Planning progresses for $940m Milton Ulladulla bypass project

Monica Gameng   |   September 29, 2026
Milton Ulladulla bypass project (cr: Transport for NSW)

The $940 million Milton Ulladulla bypass project is making major progress with the release of the Environmental Impact Statement (EIS) for public exhibition.

The community is now given the opportunity to explore the proposal, understand the potential benefits, impacts and mitigation measures as well as have their say on the EIS before the project move into the next stage.

This project is jointly funded by the Australian and New South Wales Governments, each contributing $752 million and $188 million respectively.

“The Albanese Government is investing in the infrastructure the South Coast needs for the future, and the Milton Ulladulla bypass is a major part of that work.

“Releasing the Environmental Impact Statement is an important milestone and gives the community the opportunity to have a detailed look at the proposal and help shape the project as planning progresses.

“This bypass has the potential to deliver safer and more reliable journeys, improve freight movements and support growing South Coast communities,” Acting Federal Minister for Infrastructure, Transport, Regional Development and Local Government Kristy McBain said.

The proposed Milton Ulladulla bypass will run west of the Milton and Ulladulla town centres, extending 12 kilometres from Little Forest Road in the north to Canberra Crescent in the south. Access to Ulladulla, Mollybrook, Narrawallee and surrounding communities will be maintained via an extension of Bishop Drive.

The concept design of the new bypass includes:

  • Tie-in and modifications to the local road network to maintain local access
  • Ten new bridges / culverts where the bypass crosses creeks and local roads
  • Two U-turn bays to allow emergency vehicles to safely turn around, emergency service access road connections and service gates
  • Walking and bike riding links
  • New infrastructure including fauna connectivity structures, drainage and stormwater features, noise walls (at some locations), safety barriers, signage and lighting
  • Landscaping and revegetation initiatives to re-establish native vegetation, stabilise earthworks and exposed slopes
  • Future opportunities to incorporate cultural, environmental and place-making elements such as artwork, sculptural pieces or wayfinding signage which showcase the unique identity of the local area

The bypass has been designed to separate local trips from through-traffic to help the Princes Highway function more effectively while creating safer and better-connected town centres.

“For too long, locals have had to plan their lives around traffic through Milton and Ulladulla, particularly during the holiday peak.

“We know that taking traffic and heavy vehicles out of the town centres will make a real difference for people who live, work and run businesses here.

“Unlike the former Government, we’re getting on with delivering this essential piece of infrastructure.

“The release of the Environmental Impact Statement marks another important step towards delivering this long-awaited project,” NSW Minister for Roads Jenny Aitchison said.

milton-ulladulla-bypass-map (1)Project map (source: Transport for NSW)

With the Milton Ulladulla bypass, locals will be seeing fewer cars and trucks travelling through town and less traffic using local streets as congestion shortcuts – meaning more reliable day-to-day journeys.

The greatest travel time benefits are expected to be seen during holiday peak when travel times are set to be reduced by 48 minutes northbound and 39 minutes southbound on opening.

The bypass will also help reduce interactions between local traffic, freight, pedestrians and cyclists by removing the significant volumes of through-traffic and heavy vehicles from the Milton and Ulladulla town centre, creating safer streets for local communities.

“This is a project the Milton Ulladulla community has wanted to see progress for a long time, so reaching the EIS stage is an important step.

“Getting through traffic and heavy vehicles out of the heart of Milton and Ulladulla would make a real difference to the way these town centres look, feel and function.

“It means safer streets, better connections for people walking and riding, and less pressure on local roads, particularly the busiest times of year.

“I encourage everyone across the community to have their say and make sure local voices continue to be heard as planning progresses,” NSW Minister for the Illawarra and the South Coast Ryan Park said.

Keeping freight and goods moving efficiently is critical for local businesses, tourism and the broader South Coast economy, and once the Milton Ulladulla bypass is opened to traffic it will remove about 780 heavy vehicles from the existing Princes Highway between the northern and central connections as well as 640 heavy vehicles between the southern and central connections.

Community members are encouraged to have their say during the public exhibition period of the EIS and concept design. Submissions can be made until 19 October 2026.

More information on the EIS, concept design and community drop-in sessions can be found here.

“Locals have been telling me for years about the impact congestion has on Milton and Ulladulla, particularly when holiday traffic brings the Princes Highway to a crawl.

“This project is about making everyday life easier for locals while keeping visitors, freight and businesses moving across our region.

“The release of the EIS gives our community a genuine opportunity to examine the proposal in detail and provide feedback on what matters most to them.

“I encourage everyone to get involved, attend one of the community sessions and have their say,” Federal Member for Gilmore Fiona Philips said.

“This is another important step forward for the Milton Ulladulla bypass and for a project that has been talked about in our community for many years.

“People who live in Milton and Ulladulla know firsthand the impact of congestion through our town centres, particularly during busy holiday periods, and the importance of planning for a long-term solution.

“The bypass is intended to reduce traffic through Milton and Ulladulla, improve safety and make journeys more reliable for locals, businesses and visitors.

“The release of the Environmental Impact Statement is an important opportunity for the community to look closely at the proposal, understand what is planned, and provide feedback.

“I strongly encourage locals to read the EIS, attend one of the community drop-in sessions and have their say as this project moves into its next phase,” State Member for South Coast Liza Butler said.

Source: Minister for Regional Development, Local Government and Territories; Transport for NSW (1, 2); NSW Government – Milton Ulladulla bypass

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Monica Gameng
As Felix's Marketing Assistant since 2015, Monica is responsible for researching and sharing new and progressing projects within the construction and mining sectors in Australia. It's no surprise that Monica has her finger on the pulse of Australian major projects given she has produced more than 3,000 posts to date. She truly is an industry expert!
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