The Highways Agency now estimates the design, development and construction project will cost £34m, less than half the North Lincolnshire scheme’s £80m initial estimate.

Work to turn the major road to the Port of Immingham into a dual carriageway was brought forward to start in summer 2015 instead of late 2016 in the 2012 autumn spending statement.

The 3-mile long road scheme was one of four brought forward as part of the Government’s National Infrastructure Plan to boost growth.

Costain will now start design development work this month.

Graham Dakin, Highways Agency project manager, said: “This project will substantially improve journey time reliability and safety.

“Over the next few months we will be working with the contractor to develop the detailed design and the construction programme ahead of our application for a development consent order being made to the Planning Inspectorate by early 2014.”

Andrew Wyllie, Chief Executive of Costain, said: “The award of this contract further demonstrates the successful implementation of our commitment to ‘Engineering Tomorrow’: to identify, develop and implement innovative solutions to complex national needs.”