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There have been 87 crashes at the intersection since 2000, leaving 63 people with minor injuries and five with serious injuries.
The Connecting Dunedin transport partnership between the Dunedin City Council, NZ Transport Agency and Otago Regional Council is developing a business case of which funding for modifications to the intersection will be a part.
Solutions could include a truck ramp for vehicles with brake failure, traffic lights, or an overpass or underpass.
The NZTA said this week a completed programme business case with a preferred option was expected to be ready by about mid-next year.