Public consultation about the potential environmental impacts of a proposed 1.6km road bypass has commenced, weeks after construction tenders for the project were released.
The Caloundra Transport Corridor Upgrade (CTCU), which has been in planning since the early 2000s, will aim to improve connections between Omrah Avenue and Nicklin Way.
The project was referred for consideration as a potential Matter of National Environmental Significance (MNES) under the federal Environment Protection and Biodiversity Conservation Act in October 2024.
It was deemed to be a controlled action under the Act, which means the Environment Minister will make a decision about whether the project should go ahead.
A notification was published on the EPBC website on March 25 advising that Sunshine Coast Council – which will deliver the CTCU in partnership with the state government – was taking feedback on the project.
A spokesperson said the council had undertaken extensive stakeholder and community engagement for the project.
“Stakeholder feedback, including input from the project’s Stakeholder Interest Group and feedback provided to the Department of Climate Change, Energy, the Environment and Water (DCCEEW) during the public comment period in October 2024, has helped shaped the final design and environmental management plans, including the preliminary documentation (PD) currently open for comment,” they said.
“Council will consider public feedback on the PD received by 5pm on Friday, April 10. All comments received will be addressed as part of finalising the project’s environmental management plans and approvals.”
The spokesperson said a final decision from the DCCEEW was expected to follow the public comment period.
“The EPBC process plays a critical role in protecting threatened species, habitats, and places of environmental significance within our community,” they said.
“The CTCU project team remains committed to aligning EPBC requirements with procurement processes to ensure the best outcomes for our community, with approval of the project under the EPBC Act to be received prior to construction starting.”
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The EPBC notification says the project could have “significant impacts” on “listed threatened species and communities” including koalas, coastal swamp sclerophyll forest and Ramsar wetlands.
The preliminary documentation includes more than 250 pages, not including appendices.
The project has proved controversial, with the community raising concerns about resumptions, the four-lane design and possible environmental impacts.
A petition seeking an independent review of the project was also presented to the council in June last year, but a spokesperson said it was pushing forward with its plans.
“The request to reconsider the project or its construction is not supported by council and the Queensland Government’s Department of Transport and Main Roads (TMR),” they told Sunshine Coast News in July.
The design for the CTCU was finalised by the council and TMR in May 2025 and a call for construction tenders was released in March.
“Tenders are now open for the Caloundra Transport Corridor Upgrade, a new road connection being delivered in partnership between the state government and Sunshine Coast Council,” Mayor Rosanna Natoli posted on March 9.
“This important project will help divert traffic away from the Caloundra Road and Nicklin Way intersection, improving traffic flow across the local road network, easing congestion, enhancing safety and making it easier for locals to get where they need to go.”
The council spokesperson said that subject to the finalisation of the EPBC process and the appointment of the major construction contractor, construction of the CTCU was anticipated to start in mid-2026 and be completed in early 2028, weather and site conditions permitting.
“Council and TMR are committed to working closely with contractors to ensure the community and local businesses are kept well informed about construction plans, staging and timing,” they said.
The project will be delivered in two stages: Section 1, from Omrah Avenue to Arthur Street, will be delivered and funded by the council; while Section 2, between Arthur Street and Nicklin Way (referred to as the Third Avenue extension), will be delivered and funded by TMR in partnership with the council.
The cost of Section 1 was previously estimated at $19.6 million, while Section 2 was reportedly $18.2 million split between all three levels of government, but in November 2023 the federal government withdrew its $7 million commitment.
Sunshine Coast News asked the council for an updated estimated cost but was told: “Project cost estimates are considered confidential to ensure the integrity of the procurement process and to maintain a competitive environment.”
State MPs visited Caloundra in March to hail their plan to “get the Sunshine Coast moving again”, which includes the CTCU alongside The Wave and Mooloolah River Interchange Upgrade.
The EPBC documents can be viewed on council’s CTCU project page or at its Maroochydore and Caloundra customer contact centres, or the State Library of Queensland.
