Traffic signals and a reduced speed limit of 60km will be in place at the Jervis Bay Road and Princes Highway intersection over Christmas.
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The traffic plan for the intersection will be in place from now until January 27, 2019.
Transport for NSW regional director southern Sam Knight said when a reduced speed limit was trialled last year, it went well.
"The plan will be in place until Monday, January 27 and will help to alleviate congestion for westbound traffic accessing the Princes Highway from Jervis Bay Road," Ms Knight said.
"Last summer holidays, the speed limit on the Princes Highway at this intersection was reduced from 100 kilometres per hour to 80 kilometres per hour to help manage queuing and improve safety during peak traffic times.
"This temporary traffic arrangement received positive feedback from the community and visitors and will be put in place again this year.
"In addition to a speed reduction on the Princes Highway, temporary traffic signals will be implemented at this intersection."
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Transport for NSW crews will regularly monitor the traffic congestion and when it gets busy switch the traffic lights on and reduce the speed limit to 60km/h.
The signals will stay active until the traffic eases and the speed limit will be returned to 80km/h.
Ms Knight said motorists travelling through Jervis Bay are urged to take extra precaution when planning their journeys this holiday season.
"Based on last year's traffic data, we predict the weekend before Christmas and the weekend before New Year will be the busiest times to travel along the east coast of NSW," Ms Knight said.
"West and southbound traffic in Jervis Bay should expect delays up to 15 minutes prior to Christmas, delays of up to 30 minutes between Christmas and New Year's Eve, and delays of up to 75 minutes in the first week of 2020.
"Planning for improvements to this intersection continues as part of the commitment to upgrade the Princes Highway between Jervis Bay Road and Moruya."