Mr Kelly said the upgrade is what the Rudd Labor Government's Nation Building Program is all about.

"It is putting Australians to work building the road infrastructure vital to our nation's long term economic prosperity," he said. "The upgrade will provide a safer road for locals and those who visit this beautiful part of our state. The full 54 kilometre upgrade is on track to be completed by late 2010," Mr Kelly said.

Mr Whan said the second stage of the $95 million project involved the upgrade and sealing of nine kilometres of road between the junction of Touga Road and Nerriga.

"This upgrade of Main Road 92 is improving road safety and travel times for local communities and tourists using this key route linking Shoalhaven and inland NSW," he said.

"The upgrade is also great news for the region's economy, with the project creating more than 240 local jobs."

The project saw major improvements to the steep and narrow section of road from Bulee Gap to the Endrick River.

"Work also included building high retaining walls and a new four span bridge at the western end of Morton National Park near Bulee Gap," Mr Whan said.

Mr Brown said the upgrade is a great example of all three levels of Government working together to deliver the best road infrastructure for the South Coast and inland NSW.

"The Rees and Rudd Governments contributed $49 million and $34 million respectively to this upgrade, and Shoalhaven City Council provided the remaining $12 million," he said.

"Work on the third and final stage of the Main Road 92 upgrade is already underway, which is great news for people of the South Coast."

The final stage of the Main Road 92 upgrade will deliver 20 kilometres of upgraded road from Tianjara Falls to Billy's Hill near Bulee Gap.

"Stage one of the upgrade, 24km between Hames Road and Morton National Park was opened to traffic in June 2007," Mr Brown said.

The brief ceremony was attended by staff from construction company NACE, the Roads and Traffic Authority, Phil Roberts and Jenny Heffernan from the Nerriga Progress Association and a couple of residents from Shoalhaven Heads.