Construction has started on upgrading a section of the Pacific Highway north of Herons Creek that, in recent years, has been the scene of dozens of crashes and has claimed the lives of three people.

"The northbound carriageway between Herons Creek and Stills Road, which includes the notorious Bago Road intersection, will be rebuilt, parallel to the existing southbound road at a cost of $60 million," Mr Besseling said.

"Today's sod-turning ceremony marks the start of major construction work on the 3.5 kilometre upgrade, and will be welcomed by local residents who have campaigned for many years for improvements to the Bago Road intersection in particular.

"The existing northbound road will become a two-way service road, meaning locals travelling between Herons Creek and Wauchope won't have to use the highway at all.

"When the work is complete, the Bago Road intersection will be replaced by an interchange, improving safety for highway motorists and local traffic, and improved access to Herons Creek Public School," Mr Besseling said.