
The Dunedin City Council has advertised a tender process for stage 3 of the Harbour Arterial Improvement Project, a series of transport upgrades creating a central city bypass for traffic and heavy vehicles.
It is expected to reduce traffic flow through the centre city during construction of the new hospital and is planned to align with NZ Transport Agency Waka Kotahi work on State Highways1 and 88.

Council transport group manager Jeanine Benson said removing the parks would make room for an extra lane to help improve traffic flows in the area.She said $2.8 million had been budgeted in the nine-year plan for stage 3 of the improvement project.
Ms Benson has previously told the Otago Daily Times this included 51% NZTA co-funding.
A new roundabout will also be constructed at the nearby intersection of Otaki and Orari Sts.
The project timeline ran from late October to May next year and it was "essential" contractors minimised disruption to both traffic and businesses, the tender document said.
"Special consideration must be given to working closely with domestic freight forwarders on Strathallan St to avoid hold-ups in the area, particularly during the peak Christmas period."
In September 2023, the council’s hearings committee approved the removal of two restricted and 48 unrestricted parks along Strathallan St for the project.

Three businesses also held concerns about the decision to remove the parks because of the impact on workers.
Stage 2 of the project — in Thomas Burns St, between Fryatt and Bombay Sts — was scheduled after stage 3 to address congestion in Strathallan St earlier, Ms Benson said.
The council had budgeted $1.5m for the project in 2026-27.
Work along Wharf St between Kitchener and Birch Sts comprised stage 1 and had already been delivered at a cost of $1.5m, she said.
Earlier this year, Ms Benson said plans for a fourth stage, expected to include Ward and St Andrew Sts, had never been developed into a firm proposal, although it was possible it might be funded and progressed at a later date.