbour.

“This is another key development in completing the duplication of the highway by 2020. 

The current works schedule is unprecedented and creating thousands of local jobs during construction,” Mr Hartsuyker said.

Mr Stoner said the highway upgrade was a win for travellers and the transport industry.

“The upgrade will significantly enhance safety and reduce travel times for motorists and heavy vehicles which use this route,’ he said.