Gunnedah's newest roundabout was opened just ahead of Christmas.
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The $2 million Conadilly Street-Warrabungle Street roundabout was completed as part of the second rail overpass project.
Major work will now start on the road link for the overpass.
Member for Tamworth Kevin Anderson said the second road would significantly improve local road network connectivity in Gunnedah.
“There is a real need for a second bridge over the rail line in Gunnedah,” Mr Anderson said.
“The rail line separates the town centre and business district in the north of Gunnedah from the growing residential areas in the south.
“The Abbott St bridge was built in 1941 and is not able to cater for large freight vehicles, while local traffic is frequently delayed at the New Street level crossing when coal trains pass through town.”
A detailed design of the bridge is in progress and expected to be completed in the first half of 2016, with major work to start later in the year.
“Community members will be invited to view the detailed design at a community display early next year before its finalisation (and) tenders to build the bridge are expected to be called in mid-2016,” Mr Anderson said.
“In addition to a new road over the rail crossing, the project includes local intersection upgrades to improve pedestrian and motorist safety.
“The new roundabout at the intersection of View Street and the Oxley Highway will be upgraded to improve traffic flow and the intersection of Barber and Warrabungle streets will be upgraded so road users can better access the business district.”