Rebuilding of the Peace Arch border station is already underway on the Canadian side of the crossing. (CBC)

A new U.S. Customs and Border Protection facility at the Peace Arch border crossing is unlikely to be ready for the Vancouver 2010 Olympics, a U.S. official said Thursday, prompting concerns about traffic delays during the Games.

U.S. state and federal officials have been made aware of construction delays and are trying to come up with a solution, said Gary Tomsic, city manager of Blaine, Wash.

The U.S. General Service Administration announced plans to rebuild the Peace Arch border station in September 2007 to provide greater border security, expand traffic capacity and improve safety for employees and travellers, but construction has yet to begin.

The $70-million US project was scheduled to be completed by January 2010. The Games start on Feb. 12, 2010.

B.C. Transportation Minister Kevin Falcon said he's aware of the problem and his staff are keeping an eye on the situation.

"There is a concern that the project's schedule is slipping to the point that we could be in the middle of some fairly major construction when the Olympics is going on," Tomsic said during a Surrey Board of Trade meeting on transportation.

Tomsic said falling behind the construction schedule could mean there will be traffic delays during the 2010 Winter Games.

Falcon said he plans to work closely with transportation officials in the U.S. to co-ordinate a construction timetable to avoid delays during the Games, if it comes to that.

"Obviously, nobody's happy with the fact that [the] project, for whatever reason, is taking much longer than it ought to have, but we're going to have to deal with those issues as we come around to 2010," Falcon said.