$21 Million Contract Awarded to Upgrade Central Arnhem Road, Boosting Safety and Regional Connectivity
The Northern Territory and Australian governments have announced a $21 million construction contract to upgrade a key section of the Central Arnhem Road, delivering safer, more reliable transport for remote communities, local industries and visitors across the Territory.
The contract has been awarded to Allan King and Sons, with construction scheduled to commence in September 2026 and be completed by December 2027.
The project will fully reconstruct and seal a 14-kilometre section of the highway, extending from the Manyallaluk turnoff to the Barunga Power Station. The existing narrow sealed road will be widened into a modern two-lane highway, improving road safety, freight efficiency and year-round accessibility.
The upgrade forms part of the $350 million Central Arnhem Road Upgrade Program, jointly funded by the Australian and Northern Territory governments. The Australian Government is contributing $280 million, while the Northern Territory Government is investing $70 million.
Authorities said the project builds on significant progress already made, with 25 kilometres of upgrades completed, 18 kilometres currently under construction, and additional sections in the design phase.
Stretching 645 kilometres, the Central Arnhem Road links the regional centre of Nhulunbuy with the Stuart Highway, serving Aboriginal communities while supporting mining, pastoral, freight and tourism industries throughout the region.
The project will include:
- Reconstruction and widening of the road to a dual-lane sealed standard.
- Flood immunity improvements to enhance year-round access.
- Upgrades to drainage systems, bridges and culverts.
- Realignment of key road sections to improve motorist safety.
Northern Territory Minister for Logistics and Infrastructure Bill Yan described the Central Arnhem Road as one of the Territory’s most important transport corridors, saying the investment would strengthen economic opportunities while delivering safer and more reliable travel for communities and businesses.
Australian Minister for Infrastructure, Transport, Regional Development and Local Government Catherine King said the upgrades would improve road safety, increase accessibility to remote communities and reduce travel times for both freight and passenger vehicles.
Member for Lingiari Marion Scrymgour said the project would create greater economic opportunities while making it easier for Territorians to access services and visit family in remote areas.
Federal Minister for Indigenous Australians Malarndirri McCarthy said the investment would improve safety and reliability for Aboriginal communities that depend on the Central Arnhem Road for access to education, healthcare, employment and essential services.
Once completed, the upgraded section is expected to provide stronger, more resilient road infrastructure, reduce wet season closures and improve connectivity across one of Northern Territory’s most important regional transport routes..
Source: NT Government Media
