Major construction is underway on the next stage of the Streamlining Hoddle Street project.

A continuous flow intersection will be built at the intersection of Hoddle Street, Punt Road and Swan Street to slash wait times for more than 90,000 vehicles that travel along Punt Road and Hoddle Street each day.

This new intersection will cut 45 per cent of the time currently dedicated to right-turning and through traffic that holds up drivers.

New and improved walking and cycling connections on Swan Street and Olympic Boulevard will also be included, in addition to accessible bus stops on Punt Road.

A new, accessible platform tram stop will replace some of the existing stops on Swan Street and Olympic Boulevard.

With major construction now complete on the first stage of Hoddle Street, between Johnston Street and the Eastern Freeway, drivers will notice traffic changes and disruptions at the intersection.

Lane closures will allow construction crews to begin service investigation and relocation, while one of the north-bound, left-hand turn lanes onto Brunton Avenue will be permanently removed from mid-October.

Upgrades to Punt Road, Swan Street and Brunton Avenue are due for completion in late-2019.

Watch the video to see how the new continuous flow intersection will work.