The contract for construction of the M28 Cork to Ringaskiddy motorway has been signed, with the project expected to be completed by summer 2028.
The motorway will connect the port of Ringaskiddy in Cork harbour with the Jack Lynch Tunnel and the M8 Cork-Dublin motorway.
The construction contract signed by Cork County Council is valued at €206 million, and part of the total project budget of €456m.
The 11km motorway, which will be built by BAM, will be from the Bloomfield Interchange to Barnahely.
Funding for the project is being provided by Transport Infrastructure Ireland.
Taoiseach Micheál Martin, Minister for Transport Darragh O'Brien and Minister of State for Rural Transport Jerry Buttimer were among those who attended the signing of the contract at Cork County Hall.
Mr Martin said that the M28 is a "key component of Project Ireland 2040".
"It will strengthen Ireland's integration with European ports and trade corridors, supporting national competitiveness and connectivity," he said.
Minister Buttimer said that the motorway will be "transformative" for communities and businesses.
Work on the new motorway is expected to get under way in the coming months.