The government has acquired a portion of two front yards on the West Tamar Highway to remove fencing and vegetation that obstruct the vision of drivers exiting Gravelly Beach Road.
The changes mean the line of sight would increase from 97 metres to 146 metres looking south, while a dip would be levelled and the footpath widened.
The works also include the addition of a right-hand turn into Gravelly Beach Road with a through-traffic lane, improved drainage and general road widening from Rosevears Drive to the intersection.
Mr Ferguson said the works would be completed by March.
"It's not a high crash intersection or anything like that, but since we are doing the $14 million overall project on the West Tamar Highway, we wanted to smarten this one up and make it more appropriate for residents and through-traffic," he said.
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"These acquisitions have only been done quite recently, we've been able to work really effectively with the landowners."
The amount to be paid to the two landowners was "yet to be finalised", subject to approval by the Valuer-General.
Nearby residents had wanted a roundabout, but Mr Ferguson said there were too many constraints.
"Given that this is a B-double route, a roundabout here is not feasible. You need 45-metres diameter to allow B-doubles to get around and we would immediately be encroaching on this issue, plus the geometry of this location isn't well-suited," he said.
The exit from Gravelly Beach Road, and the highway north of the intersection, would not be physically altered as part of the works. The rock wall and native vegetation would be retained, according to Mr Ferguson.
Gravelly Beach Road resident Patricia Stapleton was among those to contact Mr Ferguson requesting that the department consult more widely.
She said removing the visual obstructions would make the intersection safer.
"The problem is just that with traffic coming round the bend from the south, it's difficult to see the oncoming traffic, and so you've got to make a very quick judgement when you head out to turn right. Once you commit, you've really got to go," Mrs Stapleton said.
"It's been a problem for a number of years, and I think the proposed solution will be a good one, it will certainly increase the line of sight to the south which was the major problem."
But Gravelly Beach resident Barry Blenkhorn - who earlier gathered residents to call for the second round of consultation - remained disappointed that the roundabout idea was not going ahead.
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