Some work has been carried out on the harbour arterial route, but more complex adjustments are to come and construction to make those happen is expected to start next year.
Proposed changes include removing car parks in Strathallan St, adding a median wire barrier in Thomas Burns St, and a series of no-right turns, and installing three roundabouts in the area nearby.
Dunedin City Council transport group manager Jeanine Benson said the harbour arterial project would provide a safe and efficient alternative traffic route, connecting State Highway 1 at Andersons Bay to State Highway 88 at the intersection of Frederick St.
This would allow heavy and general traffic to bypass the central city and avoid disruption caused by construction of the new Dunedin Hospital, she said.
About 16,600 vehicles a day use the route.
"The focus of this project is to improve the entire route so that vehicles can move through the city in the most efficient way without creating more congestion, especially around the new hospital site," Ms Benson said.
The four-stage project has been estimated to cost $16.3 million and is being partly funded by Waka Kotahi NZ Transport Agency.
Stage 1 is almost completed.
"To create a successful bypass, some changes are needed to the existing road layout and there are some aspects of the project we are seeking public feedback on," Ms Benson said.
"We have been in contact with affected businesses and they have given us some valuable information that we have incorporated into our plans."
The council is seeking feedback about the second and third stages of the project.
Stage 2 will include the wire barrier, preventing vehicles from turning right from Thomas Burns St into Willis, Cresswell and Bombay Sts.
Traffic from Cresswell and Bombay Sts will access Thomas Burns St by turning left only.
Fifteen car parks will be removed from Thomas Burns St to enable the southbound lane to run closer to the kerb and six new unrestricted car parks will be created in Tewsley St.
Two roundabouts will be installed in Tewsley St, at the intersections with Willis and Cresswell Sts, to assist traffic flow in the industrial area.
Stage 3 will result in all car parks being removed from both sides of Strathallan St and there will be no right turn from there into Portsmouth Dr.
A roundabout will be constructed at the intersection of Otaki and Orari Sts.
Feedback on the second and third stages closes on September 5.
It is intended the fourth stage will involve upgrading intersections from the Dunedin Railway Station footbridge to Frederick St through Ward St and the Ward St railway overbridge.
As part of stage 2, the council proposes banning vehicles from exiting from Willis and Fryatt Sts into Thomas Burns St.
The council has received feedback from businesses indicating a desire to keep Fryatt St a two-way street and retaining a left turn from there into Wharf St.
The council is looking into this alternative proposal and, if it goes ahead, a reduction in the speed limit on the arterial route from 60kmh to 50kmh will be needed.
