Fulton Hogan has been selected to undertake the second construction package at the southern end of the Bruce Highway (Cooroy to Curra), Section B upgrade, with this work getting underway within weeks.

Federal Infrastructure and Transport Minister Anthony Albanese said excellent progress is being made on the jointly funded $613 million project, with major works having been underway since last September.

"Since we first announced funding, a little over seven months ago, two of the three major construction contracts have been awarded. Tenders for the third package of works are expected to be called in the middle of this year," said Mr Albanese.

"As well as reducing travel times and improving driving conditions for the users of this section of the Bruce Highway, the upgrade will support about 1,650 direct and indirect jobs."

The upgrade of the Bruce Highway near Gympie is part of the unprecedented $8.6 billion investment the Rudd Labor Government is making in Queensland's road and rail infrastructure.

Queensland Main Roads Minister Craig Wallace said the second package of work is critical to fast-tracking the project while minimising disruption for motorists.

"This package of work will build a two kilometre southern deviation off the Bruce Highway near Federal, between Sankeys Road and Middle Creek Road, allowing for construction of the new bridges over Skyring Creek," Mr Wallace said.

"This work is not a temporary measure but will form part of the overall 12 kilometre alignment.

"Weather permitting, duplication of the entire 12 kilometre Section B is expected to be completed in 2012."

The new section of highway has been designed as a superior, four-lane divided road, which will be out of the Mary River floodplain and above a one-in-100 year flood level.