The NSW government will scrap a proposed bypass for Nelson Bay Road, revealing updated plans it says will improve connections to Newcastle Airport and strengthen links to the M1, but some residents remain unconvinced.
The redesign comes after the road claimed the lives of two drivers this year, as well as several traffic incidents resulting in the closure of the major artery.
It has been a long wait for residents, with the then-Coalition government promising in 2015 that the entire road would be upgraded to dual carriageway.
The NSW government announced on Monday it had scrapped the former Coalition government's contentious Bobs Farm-to-Williamtown bypass, instead unveiling a revised three-stage design that it says better reflects what Port Stephens communities have been seeking, with pre-work due to start next year.
Under the design, stage one includes a 2.8-kilometre, four-lane road between Salt Ash and Bobs Farm, targeting one of the busiest and most crash-prone sections of the corridor.
Stage two will be expanded to include staged duplication of eight kilometres of road between Fern Bay and Williamtown, responding to growth pressure around Newcastle Airport.
Stage three will deliver safety upgrades between Williamtown and Salt Ash.
But residents and business owners have mixed feelings on the redesign.
Kent Sansom, the owner of Oakvale Wildlife Park, welcomed the news.
"We need some action, and this is a measured and staged approach that will lessen the impact on businesses," he said.
He was glad the Williamtown to Fern Bay stretch was getting attention.
"With the upgraded international airport, people need to get to and from Newcastle and it will relieve the traffic burden during the holiday season for tourists," he said.
Mr Sansom said the "offline route" would have had a huge impact on his business, with traffic disruption and construction impacting tourism.
"My family have farmed on this land for decades and the road was built on the high point from Nelson Bay to Newcastle," he said.
"They built it in the right place in the first place, so it makes sense to build off what is already existing."
Nelson Bay resident Mark Kelly called the revised plans a "typical pre-election announcement after years of inaction".
"Now we might get a cheap but staged round of upgrades over an unspecified number of years and with huge traffic disruption throughout and all running through the same old bottlenecks the offline route was designed to avoid," he said.
He called the plans "pretty dismal, but typical of what happens in the regions".
"This is the only road in and out of the Bay, and it has a terrible accident record," he said.
NSW Roads Minister Jenny Aitchison announced the new $275 million plan on Monday, replacing the previous proposal for a bypass at Salt Ash that had been allocated funding in the 2024 federal budget.
Transport for NSW had assessed the former plan as unworkable due to engineering, environmental, property and cost hurdles, the government said.
Nelson Bay Road carries more than 25,000 vehicles a day along its 43-kilometre length between Newcastle and Nelson Bay, but traffic numbers swell during holiday periods.
It is also a road with a deadly recent history.
Two fatal crashes have already been recorded on the corridor this year, at Salamander Bay in January and Anna Bay in February, after none were recorded in 2025.
The stretch between Anna Bay and Salamander Bay where both the fatal incidents occurred is not slated for any major upgrades as part of the project.
Transport for NSW figures show 115 crashes and 125 casualties, including four deaths and 47 serious injuries, were recorded between Taylor and Tallean roads alone between 2020 and 2024.
A serious three-vehicle crash near Marsh Road at Salt Ash in July, in which a truck driver had to be cut free from his cab, added to the toll of incidents on the route this year.
The government says some works will begin in 2027 ahead of stage one, specifically to respond to community safety concerns and reduce crash risk.
The government said the new design was shaped by feedback from the Port Stephens community and also takes into account changing demand across the wider network.
The M1 to Raymond Terrace extension is expected to ease pressure between Medowie and Richardson roads, while growth around Newcastle Airport is tipped to increase demand on the Fern Bay-to-Williamtown section.
The $275 million commitment is jointly funded by the NSW and federal governments, with the new design still to be formally submitted to Canberra for review.
Ms Aitchison said the plan delivered priority upgrades sooner while keeping full corridor duplication in view long-term.
"The former Liberal-National government's approach was never realistic, and it would have meant building through and dividing large portions of agricultural and sensitive land," she said.
"We've taken a different path, one that improves connections to Newcastle Airport, strengthens links to the upgraded M1 and takes a staged approach that responds to what the community needs now, while planning for the growth ahead."
Federal Member for Paterson Meryl Swanson said motorists deserved certainty the upgrades would serve the community, while state Port Stephens MP Kate Washington said the former government's plan "did not stack up" and the new approach would work better for locals, visitors and the environment.
Member for Newcastle Tim Crakanthorp said he was particularly encouraged by stage two, which he said would ease pressure on the growing number of commuters travelling to Newcastle and on air travellers heading south from the airport.
Some residents voiced scepticism about the staged approach, questioning whether the upgrades go far enough to fix congestion and emergency access.
They asked if full duplication of the corridor would ever be delivered given how long the project had already been on the table.
One resident called the latest plans a "cop out".
"There will still be only one road in and out and no guaranteed complete duplication," the resident said.
Another said it was exciting.
"With the Hexham bypass soon to open, this will make the journey to Nelson Bay so much safer and quicker," he said.
"Great to see there is a commencement plan."
Others raised concerns about local roads that they described as "crumbling" and "a mess". They said this needed to be addressed before the state-managed main road, pointing to the condition of routes such as Port Stephens Drive.
Residents also called for public transport options to be considered alongside any road works.
