The speed on Launceston's Southern Outlet will be reduced from early next week.
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The Department of State Growth will reduce the speed to 90km/h.
Changes will be implemented on both sides of the outlet, from the Howick Street intersection to Bass Highway interchange.
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Commissioner for Transport Gary Swain said the amount of crashes, including fatals, were the main reason behind the reduction.
"This section of the Midland Highway carries a high volume of traffic and since 2013 there have been 137 reported crashes on this section of road. There is a high nose-to-tail crash rate, indicating motorists are travelling too fast to stop safely," he said.
"Small reductions of 10 km/h in travelling speeds can lead to a 25 per cent reduction in serious casualties. A speed reduction on the Southern Outlet will improve safety for all road users."
Community consultation was undertaken earlier this year.
New speed limit signs are expected to be installed, but not before Sunday. 'New speed limit ahead' signs will also be placed to provide road users with advance warning of the change.
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