A new, $77-million underpass will be built in Winnipeg to reduce severe congestion in the Transcona neighbourhood.

The federal, provincial and municipal governments will share the cost for the structure at Plessis and Dugald roads, chipping in $25 million, $25 million and $27 million, respectively.

People in the area have been lobbying for an underpass for years. Several trains block the busy intersection every day, resulting in long commute times.

The project includes the construction of a rail bridge, the reconstruction and widening of nearly a kilometre of Plessis Road, the construction of bicycle and pedestrian lanes, and the lowering of Dugald Road to accommodate the underpass.

The plan is to start construction in 2013 and complete it in two years.

A federal review of the project must be completed before the money from Ottawa is approved.

Waverley underpass

Meanwhile, another key area for traffic improvement, in the city's southwest, will have to wait.

A spokesperson for the city told CBC News that an under or overpass of the CN mainline near Waverley Street and Taylor Avenue is a high priority but a choice had to be made.

"An important consideration in applying to the Building Canada Fund, which ends in 2014, was the city’s anticipated ability to complete the project in the necessary time frame," said Tammy Melesko.

"The city could deliver the Plessis Road project in the required timeframe and did not think it could deliver a project in time with respect to the Waverley crossing." 

View Larger Map