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Princes Highway Corridor Upgrade
Enhancing freight movements and community connectivity
The Princes Highway Corridor Upgrade, jointly funded by the Australian and South Australian governments, aims to enhance regional economic growth, improve accessibility, enhance tourism and ensure the safety and efficiency of South Australia’s portion of the Princes Highway corridor. Recently, South Australia’s Department for Infrastructure and Transport (DIT) awarded ACCIONA the contract to undertake the second stage of works for the section of the Princes Highway corridor in South Australia’s Limestone Coast region. This article presents an overview of these works. It covers key aspects such as project details, objectives, funding allocations, benefits for freight movements and motorists, encountered challenges and community responses.
The article also highlights ACCIONA's enthusiasm for collaborating with local contractors such as Gambier Earth Movers, a GEM Group Holdings Pty Limited affiliate, and their shared commitment to deliver these upgrades successfully.
Overview Of The Second Package Objectives
The second package of upgrades recently awarded to ACCIONA aims to improve the Princes Highway corridor from Tantanoola to the South Australian/Victorian border. ACCIONA is already delivering the first stage of works which cover the section of the highway between Meningie and Tantanoola.
These upgrades have several goals:
1. Enhancing access for efficient freight movements;
2. Improving regional road networks to enhance accessibility and community connectivity;
3. Boosting tourism in South Australia's regional areas; and
4. Ensuring long-term safety and efficiency for everyone who uses the road.
Works in the second package include:
• Extensions of three existing overtaking lanes on the Princes Highway – one near The Springs Road and Burrungule Road intersection (eastbound), one near Stringy Bark Road
(westbound) and one near Kangaroo Flat Road (eastbound).
• Four roundabout upgrades in Mount Gambier at the Jubilee Highway junctions with:
○ O’Leary Road and Graham Road;
○ Suttontown Road and Sutton Avenue;
○ Wehl Street North and Wehl Street South; and
○ Riddoch Highway (Penola Road).
• An upgrade at the Princes Highway intersection with The Springs and Burrungule roads between Millicent and Mount Gambier.
• An upgrade of an existing rest area opposite the Tantanoola Roadhouse.
The Australian and South Australian governments have jointly committed $266.3 million to the Princes Highway Corridor Upgrade program, with the Australian Government contributing $213 million and the South Australian Government $53.3 million.
Benefits For Freight Movements And Motorists
According to George Panagopoulos, Senior Project Manager at ACCIONA, the Princes Highway is a key corridor route for freight operators, tourists and local community members alike. As a result, numerous locations along this highway are currently undergoing upgrades.

“Implementing the second package of upgrades for the Limestone Coast will significantly benefit both high productivity freight movements and general motorists travelling along the Princes Highway,” he said.
“These upgrades aim to reduce travel times, improve road safety, enhance the infrastructure for efficient freight transport, and create rest areas for drivers. Improving safety was a significant driver for these upgrades, ensuring a safer road network for all users.”
Addressing Challenges And Considerations
In partnership with local subcontractors such as Gambier Earth Movers, ACCIONA has developed a number of strategies to address various challenges during the first stage of works – strategies that will continue to be adopted during the second stage. These challenges included managing temporary traffic disruptions, coordinating with local communities and farmers impacted by the upgrades, and adhering to new regional works standards mandated by the government.
Community members’ reactions to the upgrades have been predominantly positive to date.
Panagopoulos explained that when working on regional roads, the impact is typically contained to adjacent farmers and residents.
“Fortunately, our relationships are good, with ongoing communication and collaboration,” he said.
“For instance, excess spoil from the construction has been provided to local farmers who are happy to receive it. This arrangement helps to level their paddocks and assist with internal private roads or other purposes. The neighbouring communities are satisfied with the road upgrades and our friendly interface.”
The freight industry is also delighted with the project. Panagopoulos said ACCIONA has maintained positive engagement with the South Australian Road Transport Authority (SARTA).
“Steve Shearer is the Executive Officer at SARTA and a strong advocate for improving heavy vehicle routes,” Panagopoulos said.
“The ongoing communication we’ve had with him has been fruitful, and he supports the road construction efforts.
“So far, there has been no negative publicity surrounding the project; only positive feedback and a desire to complete it as soon as possible, which aligns with people's expectations.”
Excitement For Acciona
Winning tenders such as those for the Princes Highway upgrades brings great excitement to ACCIONA.
According to Panagopoulos, the company takes pride in its ability to contribute to regional development, stimulate the local economy, upskill local subcontractors, and create opportunities for growth and skill development within their team.
The positive impact on the community and the positive atmosphere among suppliers and subcontractors adds to the company's enthusiasm for delivering such projects.
"Furthermore, with projects such as the Princes Highway upgrades, we have the opportunity to nurture and enhance the growth of our employees by assigning them to lead their own projects, gaining valuable experience with our client, the Department for Infrastructure and Transport,” Panagopoulos said.
“We are very excited about this project. Our expertise spans road, rail, marine and renewable energy sectors into country regions. It's incredibly fulfilling because we witness first-hand the direct impact and benefits that our work brings to the people.
“The buoyant mood across the Limestone Coast is tangible, powered by an economy flourishing through the activation of our initiatives. As the chosen project executors for the Department, we are integral in driving this venture.
“Suppliers and subcontractors eagerly join the collective endeavour; their enthusiasm and zeal motivate us.”
Panagopoulos added: “We have a rich history of successfully delivering crucial road projects in South Australia, notably the Northern Connector.”
This significant project entailed the construction of a 15-kilometre stretch of brand-new motorway connecting the Port River Expressway to Port Wakefield Road, delivered with many local industry partners.
The Northern Connector project traversed diverse landscapes, including salt fields and agricultural properties.
“As we expand into new regions, we are capitalising on the expertise, experience and upskilled and dedicated workforce cultivated during such endeavours, leveraging their strengths to ensure consistent excellence,” Panagopoulos said.
Working With Subcontractors
ACCIONA chose GEM Group Holdings’ Gambier Earth Movers (GEM) as the subcontractor for both packages of work for the Princes Highway Corridor Upgrade between Meningie and the South Australian/ Victorian border.
James Koronis, Project Manager at ACCIONA, said ACCIONA’s approach to this undertaking, from the beginning, involved tendering work to be carried out in the state’s Southeast.
“We recognised that a project of this magnitude was significant for the region and believed it was crucial to adopt a strategy that would benefit both our company and the local industry,” he said.
Koronis emphasised the importance of local contractor involvement, drawing from the successful experience of the Northern Connector project. He explained that ACCIONA partnered with many local subcontractors during the tendering process.
“We aimed to foster a sense of ownership within the community and provide opportunities for local businesses to contribute to the project's success,” he said.
“Sometimes when projects increase in size and complexity, larger contractors do the work, and the local contractors just watch it happen and don't get a piece of what's being delivered in their backyard.”
Koronis said ACCIONA selected Mount Gambier-based GEM, a reputable, long-standing civil contracting company operating in the region, because “they have an extensive fleet of machinery, and their capabilities align with the project's requirements”.

According to Panagopoulos, while GEM does not currently possess the resources to manage a project of this magnitude independently, ACCIONA recognised their potential and expertise.
“Consequently, we formed a partnership with them, allowing them to become an integral part of our team and to grow by working with ACCIONA.”
Through collaboration, the project was divided into manageable portions. ACCIONA assigned specific responsibilities to GEM, who affirmed their capability by managing intersections and an overtaking lane. GEM has now commenced some tasks in the second package.
“We’ve allocated discrete packages of work to deliver from start to finish under our guidance and management,” Panagopoulos said.
“We are also helping facilitate their acquisition of systems, skills, and management practices we undertake as a larger organisation.
“We aim to showcase their competence to the State Government and highlight the enhancements we have jointly achieved in their operational methods through our collaborative partnership.”