
The Oak Flats roundabout from the northern approach. Photo: Andrew Sutton.
Plans to ease congestion at the busy Oak Flats Interchange have been delayed, with Transport for NSW confirming a major underground water main discovered last year has forced a redesign of the proposed upgrade.
The NSW Government previously committed $4 million to improve traffic flow at the roundabout connecting New Lake Entrance Road and Pioneer Drive by adding an additional left turning lane.
A left-turn lane on the southern approach to the roundabout aimed to reduce queuing from the Oak Flats Interchange to the roundabout and relieve congestion for motorists travelling into Shellharbour.
The additional lane was intended as an interim improvement while longer-term solutions for the Oak Flats Interchange area continue to be considered.
However, an update on the project had not been provided since April last year, when Transport for NSW stated on its website a submission report was expected to be released in late 2025 once investigations were completed.
This week a Transport for NSW spokesperson said after design and development work was carried out, utility investigations were then completed beneath the road surface in April last year revealing infrastructure that would affect the project design.
“These investigations identified a major water main that would be impacted by the project,” the spokesperson said.
“This has resulted in the project needing some redesign and additional work to determine a feasible option.”

A map of the proposed location for the additional left lane between the Oak Flats Interchange and roundabout. Photo: Transport for NSW.
The spokesperson said further updates would be provided as the project progressed.
It’s a project that has been under development for several years, creating strong community discussion due to it being one of Shellharbour’s key traffic pinch points.
It commonly experiences long queues at peak times, particularly for motorists entering and exiting the interchange and travelling toward Shellharbour via New Lake Entrance Road.
Transport for NSW carried out consultation on a review of environmental factors for the project, seeking community feedback on the proposed changes, but a report on this will also now be delayed.
“Transport asked the community for input on the review of environmental factors in August 2024,” the spokesperson said.
“This work and accompanying consultation report will be finalised when we have a better understanding of the underground utility impacts to the project.
“Transport expects to be able to release the consultation report in mid-2026.”
Construction timelines for the project remain uncertain.














