Nicklin Way, Third Avenue extension, new intersection
The Queensland Government, in partnership with Sunshine Coast Council (Council), is delivering the Caloundra Transport Corridor Upgrade, including a new signalised intersection on Nicklin Way and extension of Third Avenue.
The upgrade will improve access into Caloundra's CBD and reduce traffic congestion at the Caloundra Road, Nicklin Way and Pelican Waters Boulevard intersection.
The project is being delivered in 2 sections:
- Section 1 – Omrah Avenue to Arthur Street – is being delivered and funded by Council
- Section 2 – Nicklin Way, Third Avenue extension – is being delivered by Council and is jointly funded by the Queensland Government and Council.
Benefits
- Returns local roads
- Improves network efficiency
- Increases traffic flow
- Reduces peak hour congestion
- Better road access
- Reduces travel time
- Contributes to economy
- Contributes to regional growth
- Better active transport
Key features
Section 2 includes:
- a new 4-way signalised intersection connecting Nicklin Way and Third Avenue
- an extension of Third Avenue between Nicklin Way and Arthur Street with 2 lanes in each direction
- an underpass at West Terrace to provide safer pedestrian and cyclist movements
- new separated walking and cycling paths to improve active transport access to Caloundra
- smart lighting featuring motion activation and dimming to improve safety and reduce energy use.
A fly-through video of the project is available on Sunshine Coast Council's webpage.
View the final design of the Caloundra Transport Corridor Upgrade.
Funding
This project is part of the Queensland Government's Caloundra Congestion Busting Plan.
The project is funded by the Queensland Government and Sunshine Coast Council.
Investment ID: 3582510
Current status
Construction began in September 2026, with works underway on both sections of the project.
Consultation
The Caloundra Transport Corridor Upgrade has been informed by more than a decade of community engagement, including consultation on transport studies, planning schemes and concept designs. A Stakeholder Interest Group, established in 2022, also played an important role by helping to refine the design—particularly around retaining vegetation, enhancing active transport facilities and maintaining connections to local parks.
The project team will continue to keep the community informed as construction progresses.
Environment
The project has undergone extensive environmental assessment. It was referred under the Environment Protection and Biodiversity Conservation Act 1999 due to potential impacts on Matters of National Environmental Significance.
Following assessment, the project has been approved as a controlled action, meaning it can proceed subject to conditions designed to avoid, minimise and manage environmental impacts.
To meet these conditions, the project incorporates measures to avoid and minimise environmental impacts wherever possible, with detailed environmental management plans guiding construction and operation of the corridor. An environmental offset will also be established to compensate for unavoidable impacts on important environmental values by restoring and protecting habitat at another location.
Section 2 Nicklin Way, Third Avenue extension location map
