The clearways through the Bulli CBD will be extended, despite businesses being told last month they were to be scrapped.
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The extension of clearway hours was an option floated by Transport for NSW to tackle the increasing congestion through Bulli.
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It was a contentious option, with businesses along the Princes Highway objecting because it would leave their customers with no place to park.
In early March the businesses said they had been told the extended clearways option had been scrapped.
However, on Monday, Transport for NSW announced it was going ahead with them as part of a wider suite of measures to deal with congestion, following on from adding an extra left-turn lane from the roundabout at the intersection of the Princes Highway and Memorial Drive.
A Transport for NSW spokesperson said the hours of the existing clearways would be extended between Station Street and Park Road.
The northbound clearway is now in operation between 3-6pm on weekdays but will also operate between 6.30-9.30am.
Southbound, the clearway will be extended to operate over those same hours, as well as 11am to 1pm Saturday.
The changes are expected to be implemented by the middle of next year.
The closures will affect businesses along the Princes Highway because if people can't stop right outside the shop, then they're likely to keep driving.
Other changes will see the removal of right turns in and out of Station Street, with all northbound traffic looking to get to Bulli station having to turn right at Park Road.
As part of that change, a dedicated right-turn arrow will be introduced to the signals at that intersection.
There will also be new parking spaces and car park upgrades on Railway and Station streets.
"We are also progressing plans to upgrade the intersections of the Princes Highway with Grevillea Park Road and Point Street," the spokeswoman said.